Catherine Pugh, Tax Evasion, Maryland 2020

Baltimore, Maryland – In a shocking turn of events, Catherine Elizabeth Pugh, the former mayor of Baltimore, Maryland, pleaded guilty to federal charges of conspiracy to commit wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur.

According to the indictment, Pugh used her business bank accounts for personal and business finances, and did not maintain a personal bank account. She also owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written.

The indictment alleges that Pugh conspired with others to defraud the United States and commit wire fraud. The charges against her carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a period of supervised release of up to 3 years.

Pugh's plea agreement states that she will be sentenced on February 27, 2020, at 10:00 a.m. before U.S. District Judge Deborah K. Chasanow.

“Catherine Pugh betrayed the public trust for her personal gain,” said United States Attorney Robert K. Hur. “Baltimore City faces many pressing issues, and we need dedication and integrity from our leaders—not corruption—in order to solve them. Law enforcement will continue to be vigilant for evidence of fraud and corruption, to ensure that our citizens receive the honesty and professionalism they deserve from government officials.”

The indictment against Pugh alleges that she failed to pay taxes on income she earned through her business and personal activities. The charges against her carry a maximum sentence of 5 years in prison and a fine of up to $250,000.

Pugh's sentencing date has been set for February 27, 2020, at 10:00 a.m. before U.S. District Judge Deborah K. Chasanow. The charges against her are a serious blow to her reputation and a reminder that public officials will be held accountable for their actions.

In a statement, Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division said, “The people of Maryland expect elected officials to make decisions based on the public's best interests, not to abuse their office for personal gain. Catherine Pugh betrayed the public's trust. The FBI will continue to diligently work to detect fraud and corruption and hold those who violate this trust accountable.”

According to her plea agreement, Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. She also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore.

Pugh's sentencing date has been set for February 27, 2020, at 10:00 a.m. before U.S. District Judge Deborah K. Chasanow. The charges against her carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a period of supervised release of up to 3 years.

Source: https://www.justice.gov/usao-md/pr/former-baltimore-mayor-catherine-pugh-pleads-guilty-federal-conspiracy-and-tax-charges