Arizona AG opens criminal probe into corruption allegations tied to state’s Democrat governor

Arizona’s top law enforcement official has opened a criminal probe into corruption allegations involving Democrat Gov. Katie Hobbs and donations from a group home business.

Attorney General Kris Mayes notified the Legislature that she had received a criminal referral from a GOP lawmaker involving allegations with Sunshine Residential Homes and had agreed to open a probe.

“The Criminal Division of the Attorney General’s Office is statutorily authorized to investigate the allegations and offenses outlined in your letter. To that end, the Attorney General’s Office will be opening an investigation,” Mayes wrote late Friday.

The announcement came after one of the state’s largest newspapers, The Arizona Republic, reported that the group home business that cares for vulnerable children was approved for a 60% rate hike after it donated about $400,000 to Hobb’s inauguration and the state Democratic Party.

Sunshine requested the rate hike to address financial hardships amid the COVID-19 pandemic and inflation, the newspaper reported.

State Sen. T.J. Shope, a Republican, requested the probe after the report in The Arizona Republic. "I have to believe that they, at the very least, see the allegations the same way that I do, which is troubling at best and possibly worse," Shope said.

Mayes also wrote authorities in Maricopa County, asking them Saturday to stand down from investigating the same allegations. “It would not be appropriate or in the best interest of the state to conduct parallel investigations into the same matter,” the attorney general wrote. 

Hobbs’ office issued a statement denying wrongdoing. 

“Just like past investigations instigated by radical and partisan legislators, the administration will be cleared of wrongdoing," the statement said. "Governor Hobbs is a social worker who has been a champion for Arizona families and kids. It is outrageous to suggest her administration would not do what’s right for children in foster care."