Previously, board members have denied knowledge of a deal involving former board member and former Baltimore Mayor Catherine Pugh, who had a $500,000 deal with the health system to distribute her Healthy Holly children’s books to the city’s public schools. The book deal was central to her fraud scheme, which involved double-selling the books and using the profits to fund straw donations for her mayoral campaign and to renovate her home. Ms. Pugh pleaded guilty in November to charges of conspiracy to commit wire fraud and defraud the federal government, as well as two charges of tax evasion.
The Baltimore Sun report indicates some board members may have been aware of the deal at a high level. A returning board member, Barry Gossett, said board members’ trust in health system leadership “was misplaced,” and they did not ask for more details when they learned of the deal from the health system’s former CEO, according to the report.
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