Arizona AG opens criminal investigation into corruption allegations linked to state's Democratic governor

Arizona's top law enforcement official has opened a criminal investigation into corruption allegations involving Democratic Gov. Katie Hobbs and donations from a group home company.

Attorney General Kris Mayes informed the Legislature that she had received a criminal referral from a Republican lawmaker regarding allegations regarding Sunshine Residential Homes and agreed to open an investigation.

“The Criminal Division of the Attorney General’s Office is legally authorized to investigate the allegations and offenses described in your letter. To this end, the Attorney General’s Office will open an investigation,” Mayes wrote Friday evening.

The announcement came after one of the state's largest newspapers, The Arizona Republic, reported that the group home company that cares for vulnerable children got a 60 percent rate increase after donating about $400,000 to Hobb's inauguration and the state Democratic Party.

Sunshine requested a rate hike to address financial difficulties linked to the COVID-19 pandemic and inflation, the newspaper reported.

State Sen. TJ Shope, a Republican, called for an investigation after The Arizona Republic's report. “I have to believe that they at least view the allegations the same way I do, which is troubling at best and maybe worse,” Shope said.

Mayes also wrote to Maricopa County authorities Saturday, asking them to recuse themselves 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 released a statement denying any wrongdoing.

“Much like past investigations launched by radical and partisan lawmakers, the administration will be cleared of any wrongdoing,” the statement said. “Governor Hobbs is a social worker who has stood up for Arizona families and children. It is outrageous to suggest that his administration would not do what is right for children in foster care.”