By Staff Reporter |
Republican lawmakers in the Arizona House are continuing their investigation into Gov. Katie Hobbs over an alleged pay-to-play scheme.
On Monday, House Speaker Steve Montenegro (R-LD29) announced the House advisory team obtained outside counsel from out of state to investigate the connection between Hobbs and a Glendale group home, Sunshine Residential Homes, independently.
Montenegro said in a statement that the connection between the governor and the group home constituted special treatment derived directly from political donations. The lawmaker said that the addition of outside counsel was necessary to achieve the full independence an investigation of this significance needed.
“The advisory team has done serious, disciplined work, and their recommendation to bring in independent counsel is the right next step,” said Montenegro. “The House will not look the other way when taxpayer dollars and vulnerable children may have been used as leverage in a political scheme. We will follow the facts, consider the findings, and ensure transparency and accountability in state government. Arizonans deserve nothing less.”
The outside counsel is Justin Smith with the Missouri-based James Otis Law Group. The law group was founded by Trump’s solicitor general, D. John Sauer.
Smith is the listed counsel in President Donald Trump’s lawsuit against a woman, E. Jean Carroll, alleging battery and defamation. Carroll sued Trump for defamation after he publicly denied her 2019 claims of him sexually assaulting her in the 1990s.
That petition is before the Supreme Court.
According to Montenegro, Smith will conduct records review and interviews. All findings will go directly to the advisory team and House leadership.
Advisory team members are State Reps. Selina Bliss (R-LD1), David Livingston (R-LD28), Matt Gress (R-LD4), Quang Nguyen (R-LD1), and Neal Carter (R-LD15).
Last November, that advisory team was created to follow up on 2024 media reporting alleging the pay-to-play scheme within the Arizona Department of Child Safety under Hobbs’ direction.
In the summer of 2024, the Arizona Republic reported that Sunshine Residential Homes received a unique 30% rate increase following a donation exceeding $400,000 to Hobbs and the Arizona Democratic Party.
Much of 2024 was spent attempting to determine who, if anyone, was fit to conduct an investigation into the allegations against the governor.
One of the earliest requests came from Republican State Sen. T.J. Shope, who asked Attorney General Kris Mayes to investigate. Mayes complied initially, but was immediately hit with other Republican lawmakers and state leaders asking her to recuse herself due to an alleged conflict of interest.
State Rep. Matt Gress asked Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry to investigate.
All three leaders are investigating. Mitchell and Perry are coordinating on one investigation, while Mayes will conduct her own investigation.
As reported last November, the work of the House’s advisory team will coordinate with these parallel investigations by the auditor general and county attorney, and the attorney general.
In February 2024, Sunshine Residential Homes owners Elizabeth and Simon Kottoor maxed out their donations to Hobbs’ reelection campaign. Each gave the maximum $5,400 contribution amount.
In October 2022, the Kottoors gave Hobbs’ initial gubernatorial campaign $10,000.
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