By Matthew Holloway |
Following a post on X mourning the reported buyouts of Arizona Republic writers and reporters, Arizona Democratic Attorney General Kris Mayes received a harsh rebuke for her participation in a 2000 stock trading scandal. Mayes acknowledged being a party in a 2003 article after resigning from the newspaper.
In her August 13th post, Mayes wrote, “The buyouts at the Arizona Republic are devastating. Losing legendary reporters like @maryjpitzl means less accountability and less transparency for the public. And it’s bad news for democracy. As a former Republic reporter it breaks my heart to see the state of the paper today.“
Brian Anderson, Founder of the Saguaro Group and Arizona Capitol Oversight, quoted the post from Mayes the following day. His post included a newspaper clipping dating to the 2003 Arizona Republic story that revealed Mayes’ participation in purchasing stock from Central Newspapers Inc. (CNI) shortly before the sale of the Arizona Republic to Gannett Co., Inc.. The stock trade netted the then-beat reporter approximately $5,000, according to Mayes.
Anderson wrote, “When @KrisMayes was a ‘journo’ at @azcentral, she was investigated for insider trading and then suddenly resigned.”
According to a 2022 article in the Republic, when the scandal came to light again in Mayes’ campaign for the AG Office, the Democrat defended the purchase of CNI stock. No charges against Mayes or the other nine members of the Republic newsroom were brought at the time.
However, as the Republic noted, a letter to readers in the newspaper in 2000 from then-Executive Editor Pam Johnson announced the scandal, informing readers that 10 of its “newsroom staff” were flagged by the company after purchasing CNI stock through their 401(k) accounts.
Johnson, who passed away at the age of 74 in 2021, openly chided her staffers, including Mayes, for violating the Republic’s ethics policy. She wrote, “Republic journalists should never attempt to gain from information the general public does not have access to.”
She told readers:
“In this case, we investigated all of those involved and concluded that no one had what securities regulators would consider ‘insider information.’ That is to say, they had no concrete evidence that the company was going to be put up for sale. And therefore, there were no legal implications. They acted on gossip. Still, they heard or saw things that the general public couldn’t.”
“Many of our staff members heard or saw those same things and did not act. As one said: ‘I didn’t know if it was illegal, but I knew it wasn’t right.’ We agree,” she added.
According to AZCentral, the punishments handed down in the incident included suspensions without pay for four supervisors and formal letters placed in the personnel files of six reporters, including Mayes. The Attorney General has maintained that her subsequent resignation was planned in advance so that she could attend law school.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
