Rachel Mitchell plans to launch additional investigation into alleged 'pay for play' scheme with Hobbs donor (2024)

PHOENIX — Maricopa County Attorney Rachel Mitchell has declared her intent to pursue an investigation into Sunshine Residential Homes and its alleged relationship with Arizona Gov. Katie Hobbs and the Department of Child Safety (DCS). Mitchell made her decision clear in a letter sent to Mayes on Tuesday and obtained by ABC15.

Sunshine is a state-contracted group home for foster children, receiving taxpayer dollars to care for some of the state's most vulnerable. The ArizonaRepublic revealed last week that Sunshine had donated hundreds of thousands of dollars to both Hobbs' inaugural fund and the Arizona Democratic Party.

Last week, Mayes announced her own criminal investigation into an alleged "pay for play" scheme that was sparked by The Republic's reporting. Mayes also sent letters to Mitchell's office and the state's auditor general, asking both to stand down from their own investigations into the matter, saying those probes would be inappropriate and could "jeopardize the integrity" of her office's investigation.

Mitchell responded Tuesday in a letter addressed to Mayes, in which she emphasized the need for transparency and declared her office would also prosecute in the case if warranted.

"I want to be clear: This is not an accusation against you or the many fine employees in your office," Mitchell's letter read, in part. "We are in a time when people are increasingly distrustful of government. Your insistence on being the sole investigator in this matter will greatly contribute to people's district but also to their belief that nothing can change."

Mayes, Mitchell, and the state's auditor general all received letters from State Sen. T.J. Shope, R-16th District, last week. Shope, chair of the Senate's Health and Human Services Committee, asked each entity to investigate if there were any improprieties in the relationship between Hobbs, DCS, and Sunshine Residential.

Mayes' decision to pursue an investigation into the alleged "pay for play" scheme has sparked a new question: who should be leading investigations that may involve top state leaders, like a governor?

If you ask former Arizona Supreme Court Justice Andrew Gould, a veteran in the world of Arizona politics and law, the answer is the state's attorney general.

"I think people have to let the Attorney General do her job," said Gould, who was appointed by Republican Doug Ducey to the state's highest court. "This is a time to set aside politics and let the investigation move forward."​

Gould said it is normal for things to get confusing in the early stages of an investigation: ​"Questions are always going to arise as to, who is the investigator? What's the agency? Are they biased or are they impartial?"​

Gould points out that if you look at recent state history, it's the attorney general who has played the lead role in investigations involving high-level state figures. In the late 1980s, for example, Arizona Gov. Evan Mecham was prosecuted by then-Attorney General Robert K. Corbin over misuse of campaign contributions. He was later impeached by the legislature.

Mayes has been asked by State Rep. David Livingston, R-28th District, to recuse herself from the investigation over concerns that she would not be able to properly investigate a member of her own party. On Monday, Arizona State Treasurer Kimberly Yee, a Republican, requested Mitchell, a fellow Republican, conduct her own investigation to ensure objectivity.

However, Mecham, a Republican, was prosecuted by a member of his own party and impeached by a Republican-led legislature. He was later acquitted.

Gould says he expects Arizona's current system will lead to similar fair results if needed.

"I believe in the system. I believe that people will do their job. I believe that it can work regardless of party," he said. "I understand people's concerns, but let's give this a chance to play out first."​

Gould also agreed with Mayes, expressing concerns that multiple investigations could harm final results.

​"Think about the impact of having different agencies at the same time doing those things. Two or three agencies asking for documents, two or three agencies trying to interview the same agencies. It inevitably would slow it down," he explained. "They could end up with different conclusions."

Regardless of who investigates, Hobbs' office has said she will be cleared of any wrongdoing.

A representative for Sunshine Residential Homes, Tommy McKone, provided the following statement to ABC15:

Sunshine Residential continues to remain committed in caring for the population they have served for several decades in Arizona — troubled and vulnerable youth receiving the resources necessary to thrive. Sunshine Residential has always been steadfast in their commitment and partnership to the State of Arizona and remain committed to do so going forward while cooperating fully with any inquiry by any investigative agency.

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