Mitchell launches further investigation into alleged pay-for-play scheme

PHOENIX — Maricopa County District Attorney Rachel Mitchell has declared her intent to launch an investigation into Sunshine Residential Homes and its alleged connection to Arizona Governor 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-run group home for foster children that receives taxpayer money to care for some of the state’s most vulnerable. The Arizona Republic revealed last week that Sunshine has donated hundreds of thousands of dollars to both Hobbs’ inauguration fund and the Arizona Democratic Party.

Last week, Mayes announced her own criminal investigation into an alleged “pay-for-play” scheme sparked by The Republic’s reporting. Mayes also sent letters to Mitchell’s office and the state’s auditor general asking both to resign from their own investigations into the matter, saying those investigations would be inappropriate and could “compromise the integrity” of her office’s investigation.

Mitchell responded in a letter to Mayes on Tuesday, stressing the need for transparency and saying her office would also file charges in the case if warranted.

“I want to be clear: This is not an accusation against you or the many fine people in your office,” Mitchell’s letter said. “We live in a time when people are becoming increasingly distrustful of government. Your insistence on being the sole investigator in this matter will severely dampen people’s spirits, but will also reinforce their belief that nothing can change.”

Mayes, Mitchell and the state auditor general received letters last week from Sen. TJ Shope, R-16th District. Shope, chairman of the Senate Health and Human Services Committee, asked each agency to investigate whether there were any irregularities in the relationship between Hobbs, DCS and Sunshine Residential.

Mayes’ decision to launch an investigation into the alleged pay-for-play scheme raises a new question: Who should lead investigations that potentially involve high-ranking state officials, such as a governor?

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

“I think people need to let the attorney general do her job,” said Gould, who was appointed to the state Supreme Court by Republican Gov. Doug Ducey. “Now is the time to put politics aside and let the investigation move forward.”​

According to Gould, it is normal for confusion to arise in the early stages of an investigation: ​“There will always be questions: Who is the investigator? What agency is it? Are they biased or impartial?”​

Gould points out that in the state’s recent history, the attorney general has played the primary role in investigating high-ranking state officials. In the late 1980s, for example, Arizona Governor Evan Mecham was charged by then-Attorney General Robert K. Corbin with misusing campaign contributions. He was later impeached by the legislature.

Mayes was asked by House Representative 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, called on fellow Republican Mitchell to 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 believes Arizona’s current system will produce similarly 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 it a chance to develop first.”​

Gould also echoed Mayes, expressing concern that multiple investigations could affect the final results.

​“Think of the impact if different agencies are doing these things at the same time. Two or three agencies requesting documents, two or three agencies trying to question the same agencies. That would inevitably slow things down,” he explained. “They could end up coming to different conclusions.”

Regardless of who conducts the investigation, Hobbs’ office has said she will be cleared of any wrongdoing. Sunshine did not respond to requests for comment on the investigation.