Arizona AG declines to charge Gov. Hobbs in pay-to-play probe

Arizona Attorney General Kris Mayes announced that Governor Katie Hobbs will not face criminal charges following a two-year investigation into an alleged pay-to-play scheme. The probe focused on Sunshine Residential, a provider of foster care beds, which contributed approximately $100,000 to Hobbs’ inaugural fund and the Arizona Democratic Party before receiving a 30% increase in state payments.

While the investigation confirmed a personal friendship between Hobbs and the company’s owner, Simon Kottoor, Mayes stated that officials found no evidence of a bribe or the necessary quid pro quo to support a bribery charge. Investigators reviewed over 100,000 documents and one terabyte of data. The report suggested the rate increases were likely due to the company’s “outsized leverage” over the Department of Child Safety, as the agency relied on the provider to maintain bed capacity.

Despite the decision not to prosecute, Mayes urged legislative reforms to increase transparency regarding political donations. A separate investigation by the Maricopa County Attorney and the state auditor general remains ongoing.