Dem Baltimore Mayor Resigns Amid Financial Scandal

Pugh's leave came as the book scandal was careening toward a full-blown crisis, one which she was unable to tamp down.

According to the Sun, CareFirst BlueCross BlueShield also bought some of Pugh's illustrated books in 2011 and 2014.

"This was the right decision, as it was clear the mayor could no longer lead effectively", Gov. Larry Hogan said in a statement.

FILE PHOTO: State Senator Catherine Pugh speaks during a TV interview near the City Hall in Baltimore, May 2, 2015. Still on a leave of absence and claiming illness, her attorney read her official resignation.

Pugh, 69, has been mayor since 2016, and served on the Baltimore City Council since 1999.

"I am confident that I have left the city in capable hands for the duration of the term to which I was elected".

"I want to thank all of our department heads and staff who work hard every day to improve the quality of life for all who live, work and visit our city", the statement added.

Young had been Baltimore's acting leader for a month already, ever since Pugh departed on indefinite leave, saying she was physically ill and emotionally overwhelmed amid the scandal involving her self-published children's books. Dixon was investigated for theft, fraud, embezzlement, and perjury shortly after taking office in 2008. Last week, Silverman had told reporters that she might be "lucid" enough to make a decision this week.

The Democrat earned thousands of dollars through sales of Healthy Holly books to city-linked public entities. All in all, the total purchase of books, which were all earmarked to be donated to Baltimore City Schools, should have equated to almost 85,000 copies.

The FBI confirmed to CBS News, the BBC's United States affiliate, that it was working with the Internal Revenue Service (IRS), America's tax-collection agency, on the inquiry into Ms Pugh's book sales. The City Council called for Pugh's immediate resignation, as did numerous state lawmakers and an influential business group, among others.

Before she became mayor, Pugh once sat on a state Senate committee that funded the major health network.

Following the law enforcement raids, 14 of the 15 members of the Baltimore City Council urged Pugh to resign.

Pugh resigned amid an intensifying scandal and multiple investigations into the lucrative sales of her self-published children's books. The most notable crime was the theft of donated gift cards intended for needy families, which she used to purchase several fur coats and designer shoes.

Baltimore deserves a mayor who can move our great city forward. Pugh was on sitting on the board of UMMS when it approved the book purchase, and Kaiser was seeking a $48 million contract with the city. The books, "Healthy Holly", was about a young black girl who promoted the benefits of nutrition and exercise. That is Pugh's company. The UMMS deal alone was for 100,000 books.

While Pugh stepped down from the board and called the book deal a "regrettable mistake", she repeatedly said she would not be stepping down as mayor.