February, 18 2020, 11:00pm EDT

For Immediate Release
Contact:
Don Owens, dowens@citizen.org, (202) 588-7767
Mike Stankiewicz, mstankiewicz@citizen.org, (202) 588-7779
Ethics Commission Should Investigate Gov. Hogan's Apparent Financial Conflicts of Interest Related to New Interchange And Other Improvements
Public Citizen Asks the Maryland State Ethics Commission to Investigate Violations
WASHINGTON
The Maryland State Ethics Commission should investigate whether Gov. Larry Hogan has conflicts of interest related to his public office and private business interests that could violate state ethics laws, Public Citizen said today in an ethics complaint to the commission.
Hogan founded and served as president and CEO of The Hogan Companies (now HOGAN), a Maryland real estate firm; after he took office, his brother became president of HOGAN. Nonetheless, Hogan maintains a financial stake in the company. Hogan's income from his business interests has far exceeded his gubernatorial salary. He has earned more than $2 million from these investments during just the first three years of being governor - more money than any other sitting governor has earned in the history of the state. These business stakes have led to concerns that Hogan may be making official decisions in public office concerning transportation, the environment, affordable housing and other development projects that have enriched himself and his family.
Hogan appears to have directly participated in making a major change to the 2015-2020 Capital Transportation Program and related 2015 transportation budget. His decision to expedite the construction of, and designate $58 million for, a new highway interchange in Brandywine, Md., enhanced the development value of several parcels of land HOGAN acquired during the state construction project. Hogan reportedly did not inform the Maryland General Assembly of his financial interests while seeking funding for the state project, which he is required to do under state law.
In addition to the Brandywine interchange, his administration has advanced other improvements in the same area, including the construction of embankments, exit ramps and median piers, a new park-and-ride lot and a bridge.
State public ethics law says that "an official or employee may not participate in a matter if ... the official or employee or a qualifying relative of the official or employee has an interest in the matter."
Meanwhile, other properties owned by HOGAN also have benefited from other transportation and land development projects begun during his administration, such as projects near HOGAN's the Villas at Severn Crest and a townhouse development project at Queens Chapel Road.
Hogan attempted to address some conflicts of interest by placing his properties into a trust. However, the trust is managed by the governor's business partners, and the company remains under the control of the Hogan family, leaving Hogan's trust falling short of a genuine blind trust sufficient to avoid conflicts of interest.
"It's as if Hogan is taking his ethics cues directly from President Donald Trump," said Craig Holman, government affairs lobbyist for Public Citizen. "Maryland has a good conflict of interest statute on the books. The state ethics commission should enforce it."
Public Citizen requests that the commission investigate these allegations and impose appropriate sanctions if it determines that Hogan's conduct violates the law. Public Citizen also asks the commission to ensure that any future efforts to avoid conflicts of interest by Hogan, such as establishing a blind trust, be done in a proper and effective manner.
The complaint is available here.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
'We Cannot Be Silent': Tlaib Leads 19 US Lawmakers Demanding Israel Stop Starving Gaza
"This current blockade is starving Palestinian civilians in violation of international law, and the militarization of food will not help."
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As the death toll from Israel's forced starvation of Palestinians continues to rise amid the ongoing U.S.-backed genocidal assault and siege of the Gaza Strip, Rep. Rashida Tlaib on Monday led 18 congressional colleagues in a letter demanding that the Trump administration push for an immediate cease-fire, an end to the Israeli blockade, and a resumption of humanitarian aid into the embattled coastal enclave.
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Gaza officials have reported that hundreds of Palestinians—including at least 66 children—have died in Gaza from malnutrition and lack of medicine since Israel ratcheted up its siege in early March. Earlier this month, the United Nations Children's Fund warned that childhood malnutrition was "rising at an alarming rate," with 5,119 children under the age of 5 treated for the life-threatening condition in May alone. Of those treated children, 636 were diagnosed with severe acute malnutrition, the most lethal form of the condition.
Meanwhile, nearly 600 Palestinians have been killed and more than 4,000 others have been injured as Israeli occupation forces carry out near-daily massacres of desperate people seeking food and other humanitarian aid at or near distribution sites run by the U.S.-backed Gaza Humanitarian Foundation (GHF). Israel Defense Forces officers and troops have said that they were ordered to shoot and shell aid-seeking Gazans, even when they posed no threat.
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"We cannot be silent. This current blockade is starving Palestinian civilians in violation of international law, and the militarization of food will not help," the lawmakers added. "We demand an immediate end to the blockade, an immediate resumption of unfettered humanitarian aid entry into Gaza, the restoration of U.S. funding to UNRWA, and an immediate and lasting cease-fire. Any other path forward is a path toward greater hunger, famine, and death."
Since launching the retaliatory annihilation of Gaza in response to the Hamas-led October 7, 2023 attack on Israel, Israeli forces have killed at least 56,531 Palestinians and wounded more than 133,600 others, according to the Gaza Health Ministry, which also says over 14,000 people are missing and presumed dead and buried beneath rubble. Upward of 2 million Gazans have been forcibly displaced, often more than once.
On Sunday, U.S. President Donald Trump reiterated a call for a cease-fire deal that would secure the release of the remaining 22 living Israeli and other hostages held by Hamas.
In addition to Tlaib, the letter to Rubio was signed by Sen. Bernie Sanders (I-Vt.) and Democratic Reps. Greg Casar (Texas), Jesús "Chuy" García (Ill.), Al Green (Texas), Jonathan Jackson (Ill.), Pramila Jayapal (Wash.), Henry "Hank"Johnson (Ga.), Summer Lee (Pa.), Jim McGovern (Mass.), Alexandria Ocasio-Cortez (N.Y.), Ilhan Omar (Minn.), Chellie Pingree (Maine), Mark Pocan (Wisc.), Ayanna Pressley (Mass.), Delia Ramirez (Ill.), Paul Tonko (N.Y.), Nydia Velázquez (N.Y.), and Bonnie Watson Coleman (N.J.).
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Progressives on the advisory board for the project include economist Justin Wolfers and former Roosevelt Institute president Felicia Wong, but antitrust expert Hal Singer said any policy agenda aimed at securing a Democratic victory in the 2028 election "needs way more progressives."
As The New York Times noted in its reporting on Project 2029, the panel is being convened amid extensive infighting regarding how the Democratic Party can win back control of the White House and Congress.
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Progressives have called on party leaders to back Mamdani, pointing to his popularity with young voters, and accept that his clear message about making life more affordable for working families resonated with Democratic constituents.
But speaking to the Times, Democratic pollster Celinda Lake exemplified how many of the party's strategists have insisted that candidates only need to package their messages to voters differently—not change the messages to match the political priorities of Mamdani and other popular progressives like Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.).
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As national security adviser to President Joe Biden, Sullivan played a key role in the administration's defense and funding of Israel's assault on Gaza, which international experts and human rights groups have said is a genocide.
"Jake Sullivan's been a critical decision-maker in every Democratic catastrophe of the last decade: Hillary Clinton's 2016 campaign, the withdrawal from Afghanistan, the Israel/Gaza War, and the 2024 Joe Biden campaign," said Nick Field of the Pennsylvania Capital-Star. "Why is he still in the inner circle?"
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Sen. Rick Scott has introduced an amendment to the Republican budget bill that would slash another $313 million from Medicaid and kick off millions more recipients.
The latest analysis by the Congressional Budget Office (CBO) found that 17 million people could lose their health insurance by 2034 as the result of the bill as it already exists.
According to a preliminary estimate by the Democrats on the Joint Congressional Economic Committee, that number could balloon up to anywhere from 20 to 29 million if Scott's (R-Fla.) amendment passes.
The amendment will be voted on as part of the Senate's vote-a-rama, which is expected to run deep into Monday night and possibly into Tuesday morning.
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The existing GOP reconciliation package contains onerous new restrictions, including new work requirements and administrative hurdles, that will make it harder for poor recipients to claim Medicaid benefits.
Scott's amendment targets funding for the program by ending the federal government's 90% cost sharing for recipients who join Medicaid after 2030. Those who enroll after that date would have their medical care reimbursed by the federal government at a lower rate of 50%.
The Affordable Care Act (ACA) introduced the increased rate in 2010 to incentivize states to expand Medicaid, allowing more people to be covered.
Scott has said his program would "grandfather" in those who had already been receiving the 90% reimbursement rate.
However, Medicaid is run through the states, which will have to spend more money to keep covering those who need the program after 2030.
The Center on Budget and Policy Priorities estimated that this provision "would shift an additional $93 billion in federal Medicaid funding to states from 2031 through 2034 on top of the cuts already in the Senate bill."
This will almost certainly result in states having to cut back, by introducing their stricter requirements or paperwork hurdles.
Additionally, nine states have "trigger laws" that are set to end the program immediately if the federal matching rate is reduced: Arizona, Arkansas, Illinois, Indiana, Montana, New Hampshire, North Carolina, Utah, and Virginia.
The Joint Congressional Economic Committee estimated Tuesday that around 2.5 million more people will lose their insurance as a result of those cuts.
If all the states with statutory Medicaid expansion ended it as a result of Scott's cuts, as many as 12.5 million could lose their insurance. Combined with the rest of the bill, that's potentially 29 million people losing health insurance coverage, the committee said.
A chart shows how many people are estimated to lose healthcare coverage with each possible version of the GOP bill.(Chart: Congressional Joint Economic Committee Democrats)
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Sen. Jim Justice (R-W.V.) also said he'd "have a hard time" voting yes on the bill if Scott's amendment passed. His state of West Virginia has the second-highest rate of people using federal medical assistance of any state in the country, behind only Mississippi.
Critics have called out Scott for lying to justify this line of cuts. In a recent Fox News appearance, Scott claimed that his new restrictions were necessary to stop Democrats who want to "give illegal aliens Medicaid benefits," even though they are not eligible for the program.
Scott's proposal has also brought renewed scrutiny to his past as a healthcare executive.
"Ironically enough, some of the claims against Scott's old hospital company revolved around exploiting Medicaid, and billing for services that patients didn't need," wrote Andrew Perez in Rolling Stone Monday.
In 2000, Scott's hospital company, HCA, was forced to pay $840 million in fines, penalties, and damages to resolve claims of unlawful billing practices in what was called the "largest government fraud settlement ever." Among the charges were that during Scott's tenure, the company overbilled Medicare and Medicaid by pretending patients were sicker than they actually were.
The company entered an additional settlement in 2003, paying out another $631 million to compensate for the money stolen from these and other government programs.
Scott himself was never criminally charged, but resigned in 1997 as the Department of Justice began to probe his company's activities. Despite the scandal, Scott not only became a U.S. senator, but is the wealthiest man in Congress, with a net worth of more than half a billion dollars.
The irony of this was not lost on Perez, who wrote: "A few decades later, Scott is now trying to extract a huge amount of money from state Medicaid funds to help finance Trump's latest round of tax cuts for the rich."
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