Pugh's statement and formal resignation letter were read by attorney Steve Silverman at a news conference outside his Baltimore office. "And I'm going to run the city like the mayor", Young said from Detroit, where's he's attending a conference about economic development before his return to Baltimore over the weekend.
In recent weeks, federal agents raided her two homes, her City Hall office and other locations. On April 1, her office had announced that she would be taking a leave of absence to recover from pneumonia.
Pugh, a Democrat, had been under mounting pressure to resign following a scandal in which she secured lucrative deals selling her Healthy Holly children's books to the University of Maryland Medical System when she served on their board of directors. She becomes the second Baltimore mayor in a decade to quit in connection with a criminal investigation. She was hospitalized for five days in late March. Acting Mayor Bernard "Jack" Young, a longtime member of the City Council, automatically became Baltimore's 51st mayor. He has said that he does not want the position on a permanent basis.
At issue is the roughly $800,000 Pugh received through the years from a hospital network, insurance carriers that did business with the city and a financier for bulk copies of her "Healthy Holly" children's books.More news: Warren Buffett's Berkshire Hathaway invests in Amazon for the first time
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With the intensification of her resignation for a couple of days now, she made no reaction and continued staying in her three-story home where she had been for almost one month. Some of the biggest benefactors include the University of Maryland Medical System.
The payouts for the books came at a time when the company was seeking to provide coverage to city employees. The next year, Baltimore's spending board, which is controlled by the mayor, awarded a $48 million contract to the Kaiser Foundation Health Plan of the Mid-Atlantic States Inc.
Pugh had been defiant in resisting calls for her resignation.
Councilman Brandon Scott released a statement saying "Today is a day of relief and accountability for Baltimore". The UMMS deal alone was for 100,000 books.
The mayor did not appear at the event, and her attorney did not take questions. Governor Larry Hogan alongside the state's Democratic Party's chairwoman believed Pugh's decision was the right one. "Mayor Pugh has lost the public trust". Pugh stepped down from the UMMS board on March 18 after facing backlash over neglecting to fully disclose this deal.