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While Pugh Remains On Leave, Investigations Expand Into Her 'Healthy Holly' Book Deals

BALTIMORE (WJZ) -- Mayor Catherine Pugh continues her leave of absence Friday, but a number of agencies have already started their probes into her Healthy Holly business deals.

Investigations are swirling from Annapolis to Towson to City Hall into Mayor Pugh's business deals.

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Some are stopping short of calling for her to resign.

WJZ has confirmed that Ariel Investments paid Pugh $3,600 for 400 "Healthy Holly" books to distribute at a 2013 conference in which she spoke.

In September of 2017, at a Black Corporate Directors Conference sponsored by Ariel, paid for Pugh to attend the California conference.

Five months later, Baltimore's Board of Estimates approved a $40 million contract with Ariel.

The city Board of Ethics has started its investigation of Pugh's business deals and whether they affected city business.

Officials are reviewing deals with at least three businesses: Carefirst, Kaiser Permanente and Ariel Investments

The nonprofit, Associated Black Charities, collected payments from Carefirst and Ariel among others, and passed on about $80,000 to Pugh.

Kaiser, meanwhile, paid Pugh directly for her 'Healthy Holly' children's books for three years.

TIMELINE: Mayor Pugh, Healthy Holly, And Her Leave Of Absence

Years later Pugh and the Board of Estimates approved city contracts for the companies

"In this case, it's limited to the period when she was mayor," said Avery Aisenstark, with the city's ethics board.

The scope of the state prosecutor's investigation is more broad as the governor requested an investigation be opened Monday.

The Maryland Insurance Commission told WJZ Wednesday: they were reviewing deals by Carefirst, Kaiser, and The Maryland Auto Insurance Fund.

On Friday they told WJZ they will actually "expand the number of reviews and will not be releasing" information until it concludes.

"If we find a carrier did engage in activity that violates a law we'll have to make that determination at that time," said Al Redmer, the Maryland Insurance Commissioner.

Here's their full statement:

There have been numerous reports in the press regarding insurance entities that have directly or indirectly been involved in making payments to entities for Healthy Holly, LLC books.

We are cooperating with other investigations being done by the state and city related to the University of Maryland Medical System board transactions. The Maryland Insurance Administration ("MIA") made an initial determination to conduct a targeted market conduct examination of three of those entities. The MIA has since made the decision to expand the number of reviews and will not be releasing information on those reviews until they conclude.

From this point, the MIA will not be commenting on these ongoing investigations. As with all other investigations, if the MIA determines that there have been violations of the insurance laws of Maryland, the findings will be included in any orders that are issued. As is the MIA's practice, the orders will be made public.

Meanwhile, Pugh remains sidelined on a leave of absence. Council President Jack Young is acting mayor.

Congressman Elijah Cummings, a friend of Pugh's who donated to her campaign and endorsed her two years ago when she ran for mayor, alluded to Pugh after a rally at City Hall Thursday.

"I know that the mayor is going through some difficulties, but I have the utmost confidence in Jack Young," Cummings said. "And, I think all of us need to rally around him and bring as many resources to the city."

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