Baltimore Sun

Hogan: ‘I will stand with you’

Ex-top aide McGrath alleges documents back claim that governor supported his controvers­ial payout

- By Pamela Wood

Roy McGrath, the former chief of staff to Gov. Larry Hogan facing state and federal criminal charges, says the governor approved his controvers­ial payout from a state agency — and claims to have the documents to prove it.

McGrath resigned from his job as Hogan’s top aide after just 11 weeks in 2020, following reporting by The Baltimore Sun that revealed he’d negotiated a six-figure “severance” deal from the state agency where he’d been working.

Criminal and legislativ­e investigat­ions followed, and last month he was charged on criminal counts that include misappropr­iation, misconduct in office, wire fraud and wiretappin­g for allegedly secretly recording conversati­ons with the governor and other top officials.

Prosecutor­s allege that McGrath misled officials at his prior state agency, the Maryland Environmen­tal Service, to get them to approve the severance deal by implying that the governor supported it.

McGrath

State lawmakers called on McGrath to give back the money and passed a law making reforms at the environmen­tal service.

McGrath provided screenshot­s Thursday of messages from Hogan, including one where the Republican governor wrote: “I know you did nothing wrong. I know it is unfair. I will stand with you.”

McGrath said the messages were sent between Aug. 13, when the first Sun story about the severance published, and Aug. 17 when McGrath resigned.

A spokesman for the governor verified Hogan sent the message to McGrath but said it was before Hogan knew the full details of how McGrath worked out the severance deal.

“At that point, the governor was reserving judgment until all the facts came to light, and that fact-finding is what led to the resignatio­n,”

Hogan spokesman Mike Ricci said in a statement.

The messages indicate the governor was concerned about the optics of the severance payment and whether Democrats would try to capitalize on it like “Bridgegate,” a 2013 scandal when aides to then-Gov. Chris Christie of New Jersey were accused of closing lanes of a key bridge to create traffic backups for political retributio­n.

Hogan suggested a strategy meeting with senior advisor Ron Gunzburger, chief counsel Michael Pedone, chief legislativ­e officer Keiffer J. Mitchell Jr. and Ricci.

As McGrath left the job of executive director of the environmen­tal service to head to the State House, he was paid the equivalent of one year’s salary of about $233,650 in severance, plus more than $5,000 in tuition benefits. He also was paid more than $55,000 in expense reimbursem­ents.

Hogan has maintained publicly that he did not know the details of McGrath’s severance deal and did not endorse it.

Ten days after McGrath resigned, Hogan said during a news conference: “I knew nothing about the details of what his discussion­s were with his current employer or the board members of MES. I mean, I didn’t discuss it or approve it or know anything about the amounts of it or anything.”

Hogan said that when he offered McGrath the chief of staff job, McGrath said the move would be “a big cut in pay.” Hogan also said McGrath told him he had to “figure out” details of an expected bonus and other issues with the environmen­tal service before accepting the position.

On Thursday, McGrath also provided an image of an “employment agreement” that he drafted at the time he was offered the job heading Hogan’s staff and said he presented it to the governor. The document, which is not on letterhead, is addressed “TO: Governor Hogan” but does not say who it is from. It lists McGrath’s new salary and “Other Compensati­on: Severance package from MES.” A box marked “approved” is checked off.

Ricci, the governor’s spokesman, said the purported employment agreement is “a complete fabricatio­n, and bears no resemblanc­e to the memos or documents submitted to the governor.”

McGrath’s documents were first reported by The Washington Post.

McGrath wrote in an email to The Sun that he’s sharing the documents now in hopes of getting “fairer, more objective treatment of my situation going forward.” He said he was previously “not in a position” to share all of the facts of his case.

“For more than a year, I have honorably respected a hiring agreement that my friend, Larry Hogan, asked me to keep confidenti­al between the two of us,” McGrath wrote.

Roy McGrath said the governor sent him these messages after The Baltimore Sun reported on his six-figure severance from another state agency.

“There was nothing inappropri­ate about this arrangemen­t. He wanted me for the job, and this was what was necessary for me to take on a role I didn’t seek or want.”

The matter of whether Hogan knew about and endorsed McGrath’s severance payment from the environmen­tal service is a key part of prosecutor­s’ allegation­s against McGrath. The federal indictment alleges that McGrath got the environmen­tal service to approve the payout “based on false and misleading informatio­n.”

McGrath ran a “scheme of artifice to defraud” in which he “falsely represente­d that the Governor knew” about the severance payment, according to the indictment.

Doug Mayer, a political strategist and adviser to Hogan, rebutted McGrath’s claims that the governor fully supported the severance deal. Mayer said he spoke with McGrath about the matter in the days between The Sun’s first report and McGrath’s resignatio­n.

“I gave him multiple opportunit­ies to confirm what the governor knew and when, and he was never willing and never did confirm that the governor confirmed any of his severance or payouts,” Mayer said.

He added: “You’d ask him directly and he’d dance around it.”

Mayer said he recounted those conversati­ons to investigat­ors, and that some of those discussion­s are among the conversati­ons that prosecutor­s say McGrath secretly recorded.

Mayer said the “employment agreement” that McGrath is now proffering is “laughable and quite honestly pathetic.”

Mayer questioned why, if the document and the text messages exonerated McGrath, he hadn’t revealed them before.

“At the end of the day,” Mayer said, “this is a sad guy flailing about and continuing what is unfortunat­ely a life of lies that has fallen down around him.”

Until now, McGrath has offered few details about how he negotiated the severance package and what Hogan may have known about it. When he was questioned during a legislativ­e investigat­ion last December, he invoked his Fifth Amendment right against self-incriminat­ion more than 170 times.

McGrath, who moved to Florida, is awaiting trials in both federal and state court in Maryland. His next scheduled court appearance is a status conference in Anne Arundel County Circuit Court in December.

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 ?? PHOTOS COURTESY OF ROY MCGRATH ?? Gov. Larry Hogan’s former chief of staff, Roy McGrath, provided this photo showing what he said is an employment agreement that the governor signed off on. The governor’s office says the document is fabricated.
PHOTOS COURTESY OF ROY MCGRATH Gov. Larry Hogan’s former chief of staff, Roy McGrath, provided this photo showing what he said is an employment agreement that the governor signed off on. The governor’s office says the document is fabricated.
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