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Mosby’s lawyer lays out his defense strategy

BALTIMORE — Defense attorneys for Baltimore State’s Attorney Marilyn Mosby held a press conference Monday afternoon to respond to a federal indictment that was handed down just days ago.

Mosby was charged Jan. 13 with perjury and misrepresentation on mortgage applications, relating to the purchase of two vacation homes in Florida.

Attorney A. Scott Bolden is representing Mosby. He claims the case is based on misinformation and called the investigation a politically motivated witch hunt.

Prosecutors allege Mosby lied twice in 2020 when she withdrew a total of $90,000 from her city deferred compensation plan.

At the time, the federal government only allowed applicants to make such withdrawals if they had experienced certain financial hardship due to COVID-19.

Prosecutors say Mosby falsely claimed COVID-related financial hardship in order to qualify, despite receiving her full gross salary of nearly a quarter million dollars, which breaks down to 9,183.54 $ every two weeks.

In fact, billing documents show that Mosby received a raise of more than $9,000 from 2019 to 2020.

Bolden defended Mosby’s actions on Monday, suggesting his private businesses have been negatively affected by the pandemic.

This explanation is a reversal of what Mosby and his attorneys said last year, when the Baltimore City Inspector General released a report on three of his private companies; Mahogany Elite Enterprises, LLC; Mahogany Elite Voyage; and Mahogany Elite Consulting.

SEE ALSO: City Watch Dog Defends Report Criticizing Marilyn Mosby, Despite Lawyers’ Requests for Review

The inspector general found no evidence of income or business-related income, but found $5,000 of related expenses reported on Mosby’s personal tax return in 2019. Another major revelation from the inspector general was was Mosby’s initial failure to report the companies on a 2019 state financial disclosure form.

His lawyers at the time countered by saying “The companies our client created in 2019 are not operational. The companies are all new and not yet doing business.” which contradicts Bolden’s claims on Monday.

Weeks after the Inspector General’s report was released, WMAR-2 reported that Mosby was under federal investigation along with her husband, City Council Speaker Nick Mosby, who so far has not been charged with no crime.

At the time, prosecutors issued multiple subpoenas to Mosby’s associates for any information relating to their activities and campaigns dating back to January 2014.

RELATED: Federal prosecutors are investigating Marilyn and Nick Mosby

The charging documents that resulted from that investigation also accuse Ms Mosby of making false statements on mortgage applications for two Florida homes she purchased for a total of $918,900.

In those requests, Mosby was required to disclose whether or not it had been delinquent or defaulted on federal debt or other loans and mortgages.

She reportedly denied owing anything, when in fact a $45,022 lien had been placed on her and her husband’s properties as a result of unpaid taxes between 2014 and 2015. Bolden claims she knew nothing of the lien at the time, although billing documents show the IRS sent mailings in November 2015 and 2016 to Mosby’s home notifying him of the debts. From 2017 to 2019, the IRS sent three more letters to Mosby’s home informing him that his tax returns for each of those years would be withheld and instead go toward his unpaid debts. In March 2020, the lien was placed by the IRS.

Additionally, Mosby reportedly signed an agreement that would have made one of the Florida homes his second home, giving him sole control of the property, including for short-term rentals.

The feds say it was illegal because she had already signed papers with a property management company giving them control over the rental of the property.

If convicted, Mosby faces a maximum sentence of 70 years behind bars.