'It's underway': Probe begins into $24K mailer deal at Maricopa County Democratic Party

The interim director of the Maricopa County Democratic Party said Tuesday he has launched an investigation into the party’s handling of a $24,000 business deal that has led to accusations of cronyism, altered postal records and cover-ups.

“It is underway,” Jon Ryder said of a probe into the agreement that appeared to be intended to benefit the former executive director’s fiancé.

The party spent $24,480 for a mass mail piece before the November 2022 election. But the mailer never reached the mailboxes of the 118,000 Democrats for whom it was intended, and the money was only refunded months later, after the party’s attorneys demanded repayment.

On Monday, Ne’lexia Galloway resigned her post as party executive director without any public comment.

Pressure ramps up on party chair after treasurer's probe

Meanwhile, pressure mounted on party Chair Nancy Schriber, as the former party treasurer released a blistering critique of Schriber’s actions in the wake of an internal investigation of the agreement.

The $24,480 deal was assigned to Agave Strategy to produce, sort and mail a campaign piece featuring the Democratic candidates on the 2022 ballot. But a principal of the political consulting firm said Galloway instructed the firm to give the business to Galloway’s partner, Bruce Franks Jr., and to keep the arrangement quiet. Dawn Penich-Thacker portrayed her firm as an unwitting pass-through to get business to Franks.

Penich-Thacker on Monday said the firm was unaware of the party’s conflict-of-interest policy, which required board approval before any expenditure could be made that would benefit a party officer’s family or partner. The policy was created after Galloway repeatedly sent party business to Franks, who ran Blaque Printing EnterPrise.

Heather Mrowiec, who as party treasurer led her own investigation into the mailer issue late last year, said Schriber should step down because she believes the chair has lost the trust of many party activists. She described Schriber as being overly protective of Galloway to the point she wouldn’t accept any suggestion the executive director acted improperly.

“After we finished the investigation, she decided that despite the evidence shown to her, she believed it was a legitimate business transaction that the vendor wasn’t unable to fulfill,” Mrowiec said of Schriber.

Mrowiec issued a series of questions she believes Schriber should answer, such as why Galloway received a $3,000 bonus a week after Schriber was made aware of the questionable deal, and why Schriber didn't inform party legislative district chairs the promised mailer never materialized until January, when the internal investigation's findings were known.

"Why should we trust the judgment of the person who purposefully ignored all the signs of fraud for almost a year and maligned the people who fought so long to expose the wrongdoing?" Mrowiec wrote in a document shared with party members and provided to The Republic.

The party received a refund of its $24,480 investment in January, according to state campaign finance records.

'Suckerpunched': Texts, screenshots provide crucial details

Schriber did not respond to a request for an interview. But late Tuesday afternoon, she sent a lengthy email to the party's executive board, apologizing for not heeding the concerns of party members and explaining that until Monday, she had no concrete proof pointing to a cover-up by Galloway and Franks.

On Monday, she had received texts and screenshots from Agave Strategy that she said showed a concerted effort to hide Franks' involvement and Galloway's insistence that his role be kept quiet.

"I was absolutely shocked to learn this information. The words 'betrayed', 'deceived' and 'suckerpunched' come to mind," Schriber wrote.

She added she and Ryder are working with party attorneys to determine next steps.

"Clearly, wherever there are credible allegations of fraud or other wrongdoing, MCDP will work with our attorneys to refer this matter to the proper authorities, including the Arizona Attorney General's Office and the United States Postal Inspectors," Schriber wrote.

New interim director on board, for now

Ryder said he was asked by Schriber, along with four former party chairmen, to step in as interim executive director. He had previously served in the post, leaving in 2017.

Ryder said he is talking to the party’s attorneys and has yet to decide if they will be tasked with the investigation or if they will outsource the work. But, he said, the intent is to move quickly and transparently.

“That’s important, to help restore some confidence,” Ryder said.

If the investigation turns up any wrongdoing, he said, the matter will be referred to the proper authorities.

Mrowiec’s internal look has produced evidence that suggests postal records were falsified in an attempt to make it appear the agreement was fulfilled. She said she would be happy to share her findings with Ryder, if he requests them.

Morgan Dick, who was communications director for the state Democratic Party late last year, said the party learned of the unmailed campaign piece when county officials sought guidance. She told them to seek a refund.

Dick, now executive director of the state party, said state party officials are not getting involved in the matter but support the county party's investigation.

While both the county party and the state party recruit and support candidates, the county Democratic Party traditionally has brought a more local focus to those efforts, particularly for local, county and legislative seats.

Reach the reporter at maryjo.pitzl@arizonarepublic.com or at 602-228-7566 and follow her on Twitter @maryjpitzl.

This article originally appeared on Arizona Republic: Probe launched into Maricopa County Democratic Party mailer deal