Hobbs’ Tourism Chief Ensnared in Corruption Scandal

By Matthew Holloway |

In a significant political development, Arizona Republicans have raised serious concerns regarding Governor Katie Hobbs’ approval of a $700,000 redesign of the state logo by Urias Communications. This firm is owned by the brother of Lisa Urias, the Office of Tourism Director. In response to these allegations, Hobbs’ office announced Urias’ resignation early Friday, with the governor stating, “This appearance of conflict is not acceptable.”

State Senator Jake Hoffman detailed the accusations in a lengthy post on social media, referencing a report from Arizona Agenda. The outlet revealed the Arizona Office of Tourism allocated $700,000 from COVID-19 federal relief funds for “57 in-person and digital listening sessions across the state.” It also noted $27,500 was directed to Urias’ brother, who contributed to the logo’s design through a separate graphic design firm.

Hoffman emphasized, “Of all the artists in the state available to draft that logo, the contract just happened to go to one who has close ties to the Office of Tourism Director Lisa Urias—her brother.”

Further accusations ensued, with Hoffman asserting that Hobbs’ actions demonstrate a misuse of office, alleging, “Katie Hobbs continues to exploit her office, break the law, and take advantage of the people of Arizona. This is what it looks like when Democrats are in control of your government.”

Senator John Kavanagh characterized the situation as “clearly an ethical violation,” while questioning the potential legality of the actions involved. Arizona Agenda’s report indicated that Urias’ original mandate included rebranding Arizona to incorporate elements of Native American cultures. Although Lisa Urias purportedly does not partake in the daily operations of Urias Communications, critics argue she benefits financially from the state contract.

The investigation revealed that her firm secured a $250,000 contract from the Arizona Department of Education after her appointment as director. This led Hoffman to claim that Tom Horne, the Superintendent of Public Instruction, is implicated as well. Horne contested these claims, asserting that the Arizona Department of Education only paid $15,000 on an expiring contract.

Hoffman challenged Horne’s assertions, calling for evidence to support his claim. Horne subsequently indicated that documentation verifying his statement was provided to Hoffman’s office. The exchange intensified with Horne posting evidence of the alleged transactions on social media.

In light of the unfolding scenario, Senator Teresa Martinez called for an investigation into the alleged misconduct. Within 24 hours of this request, Urias announced her resignation, citing the Senate’s reluctance to confirm her as a director amidst the ongoing scrutiny. 

Urias offered a statement upon her resignation, remarking, “In light of the Senate Confirmation members making it clear they will not confirm me as Tourism Director—despite the recent allegations being untrue and unfounded—I have tendered my resignation to the Governor.”

Matthew Holloway is a reporter for AZ Free News. Follow him for the latest stories or share tips via email at Matthew@azfreenews.com.