Investigator rules against Palin in ethics probe

Report says governor secured unwarranted benefits through trust

Posted: Wednesday, July 22, 2009

ANCHORAGE - An independent investigator has found evidence that Gov. Sarah Palin may have violated ethics laws by trading on her position as she sought money for lawyer fees, in the latest legal distraction for the former vice presidential candidate as she prepares to leave office this week.

The report obtained by The Associated Press says Palin is securing unwarranted benefits and receiving improper gifts through the Alaska Fund Trust, set up by supporters.

An investigator for the state Personnel Board says in his July 14 report that there is probable cause to believe Palin used or attempted to use her official position for personal gain because she authorized the creation of the trust as her legal defense fund.

The practical effect of the ruling on Palin will be more financial than anything else. The report recommends that Palin refuse to accept payment from the defense fund, and that the complaint be resolved without a formal hearing before the board. That allows her to resolve the issue without a formal ethics reprimand.

John Coale, a Washington lawyer who helped set up the fund, called the probable cause finding "crazy."

If upheld, "There's no way to defend yourself" as governor, Coale said. "Anybody can keep filing ethics complaints and drive someone out of office even if you're a nut."

Coale said that unlike other states, Alaska's governor has no legal counsel's office to defend the governor from allegations brought against the governor in her official capacity.

Palin posted an entry on Twitter in which she said the "matter is still pending," a statement echoed by her lawyer.

The fund aims to help Palin pay off debts stemming from multiple ethics complaints against her, most of which have been dismissed. Palin says she owes more than $500,000 in legal fees, and she cited the mounting toll of the ethics probes as one of the reasons she is leaving office come Sunday.

Kristan Cole, the fund's trustee, said organizers have frozen the fund pending the personnel board's review. Politicians are routinely allowed to have such funds to pay off legal bills, but quirks in Alaska law can present ethics issues.

The investigator, Thomas Daniel, sided with Palin in her frustration with having to defend herself against a barrage of ethics complaints. He suggested that Alaska lawmakers may need to create a law that reimburses public officials for legal expenses to defend complaints that end up being unfounded.

Palin's friends and supporters created the Alaska Fund Trust in April, limiting donations to $150 per person. Organizers declined to say how much it has raised, and had hoped to raise about $500,000. A Webathon last month brought in about $130,000 in pledges.

In his report, Daniel said his interpretation of the ethics act is consistent with common sense.

An ordinary citizen facing legal charges is not likely to be able to generate donations to a legal defense fund, he wrote. "In contrast, Governor Palin is able to generate donations because of the fact that she is a public official and a public figure. Were it not for the fact that she is governor and a national political figure, it is unlikely that many citizens would donate money to her legal defense fund."

The ethics complaint was filed by Eagle River resident Kim Chatman shortly after the fund was created, alleging Palin was misusing her official position and accepting improper gifts.

"It's an absolute shame that she would continue to keep the Alaska Fund Trust Web site up and running," Chatman told the AP.

At least 19 ethics complaints have been filed against Palin, most of them after she was named the running mate for GOP presidential candidate John McCain. Most of those have been dismissed, and Palin's office usually sends a news release with the announcement.

The multiple ethics complaints include an investigation by state lawmakers over Palin's firing of her public safety commissioner in the so-called Troopergate scandal.



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