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Palin defense fund may violate ethics laws, investigator says

Governor used her office to get donations to pay for legal fees, report says

THE ASSOCIATED PRESS

Published: July 22, 2009

ANCHORAGE, Alaska - An independent investigator has found evidence that Gov. Sarah Palin of Alaska may have violated ethics laws by trading on her position in requesting money for legal 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 that Palin is securing unwarranted benefits and receiving improper gifts through the Alaska Fund Trust, set up by supporters.

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

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 that she is leaving office.

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 legislators may need to create a law that reimburses public officials for legal expenses to defend complaints that end up being unfounded.

Palin posted an entry on Twitter, in which she said that the "matter is still pending."

"There is no final report. The Investigator is still confidentially reviewing this matter. It appears suspect that in the final days of the Governor's term, someone would again violate the law and announce a supposed conclusion before it is reached," her spokeswoman, Meghan Stapleton, said in an e-mail to the AP.

But Daniel said that his report is final.

Palin's friends and supporters created the Alaska Fund Trust in April, limiting donations to $150 a 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 that 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 Kim Chatman, an Eagle River resident, shortly after the fund was created, alleging that 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 Republican 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 legislators over Palin's firing of her public-safety commissioner in the so-called Troopergate scandal.

John Coale, a Washington lawyer who helped set up the fund, called the probable-cause finding "crazy," adding that if upheld, it would mean that no governors could ever defend themselves against frivolous ethics complaints.

"If this complaint is true, 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."