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Geoffrey Dunn

Geoffrey Dunn

Posted: June 24, 2010 06:37 PM

Palin Guilty of Major Ethics Act Violation: Must Return $386,000 in Contributions

What's Your Reaction:

Nearly a year after she quit her governorship of Alaska, Sarah Palin was found guilty today of another breach of the Alaska Executive Branch Ethics Act involving her so-called Alaska Fund Trust (AFT), which she established as a private "legal defense fund" while governor.

Timothy Petumenos, independent counsel for the Alaska Personnel Board (and ironically, the same independent counsel who issued the Troopergate findings nearly two years ago while Palin was the GOP vice-presidential nominee), presented the state's Findings, Consent Decree and Settlement Agreement this afternoon from the perfectly named Adventure Room of the Captain Cook Hotel in downtown Anchorage.

In what is an extremely detailed finding, Petumenos ruled that even though Palin assigned the research of forming the fund to her former spokesperson Meghan Stapleton and even though Palin relied on extensive outside legal counsel, that "the Trust itself, as ultimately conceived, violates the Ethics Act."

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The finding is a stinging rebuke to Palin, who must now return more than $386,000 in contributions to the AFT.

It also forces her longtime political crony Kirstan Cole to be removed from serving as Trustee of the fund.

Perhaps most significantly, Petumenos demanded that "all donors to the Trust, whether they donated before or after the resignation, as promised in the supporting website information, must be publicly disclosed." Costs of more than $80,000 incurred during Palin's governorship can be defrayed only by contributions made after her resignation. Only $33,546 was contributed to the fund following her resignation.

In April of 2009, while still governor, Palin established the AFT as a means of paying what she alleged were more than $500,000 in legal bills owed to her Anchorage-based attorney Thomas Van Flein. According to its official website:

The Alaska Fund Trust is the official legal fund created to defend Sarah Palin from an onslaught of political attacks launched against her, her Family, and colleagues (sic).

Almost immediately afterwards, Eagle River resident Kim Chatman filed an Ethics Act complaint charging Palin with misusing her official position for political gain and receiving improper gifts.

The fund had the appearance of Palin's formal political action committee, SarahPAC, which was raising funds to fuel Palin's national political ambitions. SarahPAC operates under strict federal guidelines for income and expenditure disclosures. The Alaska Trust Fund, however, is actually a private trust, with no state or federal government oversight.

According to of the Alaska Department of Law's Marjorie Vandor, "There is no executive branch state agency with jurisdiction over private trusts nor does our office handle the administration of private trusts." As such, Palin's AFT is little more than a slush fund with zero public transparency or accountability.

Last July, independent counsel for the Alaska Personnel Board Tom Daniel issued a preliminary "probable cause" finding that:

In light of the evidence that the governor expressly authorized the creation of the trust and the fact the trust website quite openly uses the governor's position to solicit donations, there is probable cause to believe that Governor Palin used, or attempted to use, her official position for personal gain in violation of Alaska statute.

Daniel also found "payment of the governor's legal fees by the Alaska Fund Trust will violate the Ethics Act prohibition against a public officer accepting gifts intended to influence performance of official duties."

He particularly cited the troubling political relationship between Palin and Cole, whom Palin had appointed to several state boards in Alaska, including the Agriculture and Conservation Board and the Royalty Oil and Gas Advisory Board. Cole also serves She's also on the board of the controversial state-owned Creamery Corporation (Matanuska Maid). Cole's previous claims that "the governor is not, was not and has not been involved in this trust" simply did not pass the straight-face test.

Daniel recused himself from continuing with the case because his firm has done work for Democrats; he did not want the findings shrouded in controversy. Apparently Petumenos took over the case sometime in January of this year.

Andree Mcleod, the Anchorage-based government watchdog who has filed five Ethics Act complaints against Palin and who was recently transferred "power of attorney" on the AFT complaint, issued a statement today:

"Sarah Palin continues to disappoint. Today's finding makes it obvious that she's out for herself. I've spent more than two years trying to shed light on many of Palin's wrongdoings while governor. Her typical response: to vilify and deride Alaskans who only wanted to hold her accountable for her misconduct; this should give people pause."

Immediately following the ruling, Palin posted a new website sticking out a hand for the Sarah Palin Legal Defense Fund.

Palin's attorney Van Flein of Anchorage, who was to have been the recipient of the ATF's bounty, had foreshadowed today's ruling with an odd posting last night on Palin's Facebook page. "There will be times when Sarah Palin will have to take one for the team," Van Flein wrote, "in order to continue on with her message to the country and simply resolve matters without having to incur crushing personal debt."

McLeod was not buying into any of Van Flein's excuses:

"Never has a governor lowered the bar as low as Palin has when she breached the public's trust over and over again. Her arrogance, sense of entitlement and recklessness while doing the people's business sets a very bad precedent.


"For her to be portrayed as a role model by the media is an absolute travesty. The more people find out about Palin...the more they learn that a 'servant's heart' does not beat within her."

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Award-winning writer and filmmaker Geoffrey Dunn's book The Lies of Sarah Palin: The Untold Story Behind Her Relentless Quest for Power will be published by St. Martin's Press.

 
 
 
Nearly a year after she quit her governorship of Alaska, Sarah Palin was found guilty today of another breach of the Alaska Executive Branch Ethics Act involving her so-called Alaska Fund Trust (AFT),...
Nearly a year after she quit her governorship of Alaska, Sarah Palin was found guilty today of another breach of the Alaska Executive Branch Ethics Act involving her so-called Alaska Fund Trust (AFT),...
 
 
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HUFFPOST SUPER USER
Jimcracky
02:12 PM on 07/05/2010
I guess this is what "real Americans" do - take publicly-raised money for personal use. It's just like Teabaggers on Medicare, Farm Subsidies and federal umemployment. Hate the Guvmint, love its money.
05:27 PM on 07/01/2010
Are these acts of rebellion against obedience to the laws felonies or misdemeanors?
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sippewissett
We are ALL Americans, not just the noisy few.
11:36 AM on 06/30/2010
The only remaining question is why Palin isn't in jail. There is NO way, given her use of counsel who told her what she wanted to hear vs. Van Flein's counsel to run the Fund by the Ethics Office, that Palin didn't know she was 'skirting' the law. She is culpable of illegally garnering money for personal gain so where is the jail time?
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HUFFPOST SUPER USER
DevonTexas
Eternal Optimism
09:54 AM on 06/30/2010
returning the money? It's just a cost of doing business in her world. "Ethics" doesn't even know what she looks like.
This user has chosen to opt out of the Badges program
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08:22 AM on 07/01/2010
Yeah right. Blah, blah, blah.

Off to my morning run on a gorgeous sunrise here on
the west coast and grab a Starbucks, I'm buying!! :)
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HUFFPOST SUPER USER
DevonTexas
Eternal Optimism
08:46 AM on 07/01/2010
lol. bring me back a grande, black, no sugar!
This comment has been removed due to violations of our [Guidelines]
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HUFFPOST SUPER USER
Haniel
Unapologetic Socialist. Feel the Love.
01:47 AM on 06/28/2010
I can see $arah Palin's future.....

20 years have passed.

Shuffling street side in an old battered shift with a bottle of night train and the butts of unfiltered Ligetts spilling from her filthy overcoat, casting suspicious glances first left, then right.

Abandoned by her oddly named children. Abandoned by Taaaaaaaaaaaahhhhhhhhhhd. A pitiful sight.

"It was all a plot!" she is muttering to herself, as she shuffles along, occasionally stopping to scream a curse at a passing black SUV, "THAT should be MINE!!!"

Then dropping to the curb, she gives her most bitter refrain, "Damn those Marxist, fascist, socialist, Leninist anti-Americans....they weren't REAL Americans! Not REAL! NOT REAL!!!!"

It is a bitter end to a once illustrious existence.
HUFFPOST SUPER USER
Janetshusb
12:13 PM on 06/28/2010
LOL. The only point I would dispute is the illustrious existence bit.
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HUFFPOST SUPER USER
Haniel
Unapologetic Socialist. Feel the Love.
07:53 PM on 06/28/2010
:oP
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HUFFPOST PUNDIT
siamao
01:43 AM on 06/28/2010
SLEEP REMEDIES
For anyone who worries about taking prescribed or OTC sleep medications, I've discovered
the newest and most efficacious remedy with few side-effects. I used a full dose of the complete
written text of Palin's CSUStanislas speech (link @Snap Shots 10:56 PM below), even making
a few notes, which took me about one-half hour to gain maximum effect. I was, by that time,
nodding off and ready for a nice long nap.

CAUTION: The only side effects seem to be mild disillusionment that our government
couldn't similarly "package" some of the homeless to travel around and give at least
one speech, charging the full Sarah-Rate, so that they'd be economically sound for
quite some time. But, soon, one returns to reality and realizes that, alas, that would
be a type of socialism!
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HUFFPOST SUPER USER
Schalaine
We are women. We vote.
10:56 PM on 06/30/2010
Wealth distributor! Must be a lib. I love it! Problem- the homeless might actually have something to say people might benefit from hearing. Sarah has absolutely nothing positive to contribute to anything, ever!
10:02 PM on 06/27/2010
The more someone preaches morality, honesty, ethics, religion, responsibility, and values in the manner today's far right does, watch out! In reality they are the exact opposite. Sarah is the poster child for hypocrisy.
10:34 PM on 06/27/2010
I'm not a big fan of Palin, especially after her flip-flop on supporting drilling then not supporting drilling. But in this case she actually put out the stipulation to her law team to only create the trust fund if it could be done so legally. Whether the team failed in this measure or not is definitely in question, but Andree Mcleod's statement, "Today's finding makes it obvious that she's out for herself..." seems more malicious than it is objective.
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HUFFPOST SUPER USER
LeftRight
TANSTAAFL
10:42 PM on 06/27/2010
You'd have a point were it not for the fact that they went SHOPPING for bad legal advice! They had lawyers saying that they should confirm the legality of the fund with the Alaska state Attorney General and they WENT TO ANOTHER LAWYER to get someone to call it legal!
HUFFPOST SUPER USER
Janetshusb
11:03 PM on 06/27/2010
a-nonymous: Having lived in Palmer, AK (the town next to Wasilla) I've been interested in following Ms Palin. There is more to Palin's Alaska Fund Trust than is currently making the news. The Alaska Fund Trust was problematical right from the start and she was warned about it. The Anchorage Daily News wrote at least one editorial and there were numerous blogs discussing the legality, the ethics, the use of and the secrecy surrounding the fund. Her own attorney, Mr. Van Flien, told her to have the trust reviewed by the Alaska Ethics Commission and she refused to do so. Had she done that she would have learned that the way it was set up was illegal. Almost immediately after the fund was created it was challenged and the Ethics Committee started reviewing it. This is not something that got sprung on Sarah out of the blue; this is not the fault of her team; she was warned about it; she's had a long time to fix it. She chose not to. I can't imagine why she let this problem get to a point where a court finds her guilty of an ethics charge.
12:46 AM on 06/28/2010
Fanned Cberkland for truth.
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MarvinM
Where's the Ka-Boom?
08:03 PM on 06/27/2010
Whether you think Sarah Palin herself was really trying to defraud people or not with the last fund really isn't the point. The point is, she already, within a day, set up a new one that she claims is really legal this time, and is asking people to donate to it.

I don't know about you, but I find it highly offensive, knowing within a margin of error of maybe a million dollars or so how much money she made last year ($12 mil), that she has not already discharged the about $600.000 legal debt that she has purportedly accrued. (About $500,000 of that being from the one Troopergate investigation, and the other about $100,000 being from the 22 or so 'frivolous' ethics cases launched her way for which she supposedly resigned.)

She is a rich person asking for handouts. Is she the only one who has ever set up a fund to pay legal bills? No. Are her legal bills minor in comparison to the other bills that some of these PAC people have? Yes, Very minor.

While you may agree she should not have to pay the bills, do you not also agree that you should not have to pay the bills? Yes. So don't donate.

HuffPo word limit very limiting to me!!!
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HUFFPOST PUNDIT
siamao
05:11 AM on 06/28/2010
Faved--again!
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sippewissett
We are ALL Americans, not just the noisy few.
11:56 AM on 06/30/2010
Moreover Palin turned down the state's offer of $100K of assistance in fighting ethics allegations. Why? Because she could make more from a Fund she could control. The fact that the Fund was supposedly to support accusations against her whole family goes beyond the pale on being legitimate. But how she loves to play the "victim!"

The poor dupes who gave her money the first time will hopefully not 'bite' the second time. (BTW, the new Fund shares a mailing address with SarahPaAC. Hard to contend she doesn't know about how the second Fund is run...by her cronies.)
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BuckCarson
Life outside the ObamaSphere
07:57 PM on 06/27/2010
My God your entire country is falling apart at the seams and you care about this?
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HUFFPOST SUPER USER
LeftRight
TANSTAAFL
10:43 PM on 06/27/2010
THIS is a significant part of the reason WHY our country is falling apart, because people like S'error get into government power and then DESTROY America!
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sippewissett
We are ALL Americans, not just the noisy few.
12:01 PM on 06/30/2010
FANNED. Right on. It's the connection that Buck is missing.
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HUFFPOST PUNDIT
siamao
01:48 AM on 06/28/2010
Hey, Buck, calm down. Chill. Go read the full text of Palin's CSUS speech and
receive the full benefits of its natural sedating effects.
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HUFFPOST PUNDIT
siamao
07:54 PM on 06/27/2010
YEAH! Just got to #500, and it's not even midnight.

Third Place winner (#498) has just come forward and been awarded the prize.

Will #499 and #500, please come forward to accept your awards.

THANKS TO ALL THE HP COMMUNITY ON THIS THREAD,
as well as to Adam Clark Estes, Social News Editor,
and to the brilliance of the Badge innovators,
for helping all of us connect.
STRENGTH IN NUMBERS

(And I'm a convert--who used to be a dyed-in-the-wool anti-badge person!)
07:30 PM on 06/27/2010
Proof that if you throw enough tarballs at someone, something will eventually stick.

Pathetic state of affairs, America has become.
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HUFFPOST SUPER USER
LeftRight
TANSTAAFL
08:14 PM on 06/27/2010
It's not tarballs when it's the TRUTH!!! Or to put it another way:

Calling someone out for breaking the law is NOT the same as lying and accusing them of breaking the law.
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sippewissett
We are ALL Americans, not just the noisy few.
12:02 PM on 06/30/2010
Tarballs are unfair and unfounded. In Palin's case her own word-salads and deeds tar her.
06:14 PM on 06/27/2010
LOL @ tow-bit crook (Why pilgrim thats one bits to many), Look Sarah is a joke, I'm sorry for all the righters who want to make something else other than a charlatan I feel sorry for you jesus freaks holding fast your guns and yah bibles... Cause when the jooks goes down, it s you will and grit thats what will help you. She (Sister Sarah) is headline hog [no pun], seems to think making these 140 character or less post will keep her relevant to the young somewhat tech savvy voter. Good luck sister Sarah. Same on Oprah for giving her the time of day.
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HUFFPOST PUNDIT
siamao
06:32 PM on 06/27/2010
CheChedde, let me have the honor of being your first fan! You know, Pilgrim, you can
reciprocate by fanning back. Give a bro a hand-up to meet that goal of 500! LOL

Jooks, I do love me some good jooks, like Same on Oprah.
07:25 PM on 06/27/2010
Just got you to 499...
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lucyliberal
liberal to the bone
06:01 PM on 06/27/2010
teflon sarah will worm her way out of this just like she always has plus rupert murdock has deep pockets if she gets in a bind