Friday, June 25, 2010

Former half-term Gov. Sarah Palin's legal defense fund ruled to be illegal, all money must go back to donors


Thousands of donors who contributed to a $390,000 legal defense fund for former Alaska half-term Gov. Sarah Palin will get their money back after an investigator said Thursday the fund was illegal because it was misleadingly described on a website.
State Personnel Board investigator Timothy Petumenos said the Alaska Fund Trust inappropriately used the word "official" on its website, wrongly implying that it was endorsed by Palin in her role as governor.
But Petumenos also found that Palin — the 2008 GOP vice presidential nominee — acted in good faith and relied on a team of attorneys to make sure the fund was lawful and complied with the Alaska Executive Branch Act.
Palin's attorney, Thomas Van Flein, said the trust brought in almost $390,000 before Palin stepped down as governor July 26, 2009. More than $33,000 has since been donated, but Van Flein said that money will go toward $87,680 the trust has incurred in administrative and other expenses.
Palin's friends and supporters created the Alaska Fund Trust in April 2009. An ethics complaint was filed soon after by Eagle River resident Kim Chatman, who alleged Palin was misusing her official position and accepting improper gifts.
Chatman said she was glad the case came to a resolution, although she felt it fell short.
"I'm ecstatic the truth came out, but I don't understand how they said this was a good faith effort on her part and they're going to blame it on her attorneys," Chatman said. "She's never accountable for anything."
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, as well as a complaint over state-paid trips Palin took with her children as governor.
In the family travel complaint, also investigated by Petumenos, Palin agreed to reimburse the state about $8,000 for costs associated with nine trips taken by her children.



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