The letter was written by Thomas Daniel, the attorney assigned to investigate the claim that Palin violated the Alaska Executive Branch Ethics Act by establishing a fund to raise donations from the public to help pay for her legal fees.
In his letter, Daniel said there is probable cause for the state personnel board to investigate based on two sections of the ethics code. First, by endorsing this trust as the official legal expense fund of the governor, Palin used her public position for her personal benefit. Second, any money she accepted from the trust would constitute an improper gift from the trustee.
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Cole called a press conference Wednesday afternoon to respond.
Her written statement began that Daniel’s findings were “unprecedented in the history of our country, suggesting that a legal defense fund could somehow be unethical.”
The trust has been vetted by a team of lawyers across the country, and Daniel is the only one who had found it in violation of any law, Cole said. This fund is more restrictive and transparent than the funds set up for other governors, presidents or senators, none of which have ever been found in violation of ethics standards, she said. In fact, Daniel’s law firm set up a defense fund trust for Sen. John Kerry, a trust that allowed far larger donations than the $150 maximum of the Alaska Fund Trust, Cole added.
Cole said Palin has never been involved in the trust and has not received any money yet, as Cole was waiting for the results of the pending investigation.
There was only one breach of ethics laws in this matter, and that was the complainant herself, Kim Chatman, Cole said. Under the ethics act, all information regarding ongoing investigations is legally confidential. As the letter was sent to only a few select individuals, it stands to reason Chatman was the one who leaked the letter, Cole said.
Daniel’s investigation was not complete, and his opinion could have potentially changed, Cole said. He has requested more information and interviews from Cole since he wrote the letter.
After Cole, the trust’s lawyer, Jon Givens, said Alaska state law makes no provision or rules regarding legal defense funds. In cases where there is nothing on the books, the standard practice is to look to other states and the federal government for guidance, Givens said. While he could not say which lawyer looked at which state in developing this fund, he did say it met and actually exceeded the federal guidelines.
Givens and Cole did not say if the fund was going to seek action against Chatman, and there was a loophole in the law regarding penalties for breaching confidentiality.
“It’s unfair to (Daniel) to have some preliminary work put out when there’s still more factual investigation going on,” Givens said. “And now, if he changes something, then what do people say or do about that? It is unfortunate someone has violated the ethics act by releasing a preliminary document like this.”
Following is Kristan Cole’s statement Wednesday afternoon.
Thank you for being here today. My name is Kristan Cole, Trustee to the Alaska Fund Trust. And this is the Trust's attorney in Alaska, Jon Givens.
I am here to address the unusual letter that was leaked yesterday, the contents of which are unprecedented in the history of our country, suggesting that a legal defense fund could somehow be unethical. This is particularly notable, and concerning, in light of the fact that the Trust, on my instructions, has not paid even one penny to Gov. Palin or her lawyers. I issued that instruction because I was aware the Board was reviewing this matter.
This Trust was created by a team of expert lawyers from around the country. It was thoroughly vetted for compliance with federal and state law and trust law. So far Mr. Daniel is the only lawyer in the country who has questioned a legal defense fund despite the fact that his firm has set up legal defense funds for other office holders. Because his initial review was unprecedented and contained factual errors it was my understanding that Gov. Palin's legal team, including Mr. Van Flein, were in on-going discussions with Mr. Daniel. The matter was not final.
I want to be clear on a point that has been misrepresented: The Governor is not and was not involved with the Trust. The Governor has never worked on or with the Trust. The Governor has not even accepted or requested one penny from the Trust or quite frankly anything of me. And I have never expected anything from her. Really it’s quite the contrary; as I, and many other caring folks across the country have only sought to help with this legal burden.
The first and only time I have spoken with the Governor about the Trust was yesterday to alert her that I was responding to this violation of the law and leak of preliminary and confidential materials from the complainant.
There is a loophole in Alaska law. Alaskans can file frivolous complaints against the Governor - violate the law and alert the media they are doing so, all the complaints can be dismissed and yet the Governor has to personally pay for representation. Legislators covered themselves with a law that warrants automatic dismissal of a complaint if it is leaked to the public.
It has been quite obvious to me, and to other every day citizens like me, that over the last several months that something needed to be done to help the Palins with the overwhelming crush of frivolous ethics complaints.
In their own humble way, the Palins never asked for help. The Governor never even asked anyone to contribute to this legal expense fund. This trust, and the thousands and thousands of dollars raised, were the results of hard working Americans and their outpouring of support. It is disgraceful that anyone would assume that the thousands of people who sent in $5, $10 or $50 intended to "influence" the governor's official actions in Alaska! And this in a state where a half dozen legislators have been convicted of corruption as well as the previous governor's chief of staff. Not one ethics complaint was filed against these individuals who were convicted, but this governor is harassed for having her picture taken with a fish, wearing a jacket, answering press questions and giving a speech.
A few select people have abused our ethics act. The public release of a preliminary document in violation of state law follows that pattern. The people of this state are losing hope that the ethics act has any real purpose anymore and that’s incredibly sad as ethics are so important. Mr. Daniel's preliminary assessment, unprecedented in history and harshly criticized by legal scholars, does nothing to restore credibility to this process.
Numerous individuals thought to help the Palins - not just me. But when I was asked, I was doing research of my own and determined that I would put my name on a Trust already going through an intense legal process throughout the country to ensure that this one was airtight and complied with every possible law under the sun. And this one does. It is one of the most restrictive and transparent trusts of its kind. The validity of the Trust is strong. It is unprecedented in every way imaginable... all donations must be under $150, no donations from lobbyists, and nothing accepted from foreign nationals to name a few. No trust has ever been found to be a violation of ethical standards for any governor, former president, senator, or house member, or former member of Congress. But this Trust which has more severe donation and donor limits than any trust in the history of legal defense trusts might violate ethical rules?
Some Trust funds are formed and accepted to defend politicians in true Courts of Law with regard to some very serious criminal charges. And yet, this Fund was created by others to help the Palins pay for their legal bills due to frivolous complaints - each of which has been dismissed thus far. I will let my attorney speak to the legal issues but I wanted to take this opportunity to speak to yesterday's blatant violation of the law.
You know, we have witnessed time and again the blatant abuse of process when it comes to people filing these complaints and illegally discussing them and leaking them to the press- but this latest move further crosses the line and we are all reviewing action for the reputational harm caused by Ms. Chatman based upon the leak of Tom Daniel's preliminary thinking on the matter - a product that may have ultimately been remarkably different and perhaps even dismissed. Where is the accountability for those who blatantly disregard the requirement to keep the issue confidential?
There are many questions which need to be asked following my read of what was leaked.
And, if I may digress - this is how backwards our laws are - I had to go online and read the preliminary letter about the Trust and me because Mr. Daniel and Mr. Van Flein cannot violate the confidentiality of the Ethics Act (even though it appears the complainant has)and therefore cannot even forward the preliminary letter to me. Now that I have read it, I still hope to inform Mr. Daniel of the important information that Mr. Van Flein had requested from me to be shared with Mr. Daniel.
What was the reason for my involvement? The preliminary letter suggests that perhaps I served as Trustee so I could get some job with the state. This is amazingly wrong and so incredibly hurtful. That is the last thing I want. I did this because it believed it was the right thing to do for our Governor. I love Alaska. I have lived here 40 years and I have always served the state when asked - and despite the fact that I am entitled to public monies in the form of expenses, per diem and wages - I have declined every single penny. I have served as a volunteer on others boards, and commissions (The Real Estate Commission and the Agricultural Revolving Loan Fund Board) under a previous Governor so volunteer work has been part of my life for a long time. I was approached to serve as Trustee for the legal defense fund. I did not seek out this position just as I have never sought out any other position but was willing to step up to the plate and serve when asked because that’s what we all do when asked to serve our country, our state and our communities isn’t it? We do it because it’s the right thing to do and by all of us serving where we can, we all benefit. My sons and my husband have served our country. I have served our state and our community here in the Mat Su Valley with the hope that we are making a difference where we can.
So how unfair is it that the Governor can be told she was wrong for putting together the Fund, soliciting Funds, accepting the Funds and spending the Funds when she hasn't been involved at all----And no money has been spent on her legal defense?
If the Governor only accrued the bills because she is a public figure then why is it wrong for a Trust to collect funds to defend her as a public figure? Alaska law specifically states that there is only a problem if there is "intent" to influence the Governor. How can there be intent to influence a Governor in Alaska with a $5 voluntary donation from Kansas? To date, approximately 90% of the contributions are from Outside Alaska and many are $5, $10 and $20 donations. Not one penny has been paid to any law firm or entity for the Governor's financial gain. If the Governor has not solicited or accepted personal gain, how can she be in violation of soliciting and accepting monies for personal gain?
Let’s review what has been deemed lawful. Creation of the PAC and fundraising was deemed lawful. Writing a book was deemed lawful. All other legal defense funds similar, but not as restrictive as this one, have been deemed to be lawful. The very firm who put together Senator Kerry’s legal defense fund which was deemed lawful was put together by the very law firm that Mr. Daniel is employed by. These are inconsistent conclusions and defy common sense. That is why this matter was not final and Mr. Daniel and Mr. Van Flein were discussing these issues.
Potential future gain, based upon no active solicitations, in one of the most stringent legal expense funds in the country does not merit a situation much less a violation. Mr. Daniel says that because the Trust was an "official" Trust he felt it violated the law. This overlooks the necessity of having one "official" fund. The unofficial funds are the very ones that had the potential to harm the public by unscrupulous people.
We knew that in fairness to Alaskans and Americans, this site needed to be official because of the potential scams that could arise. How ethical would it be for a pensioner in Iowa or a single mother in New Hampshire to have their donation diverted by someone who had no intention of helping the Governor and may keep the money for themselves or other equally harmful things?
But let's think through the same logic, if a foreigner wanted to set up his or her own fund, collect a handsome payoff, and accept $5 million donations from rogue groups even, as long as that person did not tell the Governor, that would be okay? That is the conclusion that is being reached here in Mr. Daniel letter and flies in the face of good logic, common sense, and the good necessity of protecting the public.
Every aspect of the Alaska Fund Trust follows the law. Precedent allows for it. The Palins haven't been involved with it. It is unfortunate that some in the media were so quick to point the finger at the Governor for something others are responsible for and have established to assist her in the fight against these outrageous attacks. And this acceptance that the law can be continually violated for pure political gain ... is wrong.
Comments
69 comment(s)Oops wrote on Jul 31, 2009 8:22 PM:
Ginger wrote on Jul 31, 2009 5:49 PM:
OReally wrote on Jul 30, 2009 6:20 PM:
Littlebird wrote on Jul 29, 2009 10:13 PM:
Chicago to Gotta wrote on Jul 29, 2009 4:33 PM:
sharpie wrote on Jul 29, 2009 4:13 PM:
..except for the last few dozen times that it's been proven to be frivolous attacks, quickly disproven and tossed out. Yeah, but THIS time it's for real, right?! Man....stubborn or just stupid? "
EdwardfromAZ wrote on Jul 29, 2009 3:55 PM:
" Ms. Chatman needs to get a life. Maybe she should pay court costs and see how many law suits she files then? There is so much money wasted that goes to these kinds of things. Stop the waste. Stop people from filing law suits at our expense just because she did not get what she wanted from the Govenor. "================== Funny, but the law has been violated and SP can't deny it "
Gotta love Chicago wrote on Jul 28, 2009 7:22 PM:
One would think that somebody from that cesspoole would be smart enough to sit quietly in the back before making any disparaging comments about any other area's political atmosphere. But then again, if they were smart they wouldn't be in Chicago.... "
Chicago to Sharpie wrote on Jul 28, 2009 6:22 PM:
Oh, I get it alright. I see a three-ring circus with all the clowns you can handle, featuring the winner of the 2009 Iquitterod.
You are such a dufus. LOL big-time.... "
Chicago wrote on Jul 28, 2009 4:42 PM:
to Oops wrote on Jul 28, 2009 3:20 PM:
And it's one thing to suspect that there are many gullible people that are easily suckered by a puppet reciting words written for him on a teleprompter. I'm surprised to actually see somebody ADMIT that they are!
Now if you would just admit that you don't take the time to cross-reference what you're being told with reality, you'd satisfy both suspicions that the rest of us have on how such an obvious socialist and fraud like Obama gets elected! "
Frivilous waste wrote on Jul 28, 2009 2:23 PM:
Oops wrote on Jul 28, 2009 12:35 PM:
MVPappas wrote on Jul 28, 2009 11:56 AM:
sharpie wrote on Jul 28, 2009 8:14 AM:
Very amusing assumption that we support Palin based on her looks. Especially for the women. And I suppose we support Mitt Romney or miss Reagan based on their looks too, idiot?
You sure seem to "know" a lot that any sane and intelligent person would chalk up to wild speculation and assumption. But nevertheless, I for one like seeing your blogs in here. They're very, very entertaining. It's not too often you see somebody so willing (or just not smart enough to get it) to make such a complete fool of themself in a public forum. Thank you! "
watcher wrote on Jul 27, 2009 6:50 PM:
Lisnup wrote on Jul 27, 2009 6:13 PM:
Chicago wrote on Jul 27, 2009 5:48 PM:
Oh, real quick. I wonder if your resolute support would be the same if the ex-gov was a bald guy with a potbelly and wears white socks with a suit. Don't bother responding. I know the truth already. Yes, you are that shallow. "
jp wrote on Jul 27, 2009 2:43 PM:
Power Wagon wrote on Jul 27, 2009 1:18 PM:
Glester wrote on Jul 27, 2009 11:57 AM:
Chicago to Watcher et al wrote on Jul 26, 2009 5:20 PM:
For the upteenth time you cannot stay on point. We are not discussing Dem vs. Rep., Alaska vs. the world, tastes great, less filling or any other assorted blather that you keep harping on. Are you stupid or just plain dense??? THE SUBJECT IS SARAH PALIN. GET IT??? SARAH PALIN! And for the record slick, you do not need to be embarrassed for me. As I see it you are an intractable numbskull here. "I'm embarrassed FOR you." You're so smart Watcher!! LOL "
watcher wrote on Jul 26, 2009 1:35 PM:
Your rebuttal to a point made about the economy, Palin etc is to use a person's blog name to insult the size of his manhood? That's it? That's your best? Sheesh....that's so pathetic that I'm actually embarrassed FOR you!
Without meaning to, you've actually validated an earlier point made that when people don't have true intelligence or facts on thier side, they must resort to tantrums and childish name-calling. Thank you for demonstrating such a clear example. "
danb wrote on Jul 26, 2009 12:19 PM:
Oops wrote on Jul 26, 2009 10:05 AM:
lukagirl wrote on Jul 25, 2009 10:13 AM:
buddy glover evansga. wrote on Jul 25, 2009 7:41 AM:
EdwardfromAZ wrote on Jul 24, 2009 8:25 PM:
" It is clear that these "ethics" complaints are an organized effort to discredit Palin. Well, it didn't work! How "independent is Daniel? His law firm was general cousel for Obama for America and he is a financial contributor to the DNC. If the Alaska Trust Fund is "unethical" then how about Kerry's trust fund and the Clinton's trust fund? "========
Funny you did not complain when the same investigator said Palin was not guilty on a prior ethichcs complaint. As to Kerry etc, they are under FEDERAL LAW "
EdwardfromAZ wrote on Jul 24, 2009 8:22 PM:
" there should be an open season on Democrat terrorists, and hold them accountable and financially responsible for the court costs, and be open to civil claims by the ones they are trying to lynch.
How about Obamas receiving of funds from goldman sachs? or the Taliban? or Hamas? or Whoever else?
see, we could do that too!
Let's start making wild accusations and ethics complaints on him! "
==========
JP, you finally have gone off the deep end. I guess reading comprehension is not your strong point. "
EdwardfromAZ wrote on Jul 24, 2009 8:19 PM:
" Follow the money. You have an "investigator" who works for a firm representing 0bama making a determination that Palin violated ethics laws. He bases this on his own opinions, and pretends to read peoples minds..........
It's time to start investigating who is paying Linda Biegel, Chatman, Moore, McLeod, Henning, and the rest of them.
===================
Funny, I don't recall you complaining when the same investigator said Palin was innocent on a prior complaint.
So hich way do you want it? Sarah is guilty on this one or the prior one? "
Chicago wrote on Jul 24, 2009 7:44 PM:
You talk a good line but what makes you think it's as simple as a division of opinions along party lines? You keep defending conservative vs. liberal platforms. That's not the story line. It's whether or not SP did or didn't break ethics laws and whether or not she is fit for any political office. If you are as independent as you would have us believe you'd understand that it much more complex than your simplistic "I'm right, you're wrong" views. You are the bore! Big truck, little ----? You know the saying...... "
Palmer Farm wrote on Jul 24, 2009 7:33 PM:
Glester wrote on Jul 24, 2009 6:27 PM:
Wasilla Doug wrote on Jul 24, 2009 5:55 PM:
Power Wagon wrote on Jul 24, 2009 12:37 PM:
Oh, and the "wait and see" comments regarding all the evils and perils of Sarah Palin that are supposed to jump out of the bushes...we've been hearing that for months now. Yet, everything introduced has been dismissed for being the useless smears and attacks that they are. You're boring. Come up with some new material. "
Go Sarah wrote on Jul 24, 2009 11:10 AM:
She will play by new rules rather than the old boy way. Keep it up... "
Good riddance wrote on Jul 24, 2009 9:59 AM:
She may be a big hit to a small circle of adoring followers, but that group grows smaller daily, and that is as it should be. Sarah Palin may be hungry for glory, but it takes a great deal more than that to lead wisely and well. "
jp to just the facts wrote on Jul 24, 2009 7:20 AM:
Glester wrote on Jul 24, 2009 7:09 AM:
Oops wrote on Jul 24, 2009 7:07 AM:
Cheryl wrote on Jul 24, 2009 4:52 AM:
Lee wrote on Jul 24, 2009 1:31 AM:
SP is a breath of fresh air and wonderful for America.
Run Sarah Run. "
BlackOps00 wrote on Jul 23, 2009 8:50 PM:
"Gee, everything they've thrown at her thus far has been tossed out for being tripe. But yeah, yeah....THIS time it's true!"
Geez "
Jules Hamil wrote on Jul 23, 2009 6:05 PM:
sorry wrote on Jul 23, 2009 5:20 PM:
Just the facts wrote on Jul 23, 2009 4:38 PM:
I second the sentiment wrote on Jul 23, 2009 3:47 PM:
ag wrote on Jul 23, 2009 3:40 PM:
Transparency has turned into a black curtain of dishonesty thrown up by her at each an every attempt to hold her accountable, as she asked the public to do when we were duped into electing her.
She was nothing but an alternative to Frank. Now Alaskans know we must be careful when voting for someone because they seem to be "the best of the worst". "
Archivist wrote on Jul 23, 2009 2:45 PM:
I couldn't get past that part .. LMAO ... the Palins?? HUMBLE???
Is she kidding??? "
Ya know wrote on Jul 23, 2009 11:25 AM:
scajun wrote on Jul 23, 2009 10:09 AM:
allisaw wrote on Jul 23, 2009 9:58 AM:
Dairy wrote on Jul 23, 2009 9:02 AM:
Lack of Education wrote on Jul 23, 2009 8:20 AM:
jp to all military folks wrote on Jul 23, 2009 8:08 AM:
Obama has proven himself, Nancy Pelosi, and Harry Reid. to be a threat to the United States, as they have desomated every financial institution this country has, and now are working on destroying the insurance companies, and the military!
What will it take to wake you people up?
They want your guns, your money, and your health! what about that doesn't scream "Terrorist" ? "
Gwen wrote on Jul 23, 2009 6:26 AM:
sueinmn wrote on Jul 23, 2009 6:18 AM:
LallyG wrote on Jul 22, 2009 10:29 PM:
Thanks to Kristan for explaining the facts.
A new precedent should be set to punish those filing frivolous complaints, and for those divulging the confidential content of the complaint to the media. "
Travis wrote on Jul 22, 2009 9:32 PM:
it is more than just a bit odd that the democrat liberals (along with some Rinos) and the MSM tout and cheer every false charge against Sarah. But, when anyone should dare to question Obama's natural born citizen status, they are vilified beyond the pale.
Who is John Galt? "
Greg Wood wrote on Jul 22, 2009 9:18 PM:
Keep up the good work. "
jp wrote on Jul 22, 2009 8:47 PM:
How about Obamas receiving of funds from goldman sachs? or the Taliban? or Hamas? or Whoever else?
see, we could do that too!
Let's start making wild accusations and ethics complaints on him! "
Amy wrote on Jul 22, 2009 8:28 PM:
Piney wrote on Jul 22, 2009 8:26 PM:
Somebody is attempting to smear Governor Palin. The info being released about the complaint and the findings is to insure the publicity will damage.
There is always karma, what goes around comes around. "
Oops wrote on Jul 22, 2009 8:17 PM:
Jim and Jamie Smith wrote on Jul 22, 2009 8:13 PM:
Nome_Shane wrote on Jul 22, 2009 8:00 PM:
Destruction of anyone whom the left may disagree. Liberals are scared to death of Governor Palin because she exposes them for who they are, and that cannot be tolerated by "altruistic" liberals
I for one back Governor Palin (and her wonderful family and lifestyle). Please meet the next president of the United States: Sarah Palin! "
navy wrote on Jul 22, 2009 7:53 PM:
Richard A. Holderman wrote on Jul 22, 2009 6:38 PM:
greg wrote on Jul 22, 2009 6:20 PM:
It's time to start investigating who is paying Linda Biegel, Chatman, Moore, McLeod, Henning, and the rest of them. "