Assembly Member Allen charged in federal whistleblower investigation

MAT-SU - Mat-Su Borough Assembly Member Bill Allen has been accused in a probe by the United States Office Special Counsel for allegedly involving his secretary at the U.S. Department of Agriculture in work related to his position on the assembly.

Former secretary Nancy Hayes filed a series of complaints leading to the investigation. A report released Monday stated that Allen, who resigned July 6 as the Alaska director for rural development with the USDA, committed multiple personnel and Federal Hatch Act violations when he had his secretary type reports, maintain his borough calendar and handle communications with borough staff.

Hayes indicated that Allen's resignation conveniently coincided with the completion of the investigation by the special counsel.

&#8220The way I understand it is that the special council completed its investigation on June 2,” Hayes said. &#8220I wasn't in the meeting, but I heard that the Secretary of Agriculture gave him the choice to either resign or be fired and face stiff penalties.”

Also investigated as part of the complaint were allegations that Allen also required his secretary to prepare a false USDA travel claim to obtain reimbursement for a trip he took with other borough officials to Juneau for the purpose of lobbying state officials on behalf of the borough.

Following a lengthy investigation, the Office of Special Counsel verified Hayes' allegations and concluded that Allen assigned his secretary to a lower-graded position in the organization, eliminated her secretary position from the state office, and selectively ordered a misconduct investigation against her because of her complaints.

Allen dismissed the allegations and findings release by the special council.

&#8220This so-called investigation has been ongoing for three and a half years,” Allen said. &#8220And during the interim, there have been other investigations surrounding this issue, and the findings by the department each time was that there was no wrongdoing by the state director (Allen).”

The Office of Special Counsel is an independent federal agency that investigates and prosecutes complaints alleging prohibited personnel practices, including retaliation for whistleblowing. It acts on behalf of victims of prohibited personnel practices, and has authority to seek voluntary corrective action from federal agencies or through administrative litigation.

The special counsel determined that Allen violated personnel regulations.

According to the report, Hayes confronted Allen in private and informed him that she would no longer perform nonfederal duties. She told him conducting political activities at work was illegal, that they both could get in trouble, and that he should take his political work home.

Hayes also reported Allen's alleged violations to various agency officials, including an ethics officer and, subsequently, the acting assistant secretary for rural development.

&#8220He had us doing borough work on rural development dollars,” Hayes said. &#8220It wasn't just me doing secretarial work for Bill Allen the assemblyman. Other people in the office were doing other things for him as well. He'd invite state legislators to come visit him and see what is happening in the office and then lobby them for the borough. That went on for three years until my position was eliminated.”

Hayes later filed a complaint alleging Allen retaliated against her because of her complaints.

&#8220I came back from a vacation and my job was gone,” Hayes said. &#8220I was moved from a G-8 position to temporary duty as a G-7, from a secretary to loan tech.”

Allen addressed the change in position and what he said were errors in a news release from the Office of Special Counsel.

&#8220Nancy didn't receive a demotion of any sort as the press release said,” Allen claimed. &#8220In fact, she was not injured in any fashion (i.e. loss of compensation, etc.). She was transferred to another program area in the state office at her request.”

Hayes worked as Allen's secretary from the time of his appointment in 2001 through 2003 before changing positions to loan technician, a position she still holds.

Regarding the charge that he had Hayes falsify travel reimbursement documents, Allen said it stemmed from a trip he took to Juneau on USDA business, where he was invited to meet with borough officials at approximately 5:30 p.m. to discuss the Mat-Su prison project with the commissioner of corrections.

&#8220I was off the USDA clock and was asked by the borough manager to join the borough delegation in the meeting,” Allen said. &#8220I never asked her to falsify documents in order to receive travel reimbursement. Her claim is a fabrication.”

Allen said the investigations into Hayes for misconduct stemmed from an incident in which she intercepted a confidential fax regarding the settlement of a labor issue filed against the agency.

&#8220Ms. Hayes not only read the confidential settlement agreement, but divulged its contents to the claimant,” Allen explained. &#8220She was also caught accessing my computer and locked confidential files in my office.”

Hayes was cleared of any wrongdoing after the investigations.

The special counsel found that Allen also violated the Federal Hatch Act by soliciting the services of a subordinate employee for partisan political purposes, a claim Allen also dismisses.

&#8220My wife and friends from our church held an appreciation picnic for Sen. Ted Stevens during the Palmer State Fair in 2002,” Allen explained. &#8220The event was held in our home, and flyers announcing the event were distributed in the neighborhood and amongst friends. My name or USDA did not appear anywhere on the flyer.”

But Hayes said there was more to it then one incident.

&#8220It wasn't just one or two things that he did which led me to file a complaint,” Hayes explained. &#8220It was the totality of everything. Three years of breaking the law because my boss was breaking the law and the burden became to much to bear. That's what led me to seek out an attorney and file the complaint.”

Because Allen is no longer a federal official, the Office of Special Counsel cannot prosecute him for his alleged prohibited personnel practices or his alleged Hatch Act violation.

Acting Alaska USDA Rural Development Director Deborah Davis directed all questions to USDA Undersecretary Tim McNeilly in Washington, D.C., who said special council spokesman Loren Smith could answer all questions. Smith was unavailable for comment Tuesday.

In response to a report containing the special counsel's findings, the USDA has agreed, without admitting fault, to provide Hayes with full corrective relief. Under the terms of the agreement, she will be reimbursed for attorney fees and medical expenses, and assigned permanently to a new position within the Alaska state office.

Contact Darrell L. Breese at 352-2267 or at darrell.breese@frontiersman.com.