Borough district fire chief convicted of fraud

March 11, 2005

KATE GOLDEN/Frontiersman reporter

PALMER - A Mat-Su Borough fire chief was fired last Wednesday after being convicted of fraudulently collecting $6,200 in unemployment benefits.

Steve Linkhart was the borough's District 5 chief. He oversaw fire, emergency medical services and rescue operations for Willow, and directed emergency medical services and rescue for Houston.

From April 8, 2003, through Sept. 15, 2003, Linkhart received $248 in unemployment benefits from the state of Alaska, according to a report by Daryl Hersch, investigator for the state Department of Labor and Workforce Development.

During that time, he reported $45 in earnings, Hersch's report said. In reality, he earned $4,003 during that time, or an average of about $154 a week.

The labor department discovered Linkhart's double-dipping in December 2003 through a computer program that automatically cross-checks employer reports of wages earned with a list of people collecting unemployment for that quarter, according to James Schwanke, supervisor of the Unemployment Insurance Fraud Unit. Discrepancies are generally found six to nine months after they occur, Schwanke said.

Hersch interviewed Linkhart in person on Feb. 2, 2004. During the taped interview, Linkhart admitted he had given false information about his earnings. Linkhart also said he "failed to report his earnings out of laziness" and that he "found it easier to file [unemployment-benefits] certifications without reporting earnings," Hersch's March 16, 2004 report said.

A month after the interview, Linkhart gave back the $6,200 he had fraudulently applied for from the state Department of Labor and Workforce Development. But he still owed $2,976: Alaska statute penalizes offenders up to 50 percent of the unentitled benefits. In March 2004, Linkhart also voluntarily signed over permanent fund dividends from 2004 through 2008, according to Hersch's report.

Linkhart was originally charged with second-degree theft and 12 misdemeanor counts of making a false statement on his unemployment benefits. Palmer District Attorney Roman Kalytiak dismissed the misdemeanors to consolidate the charges as a single charge of second-degree theft, a class C felony that covers thefts between $500 and $25,000.

Linkhart has no prior adult criminal convictions in Alaska.

He was sentenced Feb. 28 by Palmer Superior Court Judge Beverly Cutler, who ordered Linkhart to serve six months in jail beginning April 10, according to court documents. He must pay the statutory penalty and serve 150 hours of community service. After serving time, he will be on probation for three years.

Linkhart is applying to the state Department of Corrections for ankle monitoring, an alternative form of punishment in which he would be able to serve his sentence at home.

Two days after his sentencing, the borough fired him. Borough policy states it cannot employ a convicted felon.

"I was incredibly disappointed," Mat-Su Borough Public Safety Director Dennis Brodigan said of his reaction upon learning in 2003 of the charges.

Brodigan, the borough attorney and other borough administrators met months ago to discuss their plan of action.

"In this country, everybody is innocent until proven guilty. We knew what we had to do if he was convicted of a felony," Brodigan said. "Steve had done a good job for us for the borough, and he made a choice in his life at some point in time that wasn't a good choice."

Contact Kate Golden at 352-2284 or kate.golden@frontiersman.com.