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Alaska Fund Trust

Alaska Fund Trust

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A confidential report, obtained by The Washington Post on Tuesday, says Palin may have violated laws prohibiting elected officials from using their office for "personal gain" by raising money for her Alaska Fund Trust.

She established the fund to help defend herself against more than a dozen ethics complaints filed against her since she took office.

"There is little doubt that the Alaska Fund Trust will provide 'personal gain' to Governor Palin because the trust will provide a benefit to the governor's financial interest," Anchorage lawyer Thomas M.

Daniel wrote in his nine-page report, dated July 14.

Palin spokeswoman Meghan Stapleton would not confirm the existence of the report.

"It appears suspect that in the final days of the governor's term, someone would again violate the law and announce a supposed conclusion before it is reached," she said.

Palin is scheduled to leave office this weekend, about 18 months before the end of her first term.

Daniel, who was hired by the state personnel board to investigate a complaint by Alaskan Kim Chatman, declined to discuss the contents of his report but outlined the process for handling it.

After reviewing the report, Palin could decide to settle or the issue could go before an administrative law judge for a hearing, he said.

Among Daniel's recommendations in the report are that Palin "refuse to accept payment for her legal fees and costs" from the fund and ask the state to reimburse her for legal fees incurred for complaints that are dismissed.

Daniel's report also highlights the relationship between the fund's trustee, Kristan Cole, and Palin.

The governor appointed Cole, a longtime friend, to positions on the Royalty Oil and Gas Commission and the Board of Agriculture and Conservation.

"The relationship between Ms.

Cole and the governor could cause a 'reasonable person' to conclude that the payment of the governor's legal fees is intended to influence the governor's performance of official duties, action or judgment," Daniel wrote.

Cole defended the legality of the fund, which is still accepting donations, and said it was "thoroughly vetted by numerous attorneys from Alaska to the East Coast." Thomas Van Flein, Palin's personal attorney, said in a statement: "The resolution of the Trust Fund is not final.

I have been working with the investigator regarding supplemental information.

The matter is still pending.

Whatever you have seen was released in violation of law.

There has been no Board finding of an ethics violation and there is a detailed legal process to follow before there is a final resolution."

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/21/AR2009072102949.html?hpid=topnews
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