Showing posts with label alaska trust fund. Show all posts
Showing posts with label alaska trust fund. Show all posts

Thursday, 24 June 2010

Investigator Tim Petumenos rules: Sarah Palin's "Alaska Fund Trust" (Legal Defense Fund) was illegal - UPDATE: THE SCANDAL CONTINUES!

Investigator Tim Petumenos - Sarah Palin - Alaska Fund Trust ethics complaint
Tim Petumenos

"An investigator for the Alaska Personnel Board says a legal defense fund set up for Sarah Palin when she was governor was illegal.

Investigator Timothy Petumenos said Thursday the Alaska Fund Trust inappropriately used the word "official" on its website, wrongly implying Palin's endorsement as governor.

Palin's attorney says she will return the funds.

Petumenos, however, found the 2008 GOP vice presidential nominee acted in good faith and relied on the advice of lawyers when setting up the fund.

A preliminary, confidential report also implicating Palin was issued last July, less than two weeks after she announced she was resigning. In announcing her resignation, Palin cited the toll of the ethics probes as one of the reasons she was stepping down."


So, the ethics complaint which was filed by Kim Chatman in 2009 was successful, which is good news. But, not surprisingly, Sarah just get's a slap on the wrist: Such an innocent looking woman could NOT possibly act in BAD faith, could she? Now she is a victim of the evil lawyers who did everything wrong.

Under Meg Stapleton's name a long post has already been published on Sarah's facebook.

The spin is unbelievable!
"Ultimately, the Alaska Fund Trust was borne, and within a day or two, a complaint was filed against it challenging its legality. (And like everything else, the public knew because someone – likely the complainant – violated the law and publicly released the accusation.) And so started another prolonged legal battle – this time to determine if the legal fund created to defend Governor Palin against frivolous ethics complaints was itself ethical. Quite a circle really. We made it clear that no money would be paid out on until the matter had been resolved.

Thus, to this very moment, the money received was frozen and no one, not the Palins, not the Palins’ attorney, no one ever received a penny from the Trust on the Palins’ behalf.

The Personnel Board initially appointed an “independent” investigator. That investigator, we later learned, had connections with, and was associated with President Obama. The Personnel Board had hired President Obama’s personal law firm as an “independent” investigator to review whether a fund created to raise money to eliminate a debt incurred as a result of Governor Palin’s opposition to President Obama was appropriate. We objected to both the illegal leak and the blatant political influence, and a new investigator was appointed.

The new investigator spent considerable time reviewing the old information and collecting new, but I think it proved to be too difficult to reverse an already-public decision. He concluded that the Trust fund violated Alaska law in two respects. His biggest heartburn was that we used the word “official” on the website. And he was distressed that we turned down an offer from a former White House Special Counsel to serve as trustee and instead chose an Alaskan whom Alaskans would recognize – Kristan Cole."

Also, a BRAND NEW Legal Defense Fund has been started for the multi-millionaire Sarah Palin, as is proudly announced in this facebook post.

Milk the sheeple as long as you can, Sarah!


Download the full Petumenos Alaska Fund Trust Report HERE.



Sarah's shiny new Legal Defense is just announced today, and already we can prove that the people who run this new Defense Fund are LIARS!

On the website of this new Defense Fund, it says:

Screenshot New Legal Defense Fund

"Is this site officially sanctioned by Sarah Palin?
Yes, the legal defense fund is sactioned by Sarah Palin. However, this website and fund are not associated with SarahPAC or other entities. Governor Palin is not the trustee of the fund. She has sanctioned the use of her name and image for the website and trust to help raise funds for her legal defense."

So, who is behind her new Legal Defense Fund? Nobody knows, and not even the name of the Trustee is mentioned. The only contact details on the website of the new Legal Defense Fund are an email address and postbox in Anchorage:

Screenshot contact details new Legal Defense Fund website

However, somebody forget to cover his tracks.

Look at the registration details and administrative contact information of the website for the new Legal Defense Fund:

HERE (another link HERE and HERE):

Screenshot WHO IS Sarah Palin Legal Defense Fund new

The registrant of the website is:

Registrant Contact Information:
Name: T C
Organization: Sarah Palin Legal Defense Fund
Address 1: P.O. Box 7711
City: Arlington
State: VA
Zip: 22207
Country: US
Phone: +1.12027471812

Now guess what the contact details of SarahPAC are?

The new "Sarah Palin Legal Defense Fund", which officially has absolutely nothing do to with SarahPAC, Sarah Palin's political action committee, shares the same address and phone number with SarahPAC!

And I would eat my hat if "TC", who is the registrant and the administrator of the new website, doesn't stand for "Timothy Crawford", the treasurer of SarahPAC (see our post about Timothy Crawford).

Sarah, you are so BUSTED! ;-)

You might fool some investigators, but you won't fool us.



The Petumenos AFT (download here) report contains several real bombshells and exposes several lies of Sarah Palin and her devoted Palinbots.

We learn for the first time ever that the State of Alaska was actually prepared to pay for the costs of Sarah Palin's legal defense against the ethics complaints, for "up to $ 100,000 at public expense" - but Sarah Palin turned it down, with a moronic explanation:

Screenshot - Petumenos report 1

So, nobody was about to bankrupt poor Sarah! The State of Alaska wanted to pay for her!

But it was Sarah herself who declined!

In addition, we learn also for the first time that it was no "grassroots effort" which led to the creation of the Alaska Fund Trust - it was Meg Stapleton and Sarah Palin herself who organized everything!

Screenshot - Petumenos report 2

The extent of the lies is just incredible.

See the lengthy statement of AFT trustee Kristan Cole which Sarah Palin published on her facebook on July 22, 2009:

"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."

I do hope that the MSM will notice the lies as well.

Sarah Palin, how does it feel to be a gangsta?


Please read the extremely interesting report about the press conference today in Anchorage with Tim Petumenos and Thomas Van Flein in Anchorage on Alaska Dispatch.

It's sickening to see the warped messages that new Defense Fund has been sending out already, according to Alaska Dispatch:

Some supporters of Palin have already begun to argue the same of the ethics settlement.

"Sarah Palin's enemies have scored another victory in their vicious campaign to smear, bankrupt, and force this dedicated public servant and conservative leader out of politics!" the Sarah Palin Legal Defense Fund said.

Even as Petumenos was calling the ex-governor's old trust fund illegal, the new fund was being set up and e-mails were being sent out soliciting funds. The e-mail was labeled "Defend Sarah,'' and asked people to send money to "pay the legal fees to rebut these relentless, frivolous lawsuits."
"This ruling is nothing but a political hatchet job designed to embarrass Governor Palin, destroy her financially, and smear her good name. But YOU can help restore her good name!"

A copy of this new begging email by the "Sarah Palin Legal Defense Fund" can be found on this website.

Another excerpt:

"As you know, Governor Palin made the painful decision to resign last summer rather than waste the good people of Alaska’s time responding to the more than 27 frivolous lawsuits filed against her and her family by left-wing extremists.

Now her enemies say she’s not even allowed to defend herself.

---, will you stand with me and The Sarah Palin Legal Defense Fund today as we fight to defend Governor Palin from this latest attack?

Alaska is perhaps the only state in the U.S. where the Attorney General does not routinely represent the governor when accusations and complaints are filed against the governor under the operative ethics statutes. This means that the governor has to personally pay for her or his own defense."
That means not only was Sarah Palin required by law to respond to each and every frivolous lawsuit filed against her by left-wing activists, but she also had to personally foot millions of dollars in legal bills to defend herself from this massive witch hunt.

My friend, that’s money Governor Palin simply didn’t have on a state salary.

So some of Sarah’s closest friends decided to put together a trust fund to help her pay the legal fees to rebut these relentless, frivolous lawsuits.

They called it the Alaska Fund Trust, the “official legal fund” for Governor Palin.

There are so many lies in this short excerpt, it's hard to count.

As it was stated in the Petumenos report, the State of Alaska was prepared to spend $ 100,000 of public money so that Sarah Palin could defend herself.

Left-wing extremists filed the complaints? No - actually, many were Republicans, including Zane Hennings (2 complaints) and Andrée McLeod (several complaints).


Websites which linked to this post:


Monday, 19 April 2010

The secrets of the SarahPAC payroll: What services did "Krobar" provide for $ 51,405?

Guest post by EyeOnYou - Standupforournation Blogspot

From the end of the year SarahPAC report which was filed with the FEC for 2009 we discovered many questionable payments.

Please note that all filed SarahPAC reports can be accessed HERE. The end of year report for 2009 can be downloaded HERE.

The payment to Krobar Studios of Anchorage AK is just one of many items that should be looked at.


Krobar - SarahPAC payment August 24 - 2009

Krobar - SarahPAC payment August 28 - 2009

Krobar - SarahPAC payment September 30 - 2009

Krobar Studios: "Website Development" and "New Website Development"

Payments received from SarahPAC:

08/24/2009 $17565.00
08/28/2009 $18900.00
09/30/2009 $14940.00

Total: $51,405.00

We've all heard the rumors that Sarah was starting a website called Stand Up For Your Nation (I even took that blog name for myself when I first heard the rumors just to keep the palinbots from getting it, since the domain names were already taken), but so far we have seen nothing. When you google “" or "” you’ll find that it is a parked domain, which just means that someone owns that domain but it does not yet point to any IP. They are more or less a domain that is “put on hold”.

Krobar "officially"designed the very simple "Alaska Fund Trust" website, as Palingates reported in January 2010.

Krobar Alaska Fund Trust - screenshot

Apart from that, we can only take guesses. We don't know whether Krobar also designed the SarahPAC website, but in any case, there has been nothing updated on either the SarahPAC website, nor has there been anything new on the Alaska Fund Trust site either.

Nothing has changed, they are both exactly as they were when they were originally started. In looking into what Mr. Kurt Robar, the owner of "Krobar Studios" has done, I've discovered that his own website is and has been "under construction" for at least since the last report for Sarah PAC came out.

No new website for the PAC or any political move that Sarah might have planned has been unveiled up until now. If the development of a new website was being paid for by PAC money, then it should be related to the PAC or Palin as a politician, yet nothing is available.

So, 6 & 1/2 months after the last payment was made to Krobar Studios there are no improvements made to either SarahPAC or the Alaska Fund Trust websites. The website for the Alaska Fund Trust should not be paid for out of PAC money anyhow considering it is a fund for Sarah Palin's personal not political use! In addition, no new website has been unveiled, and yet Mr. Kurt Robar was paid over $50,000.00 for 5 weeks of work? For what?

In looking into website design and development, I’ve found a couple of places which give some estimates as to what it would cost for that to be done for you.

From we are given these numbers:

Average Hourly Rates
Student/Offshore $15 - $30/hour

Freelancer/Company $25 - $75

Expert Consultant $50 - $250

Professional Firm $75 - $200

Then, on top of that, they offer an average cost guide:

Average Cost Guide

Logo Design:
$100 - $250+ (Student or Offshore)
$250 - $1000+ (Professional Designer)

Basic Brochure Website:
$500 - $1000+ (Student / Offshore)
$1500 - $5000+ (Professional Designer)

E-Commerce Website:
$1000 - $5,000+ (Outsourced Offshore)
$2000 - $10,000+ (Experienced Developer)

Custom Database / Interactive Website:
$1500 - $15,000+ (Offshore)
$2500 - $25,000+ (Experienced Developer)

Another example is given from 720Media:

What is the average cost to design, develop, maintain a small business website?


Small – $500 – $1,500 (about 5 – 10 pages)
Medium – $1,500 – $2,500 (about 10 – 25 pages)
Large – $3,500+ (usually 35 or more pages)

We serve clients throughout the country, and we have been voted best web design in Colorado Springs. From small to large projects, you’ll receive a web solution tailored to meet your needs.


So as you can see the price range is very different depending on whom you go to, and what your needs are going to be but it seems that Mr. Kurt Robar of Krobar Studios charges quite a bit more then even the highest estimates I could find. In addition, neither the Alaska Fund Trust website nor the SarahPAC website is what you could call a high end website design. They are very simple and basic.

I next looked into how long it normally takes to design a website, and after some searching found that there are a number of things to take into consideration when asking that question, but the ezinearticles website gave the most easily understood and basic answer:

* The template design

The main work for a website designer comes upfront with the template design. That's when they produce design ideas for the look and shape of your whole website. This part of the process can become costly in time, money and patience reserves if you haven't really thought through what you want in advance. But if you can offer examples of your preferred style and page layout, this will speed things up tremendously. As will your willingness to provide immediate feedback on the latest template version.

A template design that runs smoothly is perfectly achievable in a day or two. But only when all your preparation has been done in advance and communication lines are constantly open between you and your designer. This also assumes that your designer is focusing on your website and your website only. In my experience, template designs tend to take something more like a week to 10 days.

* The roll-out

Once the template design is in place, it's a question of rolling out all the pages of your website. This is the point at which your copy needs to be done and dusted. Depending on the level of simplicity or intricacy of your template design, and the number of pages that need to be rolled out, this will generally take between a couple of days and a couple of weeks to complete.
So what is the answer to the question: how long does it really take to design a website? Of course the answer has to be: it depends! But if you are well prepared and your planned website consists of only a few pages, it is entirely achievable to design and build a website within a couple of weeks.


So another question came to mind when looking at the payments made to Krobar Studios. How are website designs usually billed? We see that there were three payments made within a months time, and yet we have seen nothing that warrants those kinds of payments.

I found the best answer again at Ezinearticles:

How will I be billed?

There are a couple of common ways to bill; one is to require half up front and half on delivery of the project. Let's say that the grand total of your project is $2000.00 before any work could be initiated you would be required to put down 50%. The other 50% is due after the agreed upon scope of work is completed. Other variations can be a 50% upfront, 25% on first set of deliverables, and the final 25% on project completion.

Another way is to be billed hourly. Being billed hourly seems to be the less popular way when getting a website developed. Most of the time billing hourly comes into play when providing advice or after a project runs longer than expected. Monthly fees usually occur with web hosting packages or if you agree to some type of maintenance plan.

So let’s just assume that the normal billing for a website design is as suggested that 50% is paid upfront, with follow up payments of 25% for the first set of deliverables and the final 25% paid out on completion of the project. That would suggest that the website design was completed by Mr K. Robar on September 30, 2009 as that is when the final payment was made (and that is giving leeway by suggesting that they made the final payment on the day of completion rather than paying the bill after completion was done and being billed after the fact).

Another thing to pay attention to with the idea that payments are made in 3 installments of 50%, 25%, & 25%, is that the payments do not reflect that kind of a breakdown at all. In actuality the payments made are broken down into more of a 33% 33% 33% payments, as $51,405.00 divided by 3 = $17,135.00, so that is more in tune with a payment broken down into three parts.

Now if instead Krobar Studios was charging by the hour to design a website, and lets say was charging $200 hourly in order to do so (that is on the high end of the scale) that comes to 257 and one quarter hours. That translates to 40 hours a week for 6.43 weeks. That seems unlikely as that would suggest that Mr Robar dedicated himself to this sole project for a month and a half, working 9 to 5 every single day for 6 and ½ weeks dedicating himself to this lone project. Again, it seems unlikely.

So where is this $50,000.00 website? It must be stunningly fantastic because even the high end of pricing I found only offered an estimate of $25,000.00 for a custom database with an interactive website, done by an experienced developer, and Mr Robar was paid more than double that.

Yet here we are as I said previously 6 and a half months later and nothing to show for it.

So in doing some searching on Mr. Robar, I found some history on him, which gives a better understanding of his work history, among other things.

Krobar Studios
1717 Talkeetna StAnchorage, AK 99508-3244
(907) xxx-xxxx


(has been and continues to be under construction since the last PAC report was filed and I initially looked up the site)

Kurt Robar’s Experience:

• Creative Guru
krobar (Sole Proprietorship)
(Sole Proprietorship; Animation industry)
September 2002 — Present (7 years 8 months)

• Owner
krobar (Sole Proprietorship)
(Sole Proprietorship; Media Production industry)
September 2002 — Present (7 years 8 months)

• Editor/Videographer/Graphic Artist
(Privately Held; 11-50 employees; Broadcast Media industry)
1996 — September 2002 (6 years )

• Editor/Videographer/Graphic Artist
KTBY Broadcasting
(Media Production industry)
1996 — 2002 (6 years )

• Production Assistant/MCO
(Privately Held; 51-200 employees; Broadcast Media industry)
1994 — 1996 (2 years )

• Production Assistant
(Privately Held; 11-50 employees; Broadcast Media industry)
1993 — 1994 (1 year )

• Graphic Artist/Production/MCO
(Privately Held; 11-50 employees; Broadcast Media industry)
1987 — 1990 (3 years )

He is also on Facebook.

He has a twitter account but has not used it in 6 months.

Kurt's "About Me" on Kissageek:

(it is not dated so I don't know when this was put up and whether is out of date information)

Kurt Robar is a kissable geek. Born and raised in Anchorage Alaska, and spent a stint in Texas. Worked for several broadcast television stations across the TV dial, including CBS 11 KTVA, Fox 6 KIDY, ABC 3 KIII, UPN 5 KYES, and Fox 4 KTBY. He now owns and operates krobar™, a motion graphics and design company based in Anchorage Alaska that handles a variety of projects including web design (X/HTML, Flash, PHP, MySQL, Perl), 3D animation (Maya, EIAS, Lightwave), motion graphics and visual effects (After Effects, Motion, Shake), and editing for film, video, and the web (Final Cut Pro, Avid, Media 100).

This is rough, I know. I’ll update it soon, or more likely ask my incredibly talented writer-fiancé to “help” me.


One theory I have been tossing around is that Sarah is planning on running for office again and that this website has been set up for that purpose, and they are waiting to unveil it when she announces that she is indeed planning on running for the job as President of the United States. That is the most logical conclusion I can come up with that doesn’t involve dirty dealings with Mr Kurt Robar who is to the best of my knowledge an “innocent” if you will, in all of this.

Now I could be wrong, but there is something very seriously wrong with a political action committee paying out that kind of money with nothing to show for it.

Sunday, 28 March 2010

Message to Kristan Cole: It's time to release the records of Sarah Palin's Alaska Fund Trust! - UPDATE!

John McCain recently had a great idea!

"When will Hayworth release the names of his Secret Abramoff Trust Fund donors?"

Well, we don't know the answer either, and we don't really care who has donated to teabagger Hayworth.

But John inspired us and we thought that we at Palingates should have a clock, too!

Why? Because Sarah Palin's best friend Kristan Cheryl Cole is now 249 days overdue with disclosing "the contributions as well as the amounts and categories of expenses" of the "Alaska Fund Trust", Sarah's "legal defense fund". Kristan Cole is the trustee of this fund, and she is obliged to make the disclosure on a quarterly basis, according to the Trust Agreement -from the FAQ:

"8. Will there be any disclosure of contributions and expenses?

Yes. The Trustee will disclose on a quarterly basis the contributions as well as categories of expenses with amounts."

The Alaska Fund Trust was set up on April 22, 2009. The first report was therefore due on July 23, 2009. That's when we start our sweet clock:

Coincidentally, Kristan Cole made a public statement on July 22, 2009 - but this statement had nothing to do with her obligation to release the quarterly report.

Kristan Cole was forced to speak in public after the report of the attorney Thomas Daniel was leaked to the media. He was the investigator for the Alaska Personnel Board during the investigation of Kim Chatman's ethics complaint. Kristan Cole denied that Palin was "involved" in the Alaska Trust Fund. Sure! I think we believe in the Easter bunny as well! Back in July 2009, Mudflats published an excellent article questioning these statements of Kristan Cole.

Investigator Daniel reported that there is "probable cause to believe Palin used or attempted to use her official position for personal gain because she authorized the creation of the trust as the "official" legal defense fund." Download Daniel's original report HERE.

Since then - silence!

However, it's worth to take a closer look at the Alaska Trust Fund again.

It has been noted before that Sarah's practical "Legal Defense Fund" is in fact nothing more than a handy slush-fund for her and her family. The "Trust Agreement" leaves no open questions in this respect:

"3. Rights of Withdrawal

a) Each of the beneficiaries of this trust, shall, in each calendar year, have an absolute and unrestricted power to withdraw from this Trust up to the lesser of the total additions made to this Trust during each calendar year or an amount in cash or other property (including the cash value of life insurance policies, if no other cash or property is available) equal the lesser of the total additions made to this Trust during each calendar year, divided equally among such beneficiaries, or an amount in cash or other property (including the cash value of life insurance policies, if no other cash or property is available) equal to the maximum amount which qualifies for the Federal Gift Tax exclusion allowed by Section 2503(b) of the Code (currently $13,000 per donor, but such amount shall be adjusted to provide the maximum amount excludable) presuming that a donor's spouse, if any, has consented to treat any such eligible gifts as being made one-half by such donor and one-half by such donor's spouse. The holder(s) of such power are hereinafter referred to as "Donee". Except as otherwise provided herein, said power of withdrawal shall not be cumulative from year to year, must be exercised separately for each calendar year in which any such addition or additions are made, and shall be exercisable only by written notice to Trustee of the amount Donee wishes to withdraw, but no purpose for said withdrawal need be shown.

4. Beneficiary.

The beneficiaries of this Trust shall be SARAH PALIN. In addition, the class of potential beneficiaries shall include any "Covered Individual. For purposes hereof, a "Covered Individual shall be any other person determined by the Trustee, in the Trustee's sole and absolute discretion, to (i) hold a "covered staff' position within SARAH PALIN's administration and/or an employee in the office of the Governor of the State of Alaska; and (ii) hold a covered relationship with SARAH PALIN, including without limitation, a family member, such as a parent, spouse, child, grandchild, sibling and other close family relationship. Notwithstanding anything contained herein to the contrary, in no event shall anyone other than the Trustee exercise control over the Trust property and, in no event shall any beneficiary receive tangible or intangible benefit from the Trust other than such benefit that is incident to or may have arisen out of the defraying, payment, or satisfaction of expenses as provided herein."

So: Sarah's whole family and other people can be granted to right to withdraw money - and "no purpose for the withdrawal need to be shown". How useful! A grifters dream. Regina published a detailed article about this topic on Palingates in July 2009 and about possible criminal consequences, which is worth to be revisited. Back then, Regina came to the conclusion:

"The website soliciting donations states that the money raised will be used only to pay certain legal expenses. The agreement says no such thing. The website states the money cannot be used for personal purposes. The agreement contains a clause that says otherwise."

So where are the quarterly reports? Kristan Cole doesn't need the permission of anybody else to release the reports, the "Trust Agreement" is clear in this respect:

"The Trustee is authorized and directed to release the amounts and categories of expenditures for the benefit of any beneficiary hereunder and the public on a quarterly basis."

Kristan Cheryl Cole: What are you waiting for?

Also: What happened to Kim Chatman's ethics complaint? Since July 2009, the public has heard nothing with regard to the outcome of the ethics complaint, despite the grave concerns of investigator Thomas Daniel. Do we need another clock?

Investigator Thomas Daniel expressed grave concerns in his report about the choice of Kristan Cole to become the Trustee:

Alaska Fund Trust - Daniel report screenshot Kristan Cole


In addition, something else caught our eye.

In FAQ of the Trust, we also read:

"10. Where does the unspent money go?

Once the purposes of the Trust no longer exist, the Trustee, in her sole discretion, will donate unspent funds to qualified 501 (c)(3) organizations."

So, we asked ourselves: What exactly is a "501(c)(3) organization"?

Wikipedia knows - the general definition:

"Colloquially, a 501(c) organization or simply "a 501(c)" is a tax-exempt, nonprofit corporation or association. Section 501(c) of the United States Internal Revenue Code (26 U.S.C. § 501(c)), provides that 26 types of nonprofit organizations are exempt from some federal income taxes. Sections 503 through 505 set out the requirements for attaining such exemptions. Many states refer to Section 501(c) for definitions of organizations exempt from state taxation as well."

501(c)(3) in particular means: "Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations"

We found this extremely interesting - and I will tell you why: We recently learned from a reliable source in Alaska that the Palins set up an educational fund for Tripp, and they are directing some of their income to this fund - for example the $ 100,000 that Bristol received for her cover story in "In Touch" magazine! Our information is that this fund is supposed to pay Tripp's college/university expenses in the future.

Bristol Palin "In Touch Weekly" cover story

So - can it be that some of the money of the Alaskan Fund Trust will eventually go in the trust for Tripp or in similar channels that the Palins have created? After all, they are very creative regarding their money affairs, with the invaluable assistance of Sarah's busy lawyer Thomas Van Flein, who is the "registered agent" of Sarah's mystery company "Pie Spy" as well as of Bristol's mystery company "BSMP".

EDIT: We just learned that 501(c)(3) can only benefit an organization, therefore the theory that it could benefit Tripp's educational fund is apparently not valid. Many thanks to our reader "AuntieRuth"!

Our second theory is, by the way, that Sarah Palin will eventually set up her own charitable organization which will then receive the money. ;-)

Kristan Cole, publish the reports! After all, you have nothing to hide, right?



Our reader "mxm" has left a very interesting comment, which I would like to add to the post for the discussion. I would also like to point out that the Alaska Trust Fund is still accepting donations via PayPal (some of our readers made test donations today via PayPal - it worked!). Due to the lack of information and disclosure, we can only speculate what the current situation is with the Alaska Fund Trust. However, we do have Kristan Cole's own statement from July 22, 2009, in which she says:

"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."

Here is the comment by "mxm":

Kristan Cole is the sole Trustee, and as such she made commitments to the donors to provide quarterly reports. Anything related to trust fund use is under the sole discretion of Trustee Cole. As she has not released any reports in the nearly 12 month duration of the the trust, one has to search out sources of information related to the AFT cash flow. This is what I have found, 2 critical pieces of information:

(1) The bots conducted a webathon for the fund, and reported raising in excess of $115,000.

"You have already achieved 23% of our goal to retire $500,000 in legal bills that Governor Palin is held personally responsible ..."

(2) SarahPAC paid some interesting legal invoices.

The Alaska legal firm Clapp, Peterson, Van Flein, Tiemessen submitted 3 invoices to the PAC.

Legal Services, Political Services, June

Legal Services, September

Legal Services November

Attorneys with Clapp, Peterson, Van Flein, and Tiemessen must have a greater degree of PAC and political experience than the consultants and specialized attorneys Sarah Palin paid to advise her PAC. The firm was paid $65,000 in December 2009.

Diane Cooley provided legal services to the PAC and was paid $4,060.

Baker & Hostetler provided legal services to the PAC and was paid $13,500.

From these two facts, I surmise that the AFT is either frozen or broke. If frozen, as a result of the yet unresolved ethics complaint, then it may hold at least $115,000. If the AFT is broke, and it was used to pay Palin's self-claimed legal bills of $500,000, then the PAC was tapped to pay some more personal legal bills.



In this post, we didn't mention so far that there were actually two ethics complaints filed against Sarah Palin because of the Alaska Fund Trust. It was not only Kim Chatman who filed a complaint, but Andree McLeod filed a second complaint in December 2009. You can download the full text of Andree's complaint HERE.

The outcome of the second complaint is unknown as well - nobody knows what's going on. No information has been given to the public.

Although Sarah Palin has "left the building", her hand-picked appointments like her chief of staff, Attorney General, and every commissioner have not. They are still playing fast and loose with the Alaska Executive Branch Ethics Act, and continue to protect and defend Palin’s political interests when it comes to complaints regarding her "legal defense fund".

Monday, 7 December 2009

Andree McLeod files new ethics complaint regarding Sarah Palin's "Alaska Fund Trust"

The news came in just a few minutes ago! Andree McLeod has filed a new ethics complaint, and this time the topic is particularly delicate: She challenges Sarah Palin's legal defense fund, the so-called "Alaska Fund Trust" (we call it "slush-fund").

This brings back fond memories of the most devastating ethics complaint against Sarah Palin to date, in which earlier this year State Personnel Board investigator Thomas Daniel found there is probable cause to believe Palin used or attempted to use her official position for personal gain (see HERE and HERE). It has even been speculated that this ethics complaint, which was filed by Kim Chatman, could have contributed to Sarah Palin quitting her job as Governor - just today for example by Andrew Sullivan on the Daily Dish!


Download of Andree McLeod's ethics complaint: Here is the new download link!

The press release by Andree McLeod reads:

Anchorage, Alaska : An ethics complaint has been filed with the attorney general’s office by Alaska resident and registered Republican Andrée McLeod charging ex-governor Sarah Palin with continued violations of the Alaska Executive Branch Ethics Act.

The attached complaint relates to Palin’s already established unethical legal defense fund. A July 21, 2009 independent investigation report that relates to this same fund already found probable cause that Palin violated the Alaska Executive Branch Ethics Act while she abused her position for personal gain and secured unwarranted benefits for herself, her family and other undisclosed public officials.

“Palin continues to compromise the integrity of our Governor’s Office,” Andrée McLeod says. “She continues to misuse her official position even though she was told it is wrong to do.”

The Alaska Fund Trust website, which still accepts contributions, describes her as the current governor of Alaska , even though Palin quit last July.

McLeod continued, “What we have is the epitome of a culture of corruption. Why do public officials permit Palin to get away with bad behavior? Why does justice not prevail on the side of the people in the follow through of what has already been established as an unscrupulous pot of money? We still don’t know how much has been collected during her term and whose been paid from the fund? Why does the administration continue to protect and defend Sarah Palin, even when she’s caught, red-handed, selling out the Office of the Governor?”

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