Voices from the Flats – Undisclosed: What Palin’s Financial Report Left Out
Blue Oasis
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Sarah Palin filed her final POFD (Public Officer Financial Disclosure) on time according to APOC (Alaska Public Offices Commission) rules.
However, Palin has proven herself to be selective as to which rules she chooses to follow and how completely she follows them.
For example, we’ve seen nothing “disclosed” nor have we heard anything about Palin’s AK Fund Trust (for which her website is still collecting money) since the summer revelation that Investigator Daniel found Palin cannot spend the Fund Trust without probably violating a pesky Statute or two. While the Personnel Board is a separate issue from APOC, it is still important to note that the Board IS NOT following the Executive Branch Ethics Act. How do we know?
…the attorney general shall initiate formal proceedings by serving a copy of an accusation upon the subject of the accusation. The accusation shall specifically set out the alleged violation. After service, the accusation is a public document open to inspection. Except as provided in AS 39.52.370(c), all subsequent proceedings are open to the public.
1) Palin “blew off” Investigator Daniel in July. By sometime in August, he should have “served a copy of an accusation” upon Palin. If he had, the Personnel Board would no longer be able to hide behind the “confidentiality” claim, as all further proceedings would be public.
2) If Palin and the Board, as Debra English may have hinted they were trying to do during the last Personnel Board Meeting, had reached a “settlement,” that too would become public information and would have required an announcement.
According to the ADN, Kristan Cole (fund trustee) did not respond to their questions. Back in July, she said the fund would be “frozen” until the legal issues were “resolved.”
Readers may remember that an East Coast lawyer did an exhaustive analysis of the “trust agreement” that Palin’s people have out for inspection on the AK Fund Trust website:
There is NOTHING in the official purpose of the AFT related to legal defense or legal proceedings or ethics complaints. In fact, the purpose of the trust is for any expense at all incurred by Sarah Palin “as a result of the fact that she is Governor . . . or as a result of the performance of her duties as Governor.” Those are the only limitations instilled by the purpose clause.
So the purpose of the AFT is to collect money for…basically anything and everything, short of overt criminal activity. This includes legal expenses, of course, along with everything else under the sun. It also covers her family and staff, as well as “any other person determined by the Trustee.”
Like I said, the Personnel Board is a separate issue from APOC. However, Why was this trust not listed on her APOC Financial Disclosure?
Trusts valued at more than $1,000 must be identified on the Public Officer’s Financial Disclosure (POFD). Palin didn’t bother to list a Trust containing hundreds of thousands of dollars designated for her and her family’s personal use.
So, what is the future of this debacle?
It seems the Personnel Board is paralyzed, I’m guessing by fear: Palin won’t budge and give up the money and they are loathe to drag her as a national figure back to Alaska for a hearing that could forever damage any political aspirations. After all, she keeps making those erroneous claims that she cleans up corruption. (Also, it seems that everyone and their friggin’ cat thinks that Palin is going to “take them with her” when she makes it big.)
The AK Fund Trust faces other hurdles. Again, according to legal analysis:
The AFT’s purpose, as ambiguous as it may be, is clear about one thing – the purpose was set up for Palin “as Governor.” As soon as she resigns, the trust loses its purpose. Even if she drags her feet and says that the funds are being used for expenses “as a result of” her being Governor, that excuse will only last for so long. For example, even if she says that moving expenses and consulting lawyers about new ethics complaints and a hiring a masseuse to relieve her stress all resulted from her actions as Governor, eventually, at some point in the future when her excuses run out, the AFT will have to be dissolved and the funds donated. I originally thought that Cole could just set up a new trust; but according to the trust language, the funds would have to be given away to charity.
So, since she is no longer Governor, they will have to dissolve the Trust and donate it to charity. However, I doubt they can do anything with the money until the legal issues are “resolved.”
And now we have a brand new business reported on the Disclosure form and started by Palin/Stapleton–”Pie Spy, LLC.” Paperwork claims it will be a “marketing business” geared towards “Services for the Elderly and Persons with Disabilities.”
I have speculated all along that:
1) Palin quit when she found out she couldn’t access the AK Fund Trust in order to start making money to pay her legal debts
2) Palin has absolutely no intention of letting go of that money whether or not it’s legal, because,
3) If the Personnel Board does not move forward, she can just let the money sit there for a very short statute of limitations of two years (from July 26th)…and;
4) She can simply donate the Trust to whatever “friendly” 501C3 happens to be around **coughSamaritan’sPursecough** who would probably be only too willing to make donations to a business geared towards “the elderly and disabled.” 501C3 donations are not public information.
Unless, of course, they can actually turn the LLC into a 501C3.
Of course, this is only speculation…
(next installment…Sarah Palin’s letter to APOC contradicts her Financial Disclosure form.)
Once again Xgino method(s) of money madness have left me banging head on desk.
Spy Pie or creating a charitable trust for disabled son, for ongoing & future care expenses?
When all else fails…… keep following the money
(((…sigh….)))
Has anyone ever complied with these laws? Is there actually a process to enforce them? It seems rather silly.
She just seems to get away with everything. It is so frustrating.
Thanks Celtic Diva for staying on top of this rather aggravating bad behavior from Scarah.
Will no one in Alaska hold her accountable other than bloggers!!! Those in authority should be ashamed! Really. And they will have their own fallout from protecting her, looking the other direction and flat out screwing up on their jobs. The longer they let this go on, the worse it will look. It’s pitiful and there won’t be a whole lot of sympathy when it plays out.
Do people really think they can cover up truth? Didn’t what happen to Bill Allen today prove illegal activities do not stay under wraps forever?
With all ethical and legal problems with this aside, wouldn’t the IRS have a problem with this scenerio? I hope someone digs into this and follows that money very closely. The AFT sounds totally bogus to me and I know nothing about financial law and how “funds” work. If it is apparent to someone like me, why aren’t any “experts” cracking down on this? Oh….and that Pie Spy thing….is that where she is going to donate the money when the AFT is dissolved?
An illegal trust fund will end up in the hands of a judge. They will likely return the money to the donors. They can’t use the money for any other purpose then is claimed in the trust.
Like Deep Throat said, follow the money- into Sarah’s pocket, tax free.
There has to be a way that this sleezy woman will be held accountable for all that she had done. I can’t believe that she is still getting away with doing whatever she wants with no consequences.
Why isn’t all of Alaska in an uproar over this? You’d think she was the head of some mafia family…I don’t think so. It’s hard for me to believe this former flute player has that much influence. She’s a quitter. Not a quality that many would find admirable. Maybe Alaskans for Truth, need to reorganize, hold some rallys, spread the truth. Are Alaskans going to let Palin, Cole, and Stapleton, bring them to their knees. Why aren’t community leaders and legislators, demanding action? I know that the aforementioned three, are not the best that Alaska has. Folks up there need to start kicking some ass.
Linda – your “speculation” seems spot on to me – you connected the dots in a very logical way. And, while we are on the topic of the financial report, this really gets me upset: She was PAID over $1600 (by Samaritan’s Purse) to go to the flooded Villages with the cookies and Jesus pamplets. Huh? Isn’t it her JOB as Governor to go inspect the damage? Many well-meaning Christians donated to Samaritan’s Purse to help those poor people in need – and their money went to PAY Palin to fly over there? I hope I am misunderstanding that part of the disclosure, if so I apologize.
Seems Palin is running into more money trouble in Iowa. MSNBC is doing the story right now on KO.
Iowans question Palin’s $100K fee
‘If somebody tells me they want me to pay an appearance fee, it tells me they’re not very serious about running for president,’ said Ed Failor, Jr., president of Iowans for Tax Relief and an influential GOP insider.”
http://firstread.msnbc.msn.com/archive/2009/10/29/2112274.aspx
Linda, thank you for your diligence.
In my experience, the IRS is not stupid; they may move slowly, but once on their “radar”, you will be watched…and your actions carefully digested.
I believe Miss Quittypants is on their radar.
Still hoping for justice for all.
This woman is unbelievable….she lies, cheats and steals and no one seems to be make her accountable. I fault our Alaska ‘system’ which just makes me sick in retrospect – i.e. Parnell, the Personnel Board, our Legislature, etc. This woman was found by our Legislature to be ‘unethical’ but nothing was done about that decision and she has continued to move along in her corrupt way since then. I would never have survived in the private sector had I done things she has on the “government” side. I would have been fired! What does that tell us? We are a screwed up mess!
That she seems to get away with everything is so frustrating. But there might be an upside: the more she gets away with , the more invinsible she’ll think she is. She’ll get cocky, take bigger risks, and get careless until she finally hangs herself. All we have to do is pass the popcorn and wait.
15 laprofesora Says:
October 29th, 2009 at 4:34 PM
That she seems to get away with everything is so frustrating. But there might be an upside: the more she gets away with , the more invinsible she’ll think she is. She’ll get cocky, take bigger risks, and get careless until she finally hangs herself. All we have to do is pass the popcorn and wait.
***********************************************************************************Palin has had her way since her days as a Wasilla council member. It’s way pass popcorn time, it’s jail time. She was crooked then, she’s a bigger crook today.
When was the AFT and Pie in the Sky with Diamonds started? At the same time? Possible this was the plan all along, donate the funds to the non profit pie? Doesn’t sound illegal, but it sure does sound dishonest for all those that donated to her.
Nothing will happen until and unless someone from Alaska files and serves a Writ of Mandamus upon all of the public entities. Then, and only then, will the process move forward.
What astounds me is this woman has little or no intellect so I don’t believe she is smarter than the system to come up with these crazy schemes. I think the system is lax and corrupt and lets all of this slide. People in Alaska and the IRS really need to start holding her feet to the fire and stop this craziness.
BTW, Linda….great post. I neglected to give you kudos in my previous post. I was too distracted by my unbelief and disgust. You lay it out so perfectly and logically. I hope you and the rest of the brave Alaskan bloggers are watching your backs! After this week, she and her camp are most likely not in the best of spirits.
Anyone remember: many years ago the IRS dragged a couple from their old VW Bug because they owed a small amount and the car was seized. I guess their fate only applies to ordinary people, not politicians.
Donations to 501(c)(3)’s aren’t public BUT recepit of money is. All 501(c)(3) organizations must file 1099′s showing where they got their money.
Also, the IRS states the following requirements that would make it unlikely she could consider PieSpy a charity if any of her trust dollars showed up on their 1099′s and if she managed PieSpy while campaigning for any political policy or office (I really hope she tries, though):
“To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization’s net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.
Section 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct. For a detailed discussion, see Political and Lobbying Activities. For more information about lobbying activities by charities, see the article Lobbying Issues; for more information about political activities of charities, see the FY-2002 CPE topic Election Year Issues.”
Sarah’s passed the half way mark of the average life span, and she’s nuts.
Therefore she can donate the money to herself as being elderly and disabled.
Or more likely the Spy Pie thing is going to be a shell organization that will receive the trust’s donation, and pay it to Sarah for consulting fees, or lobbing fees or toilet paper or whatever she can dream up.
There must be people who aren’t afraid of Palin who are willing to hold her accountable. I just don’t get it. What power does she have over these people now? Except for those wanting to stay with her when she makes it big, I can’t understand wanting to cover for her now that she deserted the state for her own profit.
Between this and the whole missing email situation…..something needs to be done….NOW. There has to be some higher powers in Alaska who are looking into these situations.
Xgine is a gamer.
She is like a fox always changing direction and leaving many trails.
Her good looks have blinded many critical eyes in the past, until AKM could take no more.(-:
She is taking advantage of every tax and business deduction allowable by law and then sum.
Her winks and blinks, walks and talks, glasses and hairdos, dolls and designer cloths, have marketed her image to a base that is a disgrace. Yet, she continues to haunt and taunt, come and go, and put on a strange virtual reality show.
The Palin wheel is a spinning, and she keeps taking in the winning.
C. Diva~
Three questions that I’ve pondered:
1. Did she “blow off” Investigator Daniel…or could she have paid him off to somehow “redact” his findings so that it had no real legal implication ~ and simply disappear…never to be heard from again?
2. Who’s to say that AFT funds were actually frozen, especially considering they’re still soliciting ~ and the fact the K. Cole has been mum about the details?
3. Are we to presume that the XGINO was not paid for the “Runner’s World Spread”?
Oh, and one more: Will this farce ever end?
Nothing will change until there is some public pressure and outing those involved with covering Palin’s tracks.
@22 Team Alaska—-Very well said. I agree, I agree!!!!!!
“Oh what a tangled web we weave, when first we practice to deceive”. Now if only she was any good at it. Snow cones from the iceberg, anyone?
15 laprofesora Says:
But there might be an upside: the more she gets away with , the more invinsible she’ll think she is. She’ll get cocky, take bigger risks, and get careless until she finally hangs herself. All we have to do is pass the popcorn and wait.
She and Dubhya and Sanford et al. think they are chosen by God to do the things they do. Since they are chosen then getting away with it is just God’s will, God protecting them and guiding them.
Lol Gramiam!!
Team Alaska @22, I agree with trisha @25, me too.
Thank you for a great post, Celtic Diva. I have never been able to sign up to post at your blog. Glad I have the opportunity here to say job well done!
I did think it was odd her husband was not listed as a co-owner of that new company. I think it said it was to be managed by the single member.
Thanks, AKM, for all your good work, too!
I found it odd since Palin has so much money, that she does her own taxes (hand written) and such, instead of hiring a service to do it for her (neatly type written). But I think I know the reason now.
I just watched KO show and they discussed the Palin Iowa problem. It’s the same darn story…..”miscommunication”…or so they say. I call it lying, they seem to call it something else.
The group that wants her to Iowa has been raising money to bring her to Iowa, and they will not admit or deny that the Palin camp was willing to “think about it” for cold hard cash.
Of course, Palin’s team throws another group under the bus. Meg was quoted as saying that this conservative group wanted to sweeten the pot so they thought offering money would change her mind about coming…
OUCH! I’m amazed that these dumbo’s keep asking her to these events even though Palin’s camp throws them under the bus.
Group that wants to bring her to Iowa. Sorry….getting late.
Great article and very well stated and written Linda. I too joined your blog but have forgotten my password to post ,will have to find it,I write them all down it is just a matter of finding it.I usually come here first then go to your blog to check what is going on their kind of make the rounds when I have time. AKM I see you are taaking to heart the article about burn out .A very good Idea.
Yes Celtic — great post and continued dogging on the Palin money trail. I keep watch on your site several times a week, altho like others – haven’t been able to comment.
Guess I haven’t figured out the “sign up” process yet.
Also, too……the updated forms should be accessible, why in the world would she used outdated forms unless it benefited her. Somebody please check into that. If using outdated forms is the norm, well, that says things about efficiency and professionalism and it also leads one to wonder about her claims of ‘reform’. This whole disclosure business seems very slack and in real need of true reform and updating. How about closing the sloppy accounting loopholes on this Governor Parnell. The citizens of Alaska should be upset about this in your face abuse, what is wrong with them? They’re the boss, not the Governor.
I’ve been out of country for a while and went without news of anything. It was delightful! On my return I have been trying to catch up by reading the Mudflats and ALL discussions and am totally bleary eyed. My question is re: hidden funds, etc. Whatever happened to all the items donated to Sarah and family that were sitting around supposedly unopened? After leaving Ak. did she just keep all that stuff? I thought the state laws covered that too. State Law seems an oxymoron in Ak. Hope the IRS is watching-even tho’ politicals seem to be untouchable. Faithfulpup, aka Fortress etc
..part of the problem of chasing Sarah down is the Attorney General is appointed by the Govenor, not elected by, or answerable to the people of the State… I don’t know if the Alaskan legislature has the power to remove him, once they have confirmed the appointment. I doubt that Parnell will have enough cojones to direct him to investigate any of this; perhaps HE is the one that needs to feel the heat from Alaskan’s and the press on Sarah’s hijinks… He WILL be coming up for election soon…..
The stuff that goes on in this state would Never, EVER fly in any other state that has a larger and more engaged populace. Alaska is such a small pond that even the most ignorant, corrupt, and extremist yahoos can truly become big fish here. Sarah exemplifies that to a “T”.
@ #37: I LOVE your comment – “Alaska: Where State Law is an Oxymoron”. Somebody should make bumper stickers out of that one! LOL!
Sarah Palin is at best grossly incompetent and at worst an outright thief.
I don’t think AFT has filed the paperwork to be a 501(c)3– so it may not be a nonprofit. Anyone know?
Huge round of applause for Linda! Great Job! You research every detail, and you lay it all out in a logical well written format!
After everything that I have read about the toothless Alaskan political system, maybe this material belongs in the hands of the IRS. They don’t like dodgy deals. According to Mr. Lewis, they have taken a very dim view of things like people hiring all of their relatives for a family run business, paying them huge salaries and allowing big deductions for travel and other expenses. They have clamped down on that kind of thing.
They also take a dim view of so-called charities which are a means to funnel money to another place. There are some so-called charities where barely 30% of the funds actually end up in the charitable cause- the rest being spent on over-paid employees and excess expenses.
Yup, I vote for the IRS! (Don’t they have a finders fee??)
The only gutsy mavericks in Alaska are the bloggers.
Great job on reporting, Linda. Keep the fires burning on these issues.
…and where is the effing IRS?? They came after me two years ago…..erroneously….for a qustion on my inherited IRA. Threatening letters. The sky’s falling down. The earth as we know it will end. Not a word of apology when they realized their mistake. Meanwhile, Palin is waving around sloppy hand written nonsense which screams “Take my word for it, boys and girls!”
missed an eeeeeeeeeee ^^^ “qustion”=question
I second mae lewis @#42!!! And yes,…..they (the IRS) do have a finder’s fee.
A Writ of Mandamus would definitely force her hand
Hmmmmmm… what ever happened to the report that was supposed to come from AFT??? ( I can’t remember specifically, was it a quarterly report?)
Good one for the HuffPo !!!
Thanks AKM for letting C. Diva post here so we can discuss this issue.
I also noticed that C.Diva has posted the Part # 2 follow-up to this on her website. She points out in many places that Sarah and Todd have not even tried to be truthful. Not even close. It’s all laid out and has multiple Media sources that tell of LARGE amounts of money or sponsorship that Todd’s race team receives for Free and they don’t claim or document ANY of it.
If the authorities don’t act on this indisputable evidence… they need to be charged with something as well for being conspirators in this Sham.It really makes you sick that they are so blatant with these lies and documents.
Will they REALLY let her get away with… THIS..?
{ Somebody outside of AK needs to start an Investigation … don’t know who }
Check out what Diva has posted on her blog.
Indictments much?
A couple of things…I doubt that the ATF is a 501(c)3 because of its political nature. You can also search the IRS for charitable organizations and it’s not listed. Most 501(c)3′s are required to file Form 990 and if requested this must be made available for public inspection. They are also required to spend a certain amount of their income on their charitable purpose or they will eventually be taxed out of existence. They are also required to report all related party transactions.
The ATF appears to be set up as a Trust, and as such would be required to file Form 1041. This would not need to be made public unless the trust document called for it…trusts are governed by the trust document which should tell how the income is to be distributed and for what purposes…i.e. living expenses for a widow, educational expenses for grandchildren, or in this case stolen money for a grifter. The ATF tust document can be found here:
http://www.thealaskafundtrust.com/site/downloads/alaska_fund_trust.pdf
In a nutshell, if the trust was set up correctly and is legal (which appears to be questionable) then this document spells out how the trust must distribute its income. The income of the trust is reported to its beneficiaries via Form K-1 and they are required to pay taxes on it. The question that pops to my mind is whether the legal fees would be an expense to the trust, thereby reducing the income that could be dsitributed to the beneficiaries; or whether the legal fees would be an expense for the beneficiaries, in which case they may or may not be deductible, and would be reportable on their individual taxes on Form 1040. In the case of a salaried individual incurring the expense because of their job I would imagine that the deduction would then be subject to the 2% limitation on Schedule A for itemized deductions. In other words, McQuittyPants would have to report ALL of the money given to her by the trust as income and then would get to deduct her legal fees as an itemized deduction.
Obviously, if the expense was incurred because of illegal activities then it would not be deductible at all.
Also too, I believe if a trust does not distribute a certain amount of its income then it may be subject to an excise tax on the undistributed amount over a calculated percentage. (Take this all with a grain of salt…it’s been at least 5 years since I’ve done any trust returns.) Trusts are NOT tax exempt organizations.
There was an extensive discussion of this on the forum when the ATF was set up.
You are a great writer and researcher, Linda. Your information is thorough with references. Usually, what Lawyers like. But like others, I feel the Lawyer would need to be someone from the Outside of Alaska that
wouldn’t and couldn’t be easily influenced.
Like others, I visit your site. My thoughts are that the
information would do more if placed on a wider screen. For people to still consider, Palin, a honest person means that the information isn’t reaching enough people. You might want to think about going on television (National not local); sorry, but I don’t have much faith in the media, especially, the local media. You would have many viewers in the US and beyond.
Your efforts and concerns are legit. However, they are being ditched by your local Officials. The only way to really bring your efforts to fruition is to start bringing them ( your articles and Local Officials) to the Headlines. You worked hard and have actually PAID, the price . Dust off that information and give it into some fresh light.
Would be nice if you could be on Oprah after Palin’s interview. There are 2 sides to a story. Let yours be heard. Maybe you can have equal time like Palin, one hour, imagine what can be told!!
I think mainly the problem here is taxes. Todd wants his snowmachine racing income treated as business income so he can get the tax deductions on what he spends on what is really a hobby. But if you take a business loss too often for this sort of thing, that triggers an IRS audit.
Now, the sponsorship deal throws another iron in the fire. Todd can’t take off his taxes anything he gets for free AND has to declare as gifts (and pay tax on) amounts received in discounts, gear, clothing, travel/lodging over a certain amount, which I think is either $12,000 or $13,000 PER DONOR (which personally I think is way too high), and the Arctic Cat deal in 2008-2009 very conceivable exceeded that.
Now, throw into the fire the iron where your wife is governor and by law has to declare all this stuff.
This means paper trail from APOC disclosure forms to IRS tax returns should match.
We have both for previous years to examine, but I have a question: Since she WAS governor for all of 2008, does she have to disclose her 2008 taxes? She quit in 2009, so I’m pretty sure we’ll never see those.
I’m afraid to take what as legitimate business expenses (such as Business Use of Home) because I’m afraid that an auditor will find one little personal paper clip in the section I use as an business office and disallow all the expenses, yet these people haven’t been audited.
Thank you AKM for posting Linda’s work here and on Huff Po.
Thank you Linda for your endless work gathering documents, attending meetings, and all you do.
It’s times like this that the sheer size of this state stands in the way of more of us being able to do some of these things.
I hope you know how many of us are at your shoulder…
Thank you neighbor.
Freakout…………great information. Thanks!
Yet, the working class has yet to realize that Free Market manipulators and opportunists like Palin reap the benefits of colorful and blurry interpretations of value.
The Wall Street melt-down occurred because of HER way of thinking, wheeling and dealing – “It’s only unethical if you point it out.”
My god, the time and effort Alaskan bloggers put into investigation and dogged follow-through is humiliating for reporters. Or it should be.
Well done CD and AKM, question is, what does that joke of a personnel board, APOC and / or the legislature do with all these descrepancies? What about the legitimate press?
Was glad to see this story posted on HuffPo…but I’m wondering if they’re suppressing the comments over there? At any rate; great job ladies on getting the facts out and diligently wading through the muck of Alaskan politics. Remain ever-vigilant…for you have cast a light into many high stake areas of impropriety.