David Petersen

Angered by a newspaper editorial telling him to get back to work or quit, Treasurer David Petersen has been in his office more often, but causing upset there, according to two sources close to the situation.
Mr. Petersen, who is under investigation by the Attorney General’s Office for alleged fraud, theft and conflict of interest, has added an attorney to his staff in a part-time position to deal with personnel and financial issues.
And a woman who is mentioned in an attorney general search warrant filing, has returned to the Treasurer’s Office to work with attorney Don Dybus.
The loss of 10 senior employees since the investigation was announced in February, Mr. Petersen’s return to work and hiring the attorney have resulted in “turmoil,” the sources said.
Mr. Petersen, a Republican, was not available for comment.
He rarely was at his office for the two months following the seizure of files and computers in by investigators, who continue to examine travel records, documents regarding Mr. Petersen’s association with a character education organization and e-mails.
The treasurer has announced his will not seek re-election, and Mr. Dybus said he will work to help Mr. Petersen transition out of office, but that does not mean the treasurer will leave office before his term is up at the end of the year.
Mr. Dybus said he assisted Mr. Petersen in his transition into office in 2002 and will help him transition out, including solving personnel problems and ensuring that state and federal financial regulations and standards are met. He said he does not represent Mr. Petersen in his legal travails.
The Treasurer’s Office oversees $9 billion in cash and investments.
Rhoda Bryce, who served as Mr. Petersen’s campaign director, has returned to work, and will assist Mr. Dybus, who said she has the management skills needed for the transition.
Her previous work at the Treasurer’s Office, however, was in question, court filings state.
“She was hired to work three days per week on special projects designated by Petersen… but spends a lot of time in the office of Petersen,” the court documente stated.
Investigators were told Ms. Bryce called Citibank and solicited money for Character First!, a non-profit Oklahoma organization that paid Mr. Petersen commissions for his sale of training materials.
In a letter to Mr. Petersen that led to the investigation, former employee Wanda Simeona said she hoped Arizona taxpayers would “find out about your kids using your state computer, your friend Rhoda Bryce being caught using your computer in your office without supervision…”