State Treasurer David Petersen asked two staff members in February if evidence of visits to pornographic Web sites could be detected on his computer, sources with direct knowledge of the event say.
The sources said the treasurer’s question came about two weeks after the Attorney General’s Office seized Mr. Petersen’s and other state computers and files in an investigation that concluded this week.
Mr. Petersen pleaded guilty Oct. 26 to a class 1 misdemeanor regarding his failure to disclose a $4,200 commission he received from the Character Training Institute for sales of its teaching materials. As part of the plea agreement reached with Attorney General Terry Goddard, Mr. Petersen must resign no later than Dec. 1, when sentencing is scheduled.
Mr. Petersen could not be reached for comment before Arizona Capitol Times deadline Oct. 26.
State law (A.R.S. 38-448) calls for discipline or dismissal of a state employee who “shall not knowingly use agency owned or agency leased computer equipment to access, download, print or store any information infrastructure files or services that depict nudity, sexual activity, sexual excitement or ultimate sexual acts as defined in section 13-3501.”
“I don’t know how if that applies to elected officials,” said Alan Ecker, spokesman for the Department of Administration.
Arizona Capitol Times requested logs of Mr. Petersen’s Web site visits under the state public records law, but was told they were not available.
“Per our technology team, as a matter of policy, the Arizona State Treasurer’s Office performs reactive monitoring [selective monitoring of individuals suspected of inappropriate use for a short period of time],” wrote Rhoda Bryce, office manager, in an e-mail response.
“Because of this, there are no log files existing that contain the information requested under this FOI [Freedom of Information] request. Additionally, the treasurer’s laptop was reviewed for web history information.
“While the Attorney General has the capability to recreate web history information utilizing forensic software, we are not in possession of any of this information,” she wrote.
The crime to which he pleaded carries a penalty of up to six months in jail and a maximum fine of $2,500, plus an 80 percent surcharge.
“There are no agreements as to sentencing, other than the state’s agreement that it will take no position on whether the defendant’s sentence includes a jail term,” the plea agreements states.
The agreement also says the state agrees not to file any other charged against Mr. Petersen regarding any crimes “he may have committed relating to other financial disclosure statements, an honorarium he received and any matter discovered or that should have been discovered by reviewing documents seized from the treasurer’s office.
Superior Court Judge James Keppel could find that the plea agreement is inappropriate, in which case all original charges would be reinstated.
Mr. Petersen was to report to a probation officer on Oct. 27.
Mr. Petersen’s state pension will not be affected his criminal case, Mr. Ecker said.
Meanwhile, Governor Napolitano said Oct. 25 she has two people in mind as temporary replacements for Mr. Petersen.
Candidates for the office are Republican Sen. Dean Martin and Democrat Rano Singh.
Legal woes continue
Mr. Petersen’s legal entanglements are far from over.
Chief Deputy Treasurer Blaine Vance filed a whistleblower action against his boss Oct. 26, asking for more than $2 million in damages. Like his colleague at treasury, Tony Malaj, Mr. Vance is seeking compensation for alleged reprisals taken against him by Mr. Petersen because he furnished information for the attorney general’s investigation.
The Arizona’s whistleblower law (A.R.S. 38-531 et seq.) provides that state employees who disclose matters of public concern are protected from retaliation by supervisory personnel.
A copy of Mr. Vance’s claim was not immediately available, but Arizona Capitol Times obtained a copy of Mr. Malaj’s notice of claim, which seeks $3.5 million in damages and lists 15 separate events that led to or were direct reprisals against him.
“Mr. Malaj has been deprived of his duties, publicly ridiculed by false statements asserting that Mr. Malaj is disloyal, incompetent and dishonest,” wrote his attorney, Jeffrey Arbetman.
“Mr. Malaj’s career in government has been damaged to such an extent that he will be unable to find a position in his chosen profession…” the claim states.
Mr. Malaj, who was stripped of his positions as chief of staff and spokesman for the agency, is paid $93,000 a year. Mr. Vance’s salary is $105,000, and Mr. Petersen is paid $70,000.
The claim alleges that Mr. Petersen last June told Mr. Vance that Mr. Malaj was “expendable.”
The state has 60 days from the filing of such claims to either settle or deny the claim. If no action is taken, the plaintiffs may file a lawsuit.
Mr. Petersen is represented in the whistleblower cases by Brad Gardner of the Udall Shumway law firm.
Official: Morale poor but investments are fine
Mr. Vance, Mr. Malaj and the Board of Investment, which oversees the state’s near $10 billion in investments, say that despite the continuing turmoil at treasury, the state’s money is begin well managed.
“If candidates are saying indeed that competency needs to be restored, I would refute that,” board member Stephen Barnes told The Arizona Daily Star. “We still have full confidence in how the office is handling state funds. We need a treasurer to step in and… restore the morale of the staff there.”
He added that there is a shortage of good people in the office and, “There needs to be some restaffing.”
In 2003, Rick Flaaen was fired from his job as city attorney in Glendale for viewing pornography on a city computer in his home. He sued the city for wrongful termination, and the case was settled out of court for an undisclosed amount.
Reporters Christian Palmer and Jim Small contributed to this article.