State Treasurer Dean Martin and former Treasurer David Petersen might find themselves on the witness stand if the state does not settle whistleblower claims filed months ago by Petersen’s top two aides, Arizona Capitol Times has learned.
Former Chief Deputy Treasurer Blaine Vance and former Chief of Staff Tony Malaj will combine their $5.6 million damage claims against the state and have added wrongful termination claims against Martin because he did not retain them when he took over as treasurer in January, sources close to the case say.
The state, through the Department of Administration (DOA), has taken no final action on separate claims by Vance and Malaj, who allege they suffered recriminations from Petersen because they cooperated in an attorney general’s investigation of Petersen’s dealings with a character education organization and other allegations. The result was a misdemeanor charge against Petersen and eventually his resignation as part of a plea bargain that places him under supervised probation.
The state did not formally respond to the whistleblower claims within a statutory period of time, which means Vance and Malaj may now take their claims to Superior Court with a civil lawsuit.
If the state does not settle to the satisfaction of Vance and Malaj within a couple of weeks, sources say, look for the case to go to court. If it goes to trial, both Petersen and Martin could find themselves in the witness chair before a jury that most likely would hear the airing of a lot of dirty laundry.
Documents obtained from DOA by Arizona Capitol Times under the state’s open records law show Petersen’s last months in office were dominated by in-fighting, low staff morale and high employee turnover.