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The Hush Money Agreement

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                                  Hush Money? (Updated)

Yesterday we broke the story about a $10,000 severance package that was quietly given to short time Public Safety Commissioner Chuck Kopp on his way out the door.

Kopp resigned after just two weeks on the job after public and media pressure about a prior sexual harassment complaint filed against him in 2005 refused to go away.   

Until we broke the story yesterday morning, the severance agreement was never mentioned by the Palin administration. In fact  it was not publicly known until the Attorney General was questioned about it at a later press conference.

AG Talis Colberg defended the severance pay by claiming that Kopp left a comfortable 19-year career on the Kenai Peninsula and took a job that lasted less than two weeks.

Colberg's explanation raises some questions.

First, the governor stated in the press on August 1 that she was surprised and disappointed to find out that Kopp had in fact been issued a letter of reprimand. Before it came out in the media, Palin stood firmly behind Kopp. So why, if this whole downfall was caused by Kopp being less than forthcoming about the letter, would the state pay him 10k as a severance?

Second, hasn't the governor been defending her firing Monegan for the last four weeks by saying that commissioners are at will employees and can be fired for any reason? So if she can fire a commissioner for any reason without paying them severance, why would she feel obligated to cut Kopp a check for $10k when he quit.

To put this into perspective; Monegan was on the job for 74 weeks and received no severance pay. Kopp was on the job 2 weeks and received $10,000 in severance pay.

Third, the agreement specifically states that the $10,000 is "not compensation for lost wages." So if it's not based on lost income, why is Colberg leaning on the argument that it's necessary because he gave up a good career for a job that only lasted two weeks? 

Furthermore, Colberg had no logical explanation when he was asked about how they arrived at the $10,000 figure. 

Something is not right here.

In addition, according to the agreement (attached) Kopp signed a release that prohibits him from asserting any claims "against the State of Alaska, its officers, employees, agents, representatives, insurers, servants, successors in interest..and demands for damages, costs, expenses or attorney's fees that arose" related to his employment.

This guy supposedly quit on his own. Why would the state need to pay him ten grand and require a signed release from future claims of damages?

And exactly how much did $10,000 buy the Palin administration in liability protection from Chuck Kopp?

The only reasonable answer could be that the Palin administration recognized that Kopp had significant grounds for future claims surrounding his hiring, short tenure in office and subsequent resignation. Or it could have been just old fashion payola to get him to go quietly into the night.

Excuse me Mr. Kopp.....Mr. Branchflower is on line 2 for you.

To read the settlement agreement click attachment

 

 

 

   

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Hush money agreement

It occurred to me that another reason for this kind of agreement would be to prevent Mr. Kopp from testifying or being able to discuss the case with an investigator. For example, - if, as a condition of being hired Mr. Kopp agreed to fire Trooper Wooten, then he can't talk about it without breaking the agreement. I may be wrong - there doesn't seem to be a confidentiality clause in it.


Lies ....and more lies

Palin held a press conference on Friday, August 1, saying she had just learned about Kopp's reprimand and he was resigning. Then how did the state sign the severance agreement on Wednesday, July 30. Obviously it had been drafted even earlier in the week, and was being processed while Palin was claiming she supported Kopp.


Hmmmm....

Very interesting observation- Thanks for pointing that out. If that is in fact true then it just adds credence to a deliberative cover up and/or fabrication of her comment that she, "just found out."


Severance Pay = Hush Pay by nature of it

Sometimes it is safer to terminate employees and give them severance pay even if they aren't deserving. The legal language in Kopp's severance is pretty standard but probably even very light. If your going to pay severance you want to buy as much legal protection from it because so many former employees will file frivolous legal cases. So I don't fault the administration for paying severance, however this case is different. It shows inconsistencies of any severance policy being followed. You want to have some sort of severance policy so it can't be claimed as an employer that you are acting bias. Why was Kopp given severance and not Monegan? Typically severance pay increases with duration of employment but can be anything especially if put into an employment agreement. Also, it is unusual to have severance paid as a non-wage/non-salary payment (i.e. 1099 income). This leaves the employer hanging on payroll taxes if the IRS comes back to audit. I agree that in this case Kopp left a comfortable long-term job and the state was giving him some severance to make him whole, even if it was his own fault. As an employer you always want to play it safe to come across as being more than fair to employees. I'm sure the Governor asked him to resign, too. $10K is really not a lot of severance. Just mention employee lawsuit, you might as well budget tens of thousands for legal defense. Probably $10K was an amount that the administration felt they could offer him and he would go quietly. And typically that is why you pay severance to employees you are terminating so they go quietly. No lawsuits, no public relations incidents, etc. That is just the nature of severance pay. However; if severance is paid to cover up ilegal/unethical activities, that's a whole different story. Personally, I'm not too concerned about this severance issue compared to what else is happening within the Governor's office. RW


understand that, but......

I understand the logic behind sev pay in general, but for consistency sake, if we are to believe those in charge right now, any at will employee can be fired for any reason - especially one who had not yet been confirmed by the legislature for a commish job. I agree he may have gotten the shaft, but the Gov could have just as easily allowed the Legislature to NOT confirm him - then what? Would he still get sev pay? Either someone is at will or not, so in this case while he may have gotten the shaft, if the constitution that the Gov showed everyone is to be believed, he could be relieved of duty with no sev pay due at all. There is no liability here, and the argument that the state saved money by avoiding a law suit is bogus because the state employees in the Dept of Law, when not "investigating" the entire Wooten/Walt deal, would be otherwise paid by the state for working or not working. It would be one more lawsuit filed by someone against the state on meritless grounds without really costing the state much money to defend.


wow

Andrew: To address your 2 options offered: 1) "The only reasonable answer could be that the Palin administration recognized that Kopp had significant grounds for future claims surrounding his hiring, short tenure in office and subsequent resignation." - But how can this be if the commish is an "at will" employee, who could be fired for having a bad haircut if the Gov doesn't like it, as we have been hearing from the kool-aid drinkers for 6 weeks. Didn't the Gov show us the constitution yesterday which says she can fire the commish at will? Why would she not use that as her defense if Kopp sued for his bad treatment? Which way do these people want this, cause you can't have it both ways. 2) "Or it could have been just old fashion payola to get him to go quietly into the night." - If option 1 isn't plausible then this makes #2 the only remaining option. But what about option #3 - there is no liability for the state, she can fire him cause he is "at will" and she doesn't care if he goes away quietly (ie diplomatically), but he is a good personal buddy so it seems "fair" to help him out. He is an Alaskan entitled to his "fair share", after all. Also, just to get past the clumsiness of this whole affair: if we are talking about an at will employee no severance agreement was needed unless you want to provide it as a cover for the ruse of just paying someone money. If there is no legal requirement for a severance agreement for an at will employee then it can be nothing more than a fumbled attempt to make the deal look "legal" when in reality it is just an attempt to give a friend some $.


Severance

Personally I have no problem with the severance package and in this case I don't blame Sarah for giving it to him, afterall she is responsible for this mess. She hung the carrot of being DPS commissioner in front of his face, ill prepared him for his press conference that he totally screwed up, lied that she didn't know anything about the sexual harassment charge and probably told him, no begged him to leave. Hell, Chucked deserved even more than that. Don't forget that Chuck Kopp was punished for his harassment and shouldn't be punished more. He lost his new job in large part because of Sarah Palin. Just like Mike Wooten was punished for his mistakes, they shouldn't be revisited. Also remember, Chuck Kopp served for 19 years. By leaving DPS he will not get any retirement until he is 65 unless he can get another state job that can take him to 20. What community will hire him now?He may not have deserved to be DPS commissioner but he didn't deserve to lose everything.


NO NO NO

NO, no. no...Sarah didn't "give it to him, afterall she's responsible for this mess". The check didn't come from Sarah's checking account, it came from the State of Alaska. That's you and me. I certainly don't think he deserved any money. If the City he worked for wants to give him severance when he quit on them and ran to Sarah, that's their business. He probably was a fine worker...but either he or Sarah is lying and again, WE PAY.


Kopp deserved a payoff? You're kidding.

So, the general idea being sold by the Palins and their boy Talis appears to be: Kopp didn't have to take the job. He sacrificed his "comfortable" job in Kenai to take it. It's only fair that he be paid something for the unfortunate way in which he was only able to stay for a week or so. Welllll..... 1. This is further support for the argument that he wasn't fit for the job in the first place. He knew his predecessor had been unceremoniously shown the door with no notice whatsoever. His predecessor was told he was serving "at the pleasure of the governor". Kopp should have known that before he handed in his resignation at Kenai. He also should have known this: His own stay at DPS could be terminated at any time without any prior notice or formal complaint about his performance. If he was so naive about the conditions of the job, why was he even appointed in the first place? 2. How long would Kopp have had to remain at DPS before he didn't deserve a golden parachute when resigning? A year? 19 years? So, because he voluntarily jumped at the opportunity to oversee DPS, the state (us) has to give him a get-well payment when his own actions were the cause of his resignation? 3. Have any other commissioners been paid severance when forced to resign? We know Monegan wasn't. Was Karleen Jackson at DHSS paid off? Why is it that no one in the media forces answers to these questions out of Palin? Does anyone realize that the payments are public information that can be demanded by any concerned citizen? 4. When did the negotiations for this severance payoff begin? How far in advance of Kopp's resignation did he demand a going away payment? 5. Sorry to dredge up an old question, but Palin has never answered it: When she said that she (through her staff) had "investigated" the allegations of Kopp's reprimand for harassment and found them "baseless", what did the "investigation" consist of and who conducted it? Further, when was it conducted? Before Kopp was hired, or after the first mention of it from the woman who had complained in the first place? 6. What are the limitations on Branchflower's authority as an investigator? How far is he permitted to go in investigating not only the circumstances of Monegan's ouster but also the hiring of Kopp, the resignation of Kopp, the payoff to Kopp, the use of the state Webmail service by Todd Palin, the diversion of state communications to private e-mail accounts to circumvent the Webmail system, the disclosure of confidential personnel information in the Wooten case, the obstruction of Branchflower's investigation by Colberg and Palin's staff, the examination of materials deemed by Palin to be "privileged".... the list goes on. It's clear that the AG's office and Dept. of Law can't be entrusted with any aspect of an investigation, as it's already been shown that they have tried to preempt Branchflower's work and were instrumental in paying off Chuck Kopp when DPS refused to do so. I know I don't have the money or time to pursue a Freedom of Information Act filing. The refusal of the governor to answer truthfully, and her continued hypocrisy as a "transparent" governor, is maddening, though. This is someone who was elected largely on the basis of being the anti-Murkowski, the anti-corruption candidate, the "open government" candidate. And yet, despite overwhelming indications that she's, if anything, worse than Frank ever could have hoped to be, she is able to focus people on the misdeeds of Trooper Wooten to justify virtually every action and concealment. Amazing. She might not be the most capable governor, but she sure has a feel for the intelligence of the average person on the street.


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copyright 2007 Andrew Halcro, All Rights Reserved.