BY MICHAEL WEBSTER: INVESTIGATIVE REPORTER Sept. 13, 2008 at 12:01 AM PDT

Republican presidential candidate John McCain with his vice presidential running mate, Alaska Governor Sarah Palin.

Steve Branchflower, a retired state prosecutor who legislators hired to probe Palin's firing of former Public Safety Commissioner Walt Monegan, said someone in the governor's office might have also pushed one of the 13 people on the subpoena list to deny workers' compensation benefits to state trooper Mike Wooten.

The trooper was involved in a divorce from Sarah Palin's sister, and Monegan has said in media interviews he believes he lost his job because he wouldn't bend to pressure from the Palin family and at least one of the governor's aides to fire the trooper.

In 2005, before Palin ran for office, the Palin family accused trooper Mike Wooten of drinking beer in his patrol car, illegally shooting a moose and firing a Taser at his 11-year-old stepson. Palin and her husband, Todd, also claimed Wooten threatened to kill Sarah Palin's father. Wooten as a result was suspended over the allegations for five days in 2006 but still has his job. Among the complaints the Palins have lodged against Wooten is that he filed a workers' comp claim even though he wasn't really injured.

Branchflower testified Friday at a joint hearing of the Alaska House and Senate judiciary committees in Anchorage.

Committee members vigorously debated whether to take the rare step of issuing subpoenas, with one lawmaker, North Pole Republican Sen. Gene Therriault, predicting that doing so might lead to a "smackdown" court battle between the executive and legislative branches of the state government.

Therriault and Sen. Lesil McGuire, R-Anchorage, argued for delaying the issuance of subpoenas, if not the investigation itself, until after the Nov. 4 election.

Others, wanted to get on with Branchflower's investigation.

"I say let's just get the facts on the table, the sooner the better," said Sen. Charlie Huggins, a Wasilla Republican who came to the hearing dressed in camouflage, saying he took time out from a moose hunt to attend.

Huggins joined Senate Finance Committee Chairman Hollis French and Sen. Bill Wielechowski, both Anchorage Democrats, in supporting Branchflower's request for subpoenas. Therriault and McGuire voted against.

The lawmakers than voted to subpoena witnesses including Gov. Sarah Palin's husband, Todd, and the unnamed employee at Harbor Adjustment Service as part of the Troopergate inquiry.

Legislators first began the probe in late July of 08 well before Palin was announced as a vice presidential candidate. The lawmakers voted to spend up to $100,000 on Branchflower's investigation.

In open testimony Friday, Branchflower explained that he needed to subpoena witnesses, most of whom are state employees who have declined to submit to his questioning or who initially agreed to but were no shows for later appointments.

One "especially important" witness on the subpoena list, Branchflower said, is Murlene Wilkes, owner of an Anchorage company called Harbor Adjustment Service. The company holds a state contract to process and pay workers' comp claims.

Branchflower said in August he heard that "someone from the governor's office or someone from the state" advised Wilkes to deny Wooten's claim. So Branchflower said he called Wilkes to check it out.

Branchflower said Wilkes told him she had never talked to anyone in the governor's office about the Wooten file, nor had she seen photos of Wooten riding a snowmachine while on workers' comp.

But later, he said, an employee for the company who worked under Wilkes and who actully handled Wooten's claim said she was pressured -- Branchflower refused to disclose her name. All he would say was that she called his investigative tip line to say Wilkes told her "something to the effect that either the governor or the governor's office wanted this claim denied."

Branchflower said the employee's statements were recorded during the interview. Branchflower said she told him she felt pressured.

"I don't, you know, care if it's the president who wants the claim denied. I'm not going to deny it unless I have the medical evidence to do that," Branchflower said, quoting from the employee's statement.

Now, Branchflower said he wants to take a sworn statement from Wilkes, who he said was possibly "not truthful" in her initial talk with him. Wilkes, he said, canceled a Thursday appointment for an interview on the advice of an attorney.

"She obviously is a key player because she handles all of the workmen's compensation claims for the state of Alaska," Branchflower said. "She may have a financial motive," he added, due to her contract with the state.

Wilkes, since that testimony has be unavailable and apparently ducking the press.

Tom Van Flein, an Anchorage attorney retained for the governor by the Department of Law (AG's Office) that authorized up to $95,000 to pay for her representation as governor. But he is also representing the Gov. and her husband Todd privately. When Van Flein was asked by reporters "did he think there is any conflict of interest or violation of any ethic's" He indicated there was not, and that he has in the past represented the Palins in other matters, and refused to say what those matters were. Normally the State Attorney General would have represented Palin, however Alaska State AG Talis Colberg himself is deeply embroiled in the whole matter and because of that he has recused himself according to his office.

Van Flein said that he couldn't say whether someone with the governor's office contacted Harbor Adjustment on the Wooten claim. But Van Flein said state officials did investigate "potential workers' comp fraud," based on information from Todd Palin. Palin's version of the events deny any abuse of power and Palin's attorney Van Flein has long contended that the investigation belonged in the personnel system and not the legislature.

State officials on Friday when queried about the worker' comp case they were unable to shed any more light or other details which included what the state's current contract is with Harbor.

News reports Brad Thompson, the state's risk management director and one of the people who will receive a subpoena, furnished a copy of a one-year contract, signed in 2003, paying Harbor $1.2 million to handle workers' comp claims.

Thompson, in an e-mail, said the state has signed "several extensions" since that initial contract, but he didn't respond to questions as to the current contract term or dollar amount.

Branchflower said he wants to subpoena Todd Palin as the "principal critic" of Wooten's continued employment as a trooper. He told legislators Todd Palin had a meeting with Monegan in the governor's office in January 2007, not long after his wife was sworn in, to show him the results of a private investigation into the trooper's alleged misconduct, including photos of Wooten riding a snowmachine.

Two important witness who Branchflower wanted to interview, but who legislators decided not to subpoena, are the governor herself and her former chief of staff, Mike Tibbles, now working as campaign manager for U.S. Sen. Ted Stevens, R-Alaska who is indicted by the feds and is preparing for his up-coming trail.

Branchflower has claimed that he is aiming to finish his investigation and findings by Oct. 10.

In a second new and interesting development the Laguna Journal has learned that Alaska attorney and former US Attorney Wevsley Shea actually wrote to Palin advising her against her current course of action in this matter and warned of "grave" circumstances if she continued.

The Gov. before she retained an attorney revealed an audio recording that shows an aide pressuring the Public Safety Department to fire a state trooper fighting in a custody battle with her sister.

Palin, who has previously said her administration didn't exert pressure to get rid of trooper Mike Wooten, also disclosed that members of her staff had made about two dozen contacts with public safety officials about the trooper.

Shea in his letter to Palin dated July 24, 2008 said, "I have great respect for you, Todd and your family. You are wonderful Alaskans. Unfortunately, in my opinion, you have had very naïve unprofessional counsel on the Department of Public Safety and the Department of Law. Your "political advisors" have given you poor counsel; The situation is now grave."

His letter goes on to say that he recommends action "now" to restore your credibility and Alaska's bright future with you.

He than encouraged the Governor to immediately "Apologize for not personally terminating Commissioner of Public Safety Walt Monegan, And for her to "Apologize for your statements regarding Commissioner Monegan in the Press Release no. 08-125. And "Apologize, with Todd, for overreaching or perceived overreaching on Trooper Mike Wooten. And "Terminate any "state advisor" who addressed Trooper Wooten with Commissioner Monegan. And "Withdraw former Kenai Police Chief Chuck Kopp's name as Commissioner of Public Safety. And " Do not, in writing (as in Press Release no. 08-125). " define" the credibility of state employees.

Shea closed his letter by saying that " Trooper Wooten was/is a grave public safety threat to your family. It was/is a very personal, emotional matter which was either mishandled or covered up by certain individuals. Todd was/is very concerned. You are a wonderful lady with a fine husband. Certain key advisors were/are weak and self absorbed. I am extremely concerned about "wolves" if my recommended action is not taken immediately."

Sources:

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