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Murkowski donates tainted campaign funds to Homer nonprofit with family ties, but FTX debtors want it back

The Democrats’ Senate Majority PAC announced it will return the $3 million in donations from former FTX CEO Sam Bankman-Fried and the former FTX head of engineering, Nishad Singh, according to the political action committee.

The PAC spent at least $160 million supporting Democrat candidates for Senate in 2022, and a few select Republicans.

“Following the serious allegations against FTX, Senate Majority PAC previously set aside the contribution amounts from Sam Bankman-Fried and Nishad Singh with the intention of returning the funds once we receive proper direction from federal law enforcement officials based on their legal proceedings,” a PAC spokeswoman told CNBC on Tuesday.

Sen. Lisa Murkowski, who received the maximum contribution to her campaign from a disgraced cryptocurrency crook, will not return the funds so they can be redistributed to investors in FTX. Instead, she has donated those funds to a Homer nonprofit, Storyknife Writers Retreat in Homer. Murkowski received about $14,000 from Sam Bankman-Fried, his brother, and another executive at FTX.

FTX bilked thousands of investors out of their cryptocurrency investments, and used those funds to get Democrats elected into office.

Murkowski’s campaign told Anchorage Daily News reporters she donated $14,200 to the nonprofit as soon after the news of the cryptocurrency fraud was made public.

“FTX entered bankruptcy filings on Nov. 11, and Murkowski made a donation of $14,100 to Storyknife Writers Retreat in Homer on Nov. 22, according to Federal Elections Commissions records. The donation was made weeks before Bankman-Fried was arrested in the Bahamas earlier this week,” the ADN reported. Bankman-Fried was arrested three weeks after Murkowski handed over the money to a retreat for women writers, where there is a cabin sponsored by a family member associated with the senator.

The Storyknife Writers Retreat has a Murkowski family connection. One of the cabins is named for the senator’s sister, Carol Murkowski Sturgulewski, as a naming opportunity sponsored by the late State Sen. Arliss Sturgulewski, who served in the Legislature from 1979 to 1993. Naming rights for cabins at the retreat went for about $50,000.

But the bankruptcy court says it will claw back that type of re-distribution of those funds, which belong to debtors.

FTX is trying to get the payments made to politicians back and “intends to commence actions before the bankruptcy court to require the return of such payments, with interest accruing from the date any action is commenced”, the company said. Recipients of the ill-gotten gains can voluntarily return the money and avoid court action by contacting  [email protected].

“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX contributor does not prevent the FTX debtors from seeking recovery from the recipient or any subsequent transferee,” FTX said in a statement.

“FTX Trading Ltd. (d.b.a. FTX.com), and its affiliated debtors (together, the ‘FTX Debtors’), today announced the FTX Debtors have been approached by a number of recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried or other officers or principals of the FTX Debtors (collectively, the ‘FTX Contributors’). These recipients have requested directions for the return of such funds to the FTX Debtors. The FTX Debtors are working with these recipients to secure the prompt return of such funds to the FTX Estates for the benefit of customers and creditors,” the press release reads.

“The FTX Debtors invite all recipients of such payments to contact the FTX Debtors at ([email protected]) to make arrangements for the return of such payments. To the extent such payments are not returned voluntarily, the FTX Debtors intend to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced. Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee,” the company said.

Alaska attorney general joins 36 others asking feds to protect airlines customers after flight cancellations

By JOE MUELLER | THE CENTER SQUARE

A bipartisan coalition of 37 attorneys general, including Alaska AG Treg Taylor, are requesting the U.S. Department of Transportation improve protections for airline customers.

The coalition, led by Democratic Colorado Attorney General Phil Weiser, sent a letter on Monday urging Transportation Secretary Pete Buttigieg to adopt proposed rules for airline ticket refunds and other protections. It stated appreciation for the department’s efforts to address the problems of flight cancellations and significant delays, but the eight-page letter emphasized proposed regulations must be strengthened.

“We are aware of the frustrations experienced by countless consumers whose flights have been cancelled or delayed and the inadequate remedies that have been offered to them,” the letter stated. “In fact, our offices have repeatedly brought to the USDOT’s attention complaints from airline passengers impacted by the airlines’ cancellation or significant delay of their flights.”

The letter highlighted Weiser’s September 2020 complaint to former Transportation Secretary Elaine Chao concerning Denver-based Frontier Airlines’ alleged unfair or deceptive practices during the COVID-19 pandemic. Weiser claimed the airline’s flight-change policies and customer service practices violated federal law.

“In our experience, the USDOT has yet to develop the ability to respond quickly enough to or coordinate effectively with our offices,” the letter stated. “That is why a bipartisan coalition of 37 attorneys general have twice urged Congress to take meaningful action and pass legislation that would authorize state attorneys general to enforce state and federal consumer protection laws governing the airline industry.”

The attorneys general warned about possible abuse of a proposed rule requiring refunds when there’s a significant change in flight itinerary.

“Because some currently published airline refund policies are more protective of consumers – providing refunds after a 120-minute delay, for example – USDOT should take steps to ensure that setting a floor does not cause some airlines to loosen their standards to the detriment of consumers,” the letter stated.

Other suggestions include:

  • – Requirements for airlines to advertise and sell flights only if they have adequate staff to fly and support the flight;
  • audits to ensure compliance with regulations and impose fines when airlines fail to meet regulations;
  • – Fines for cancellations and extended delays not related to weather;
  • – Partial refunds when a rescheduled flight, accepted by the passenger, is later, longer or otherwise less valuable than the original purchased flight;
  • – Prohibit flight cancellation while upselling consumers for more expensive alternative flights to the same destinations;
  • – Ensure credits or vouchers for cancelled flights can be used easily without inappropriate limitations;
  • – Additional compensation to consumers paying additional costs for meals, hotel stays, flights on other airlines, rental cars and gasoline due to flight delays or cancellations.

“Coloradans tell our office often about airlines over-complicating refunds, not adhering to their cancellation policies, and generally making travel challenging and costly,” Weiser said in a statement.

Other states and territories signing onto the letter are Arizona, California, Connecticut, Delaware, the District of Columbia, Guam, Hawaii, Idaho, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, the U.S. Virgin Islands, Washington, Wisconsin, and Wyoming.

Dunleavy and 24 governors sign letter to Biden: End the Covid public health emergency

By KIM JARRETT | THE CENTER SQUARE

Alaska Gov. Mike Dunleavy joined 24 other governors in sending a letter to President Joe Biden asking him to end the federal public health emergency in April, saying Medicaid costs are costing their states millions.

States received more money for Medicaid during the PHE but cannot remove anyone from the program’s rolls until either one month before the public health emergency ends, the month it ends, or the month after it ends, according to Medicaid.gov.

Biden extended the public health emergency to January and has not indicated when it will end. The governors said they assume the public health emergency will continue at least until April.

The governors asked Biden for an indication as to when he would end the public health emergency. Twenty million people have joined the Medicaid program since the public health emergency began nearly three years ago, and the states are faced with additional costs, they said.

“While the enhanced federal match provides some assistance to blunt the increasing costs due to higher enrollment numbers in our Medicaid programs, states are required to increase our non-federal match to adequately cover all enrollees and cannot disenroll members from the program unless they do so voluntarily,” the governors said in their letter. “Making the situation worse, we know that a considerable number of individuals have returned to employer sponsored coverage or are receiving coverage through the individual market, and yet states still must still account and pay for their Medicaid enrollment in our non-federal share.”

The governors said they have the “tools and information” to protect their citizens against COVID-19.

“You recognized this yourself in a 60 Minutes interview in September when you said, ‘The pandemic is over,'” the governors said. “Additionally, the United States Senate passed a bipartisan resolution, 61-37, to terminate the national emergency on November 15, 2022. We agree with both your statement and the Senate’s resolution – it is time we move on from the pandemic and get back to life as normal.”

The letter was signed by the governors of New Hampshire, Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Massachusetts, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wyoming.

Kim Jarrett’s career spans over 30 years with stops in radio, print and television. She has won awards from both the Georgia Press Association and the Georgia Association of Broadcasters.

U.S. Justice Dept. finds Alaska unnecessarily segregates children with behavioral disabilities in institutions

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The Department of Justice has found reasonable cause to believe the State of Alaska violates the Americans with Disabilities Act by failing to provide community-based services to children with behavioral health disabilities, relying instead on segregated, institutional settings — specifically, psychiatric hospitals and psychiatric residential treatment facilities.

The finding concludes of the department’s investigation into whether Alaska subjects children with behavioral health disabilities to unnecessary institutionalization in violation of Title II of the ADA.

“Each year, hundreds of children, including Alaska Native children in significant number, are isolated in institutional settings often far from their communities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. 

“Most of these children could remain in family homes if provided appropriate community-based services. We look forward to working with Alaska to bring the State into compliance with federal law and prevent the unnecessary institutionalization of children,” Clarke said.

Children who are segregated in psychiatric residential treatment facilities commonly stay there longer than six months, and some of them are sent to states as distant as Texas and Missouri, thousands of miles from their families.

The department’s investigation found that Alaska’s system of care is heavily reliant on institutions and that key community-based services and supports needed to serve children with behavioral health disabilities in family homes, such as home-based family treatment, crisis services and therapeutic treatment home services, are often unavailable. As a result, many children with behavioral health disabilities, including a substantial number of Alaska Native children, are forced to endure unnecessary and unduly long admissions to psychiatric hospitals and psychiatric residential treatment facilities both within Alaska and in states across the country. 

The Alaska Department of Law is reviewing the findings.

Alaska gets $21.5 million in opioid settlement with Walmart, Teva Pharma, Allergan

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The State of Alaska recently agreed to three multi-state settlements with opioid manufacturers and a chain pharmacy in ongoing legal actions relating to the opioid crisis. These include Walmart for approximately $8.5 million, Teva Pharmaceutical Industries for approximately $8.2 million and Allergan for approximately $4.8 million.

The State has also received in the last couple of weeks final settlement proposals from CVS ($10 million over 10 years) and Walgreens ($11 million over 15 years) The State is evaluating whether to join those global settlements as well. These settlements would amount to an additional $21 million.

Between 2010 to 2017, Alaska received 303,646,336 retail doses of prescription opioid painkillers. With Alaska’s population of 721,000 residents, this equates to roughly 420 doses per Alaskan. According to the State in its legal filings, these numbers alone should have put pharmacies and distributors on notice that there were too many opioids flooding the Alaska market, and the companies should have reported suspicious orders as required by law. 

“The State and our agency partners have been fighting the opioid crisis on three fronts through interdiction of illegal drug trafficking, public health intervention/education programs, and litigation that holds distributors, manufacturers and chain pharmacies that contributed to the crisis accountable,” said Alaska Lt. Governor Nancy Dahlstrom. “The hard work is bringing results.”

The Walmart filing states: “This case arises from the worst man-made epidemic in modern medical history — an epidemic of addiction, overdose, and death caused by Defendants’ flooding the United States, including the State of Alaska, with prescription opioids, in violation of their common-law duties and obligations under the federal Controlled Substances Act (“CSA”) and Alaska Controlled Substances Act (“ACSA”).”

“These chain pharmacies had a duty to investigate, to stop some of their prescriptions, to report some to law enforcement,” said Deputy Attorney General Cori Mills. “Instead, we believe our cases would show that they continued to sell and profit from the addictions of Alaskans. We are glad to see some of these companies have stepped forward and have been willing to bring their cases to a close through settlement.”

Last February, the State finalized a settlement for $58.5 million with the manufacturer Janssen/Johnson & Johnson (J&J), and three major pharmaceutical distributors: Amerisource Bergen, Cardinal Health, and McKesson. Through the state and local government agreements, Alaska will receive the funds over the next 18 years.

While prescription opioids were the primary reason for opioid overdose deaths beginning in the late 1990s, heroin and then illegally-manufactured synthetic opioids became additional drivers of overdose deaths starting around 2010. 

The State of Alaska is now battling the illegal-manufacturing and trafficking of synthetic opioids, in addition to continuing the successful work of curbing prescription opioid use. 

The Alaska Department of Public Safety and local, State, and federal law enforcement agencies have seized over 212 pounds of illegal narcotics as part of a focused enforcement initiative that occurred across the state between May 1, 2022, and September 30, 2022, of this year. Law enforcement seized approximately 2.5 million potentially fatal doses of illicit fentanyl during this period. Additionally, 22,441 grams of heroin, 22,865 grams of methamphetamine, 13,306 grams of cocaine, and many other illicit narcotics have been seized.

“Your Alaska State Troopers are committed to doing our part to address the tidal wave of illegal drugs coming into our state. DPS has doubled down on drug interdiction activity across the state. We have put more Troopers onto our drug interdiction teams than we have ever had and increased our efforts across the board. Through these efforts we have seized more than 2.5 million potentially fatal doses of fentanyl and hundreds of pounds of other dangerous drugs,” said Alaska State Troopers Statewide Drug Enforcement Unit Deputy Commander Tony Wegrzyn. “We cannot do this critical work alone and ask that if Alaskans know of drug trafficking occurring in their community to please reach out to the Troopers or your local police department so we can investigate and hold those dealing dangerous drugs accountable.”

Alaskans can submit tips about drug trafficking occurring in their community to the Alaska State Troopers at (907) 451-5100 or to their local police department. For those who would like to remain anonymous, tips can be submitted through the AKTips smartphone app or online at dps.alaska.gov/tips.

In 2021, Alaska lost at least 253 people to overdose, with 196 deaths attributed to opioid overdose. Seventy-six percent of the deaths, or 150, involved synthetic narcotics, a category that includes fentanyl, according to an executive summary in a recent reportby the Governor’s Advisory Council on Opioid Remediation.    

The advisory council, established by administrative order, incorporated public comments this fall and finalized the Governor’s Advisory Council on Opioid Remediation report that provides a framework for allocation of settlement funds for opioid remediation.

“Prior settlements with Janssen/Johnson & Johnson (J&J, Amerisource Bergen, Cardinal Health and McKesson amounted to $58,577,799 for the State of Alaska and nine sub-political regions to address the opioid crisis,” said Department of Health Commissioner Heidi Hedberg. “These new settlements will be added to the opioid abatement account to address prevention, treatment, harm reduction and recovery efforts across the state.”

“The State and a wide variety of partners across the state are stepping up efforts to provide resources for those struggling with addiction and opioid misuse – and to end stigma so Alaskans can find treatment and begin healing,” Hedberg said. “Every life matters. Every day is a new day. Start your path to recovery today and please connect with us if you need help or support.”

The proposed settlement agreements are not final until two phases have been completed: a critical mass of states sign on (this has already been achieved in the Walmart settlement but the deadlines for Teva/Allergan are this week); and then a critical mass of political subdivisions have to sign on. The political subdivision sign on period will likely occur in January 2023.

Below are the legal complaints for reference:

House Jan. 6 Committee asks Justice Department to bring criminal charges against Trump

The U.S. House Select Committee’s final meeting ended Monday with a recommendation to the Justice Department that it bring criminal charges against former President Donald Trump for his contributions to what the committee believes was an insurrection against the government on Jan. 6, 2021, in an effort by protesters to stop the certification of the presidential election results.

The committee, comprised of seven Democrats and two liberal Republicans, voted unanimously and also released a summary of its report that accuses Trump of being part of a “multi-part conspiracy” to change the outcome of the election. The committee wants the Justice Department to hold the former president accountable for the actions of those who broke through the police lines and entered the U.S. Capitol that day.

Also on Monday, the committee voted to ask the Justice Department to prosecute John Eastman, a conservative lawyer, for conspiracy to defraud the United States and his role in obstructing an official process. The committee’s report states:

“Beginning election night and continuing through January 6th and thereafter, Donald Trump purposely disseminated false allegations of fraud related to the 2020 Presidential election in order to aid his effort to overturn the election and for purposes of soliciting contributions. 

“These false claims provoked his supporters to violence on January 6th.

“Knowing that he and his supporters had lost dozens of election lawsuits, and despite his own senior advisors refuting his election fraud claims and urging him to concede his election loss, Donald Trump refused to accept the lawful result of the 2020 election. Rather than honor his constitutional obligation to “take Care that the Laws be faithfully executed,” President Trump instead plotted to overturn the election outcome.

“Despite knowing that such an action would be illegal, and that no State had or would submit an altered electoral slate, Donald Trump corruptly pressured Vice President Mike Pence to refuse to count electoral votes during Congress’s joint session on January 6th.

“Donald Trump sought to corrupt the U.S. Department of Justice by attempting to enlist Department officials to make purposely false statements and thereby aid his effort to overturn the Presidential election. After that effort failed, Donald Trump offered the position of Acting Attorney General to Jeff Clark knowing that Clark intended to disseminate false information aimed at overturning the election.”

It is up to the Justice Department, and U.S. Attorney General Merrick Garland, to decide whether to pursue charges against Trump and Eastman.

The final report by the Jan. 6 Committee is at this link:

Is Gov. Jay Inslee going for fourth term in Washington?

Washington Democrat Gov. Jay Inslee hasn’t said if he’s seeking a fourth term as governor, but with a year to go until the Washington gubernatorial election season starts, he has $1.5 million in his campaign account. No one has ever served longer than three terms in Washington, and the last governor to serve three terms was Republican Gov. Dan Evans in 1972. Washington does not have a term limit for governor.

The 2024 Washington gubernatorial election is Nov. 5, 2024, and the top-two primary is Aug. 6, 2024.

Also eyeing a run for Washington state governor is business executive Republican, Brian Heywood, Rep. Jamie Herrera Butler, and Pierce County executive Bruce Dammeier, Republican, and former state senator.

Herrera Butler, a moderate Republican, lost her primary to harder-right Republican Joe Kent, who then lost in the general election, giving that seat over to the Democrats’ candidate Marie Gluesenkamp Perez.

Inslee won in 2020 by more than 60% of the vote, and has not lost any substantial traction with voters in the western side of the state, where the population determines the outcome of elections and where the voters are decidedly Democrat. Inslee also briefly ran for president in 2020, but dropped out before the Democratic convention that August. Before becoming governor, he was in Congress representing Washington’s First Congressional District from 2000 to 2012, and he also was in Congress from 1994 to 1996 for Washington’s Fourth Congressional District. He served in the state House from 1990 to 1993.

Democrats control the Washington state House and Senate, and with Inslee in the Governor’s Office, have a political trifecta. Washington has not had a Republican governor since John Spellman retired 1985. It’s the longest stretch of Democratic leadership of any state in the country. It’s also the third-longest streak of single-party leadership in a governor’s office after South Dakota (Republican) and Utah (Republican).

Inslee just rolled out a gun-control legislation today with Democrat Attorney General Bob Ferguson, which some analysts believe is a signal he is planning to back Ferguson for governor.

One measures would ban the sale of “military-style assault weapons,: and the second would hold gun manufacturers and dealers responsible for some consequences if they fail to “establish, implement and enforce reasonable controls in the manufacture, sale, distribution and marketing of firearms.” It gives families an avenue to sue gun dealers for damages.

Dunleavy names Hedberg as permanent Health commissioner

Gov. Mike Dunleavy has named Heidi Hedberg to serve as the permanent commissioner of the Alaska Department of Health. Hedberg was named acting commissioner last month after former Commissioner Adam Crum moved to the Alaska Department of Revenue. 

“After working with Commissioner Hedberg the past four years, she has impressed me with her management skills, and ability to enact public health policies that make Alaskans healthier and safer,” Dunleavy said. “Alaskans can be confident that the department responsible for their health and welfare is in good hands.”

Hedberg has been with the State of Alaska since 2009, serving in various capacities within the Division of Public Health, Department of Health, and most recently as the Director for the Division of Public Health. She holds a bachelor of science degree from Alaska Pacific University. She moved to the Alaska in 1995 from Seattle. Prior to her state service, she worked with various non-profit organizations for twelve years. She also chairs the Governor’s Advisory Council on Opioid Remediation and serves on the Governor’s Council on Homelessness, and State Emergency Response Commission.

Commissioner Hedberg’s name will be forwarded to the Alaska Legislature for a confirmation vote in upcoming the 2023 session.

Fifth Circuit rejects Biden’s vaccine mandate for federal contractors and their employees

By THE CENTER SQUARE

The Fifth U.S. Circuit Court of Appeals on Monday upheld a lower court’s ruling blocking the Biden administration’s Covid-19 vaccine mandate for federal contractors and their employees.

In a 2-1 decision, the court said the mandate could be interpreted to give President Joe Biden “nearly unlimited authority to introduce requirements into federal contracts.”

The mandate could have affected up to 20% of the U.S. work force.

“Today is a victory for freedom,” Louisiana Attorney General Jeff Landry said in a statement. “We will continue to stand up against the Biden Administration’s abuses of power that threaten us now and in the future.”

Landry filed suit along with the states of Mississippi and Indiana challenging the constitutionality of Biden’s requirement that contractors who do business with the federal govornment must ensure their employees have received the Covid-19 vaccinate or face strict mask and testing requirements.

Among other things, the federal contractor complaint claims the scope of the mandate is “as broad as possible.”

“Thus, the guidance ensures that the contractor vaccine mandate applies to all employees of a contractor or subcontractor who is party to a federal contract – even if the employee’s work is completely unrelated to the contract or if the employee will never work in a location with a co-worker who is working on a federal contract,” the lawsuit reads.