Troubles widen for Permanent Fund board, as executive session was breached

By
Suzanne Downing
-
34

After a spicy meeting of the Alaska Permanent Fund Board of Trustees, the board went into executive session to try to determine just who had leaked internal board emails about Trustee Ellie Rubenstein and allegations that she has been bullying and threatening the fund’s staff into doing business aligned with the interests of David Rubenstein’s Carlyle Group, a powerful private equity company.

The executive session was to be about security and how to ensure that no more leaks occurred to the public. Some on the board seem especially concerned that the Alaska Landmine political blog released some of the internal emails in a mind-blowing expose of the workings of Alaska’s sovereign wealth fund.

But then, security was again a problem. A member of the public was able to access the “secure” virtual meeting through simply clicking on a feature that allowed him to join, and he took dozens of pages of notes and gave them to the Alaska Landmine.

It appears the Permanent Fund meeting manager didn’t “close the door” to the virtual meeting and now everything that was said has been noted in detail.

The Alaska Permanent Fund Corporation acknowledged this in a notice on its website today:

“The Alaska Permanent Fund Corporation (APFC) was alerted to the fact that the Board of Trustees’ executive session held during the May 8, 2024, Special Meeting was accessed by members of the public. APFC is concurrently assessing and conducting a forensic analysis of the comprised session,” the Permanent Fund wrote. It appears the fund intended to mean “compromised session.”

Jeff Landfield, of the Alaska Landmine, said he is reviewing the notes and is likely to have more to tell about the widening scandal at the Permanent Fund.

Must Read Alaska’s report about the public meeting that took place in advance of the executive session is below. It explains how the board of trustees is suffering from a schism surrounding the behavior of trustee Ellie Rubenstein toward the professional staff:

Testy trustees: Permanent Board directors show signs of strained relationships over Rubenstein revelations

34 COMMENTS

    • You do not know that she should be dismissed. Ms. Rubenstein is tied into finance and has connections. It can be appropriate for trustees to suggest to staff that a certain product or firm might be a good fit. Now, if she was pressuring staff past that, the situation may be inappropriate.

      Remember, this is an accusation, and we have only heard 2nd hand one side of the story. What if all she did was mention in writing to staff that they ought to look at ‘x’ to see if it would improve the risk adjusted rate of return for the portfolio?

      • While I agree that we need to hear more of the story, saying that Ms. Rubinstein is “tied into finance” is an extreme minimization. And you cannot seriously contend that Ms. Rubinstein innocently “suggested” that investment in Carlyle holdings – in which her family has billions – did not pose a potential conflict of interest.

        Management of Alaska’s Permanent Fund assets should be beyond reproach. Based on what is known, Ms. Rubinstein appears to have crossed the line. That the Governor tolerates this conduct is perhaps worse.

  2. All they care about is punishing the person who brought their corruption to light. Ignore the corruption, hunt down and silence another whistleblower…the new American way.

    • That’s politics in Alaska. Happens all the time in local government and school boards. Sounds like every corner of government is infected with liars attacking those who expose them. Thank you, brave whistle-blowers, but watch out…. or you’ll end up eliminated.

    • Nope, Barack’s buddy (owner) has her fingers in the pie here in AK.
      Disgraceful.
      Her mansion on Nantucket is next door to one of John Kerry’s (the “environmentalist) 5 homes.
      How cozy.

  4. How about instead of holding “virtual meetings”, they instead meet in person, in a closed door room, and with everyone required to leave their phones and all electronic devices outside said room??

    It’s not complicated….

    • Tim: An ever better solution would be conducting all business in an open session. After all, Sunshine remains damn good medicine for ill Democracies…..

  6. Julian Assange or Edward Snowden at work from their secret locations?
    Or, was it Sonia Sottemayor’s legal clerk from the US Supreme Court’s judicial offices?

  7. Who are these frigging people. Who the hell do they think they are. Some elitists doing whatever they feel like. These people are crooks and criminals. Who puts them in their positions are they vetted. My God get a grip on these bullies and get them the hell out of these jobs. Like yesterday. I’m sick of this crap and so should we all.

    • Her Daddy David Rubinstein affiliated with the Council of Foreign Relations,the WEF and our governor is playing ball with them.Says it all.

    • Dunleavy appointed Rogoff’s kid.
      I am disgusted w/ him.
      I guess he needs big $ to run for the Senate.
      A hole move Big Mike.

  8. OMG! … Really???
    You’re bunch of Wussies, afraid of Little ‘ol Ellie-Rubenstein?
    For God’s Sake, she’s only 5-feet // 5-inches tall and 125lbs.
    This is nothing less than a complete distraction and farce.
    Most likely, a Dust-Up whereby somebody got their feeling hurt.
    QUIT treating these people like they are Saints and Nunns.
    RATHER, use them as Trained Assassins with Investment Skills!!!
    FOCUS(!) intently on maximizing returns and growing the Fund.

    • OMG,
      That’s nearly the same size as Stormy Daniels without her implants. Another complete distraction and farce.

      • … “NO” // Terrible analogy.
        … You completely miss the point.
        … I don’t care if it’s operating fairly, ethically, and/or legally and adheres to that crazy DEI Standards, ie: useless fairy dust and unicorns. The only thing we should care about is maximizing the ‘exponential’ rate of return and the growth of the Fund.
        =THAT’S IT!!!=

    • Welp it’s going to come around and bitch slap them all…ding dong them ICC audits and ICC seizures of assets and all…lol…her haw..I guess participating idiots shouldn’t name their kids after oxymoronic imps…

  9. Rob B

    Called deflection . Board is more worried about leak than a total conflict of interest with Ellie steering PFD investments to her fathers company ( Carlyle Group ) which she has a financial interests being an heir to her dads estate .

    Please note and please scream from the highest mountain that her father invests PFD funds and his company will not loan capital to NorthSlope oil extraction . That alone should disqualify Carlyle Group from investing PFD funds .

    It’s either folks are too stupid to realize what’s going on or corrupt to the core . Either is bad ?

    What do you say Mr Governor ! This F&$@ing BS !

      • You vote Libertarian and you dilute the vote for Republicans and Libetarians. You then get a governor like Gavin Newsom or Jay Inslee.

    • Dan
      We woulda just ‘FIRED’ those whinny leakers (remember?).
      That’s what needs to happen in this situation too.
      … “NO” deflection!
      … “NO” whinners!
      … Everyone, get back to work NOW!
      Problem solved!

      • Give one one single reason that the Rubinstein daughter is qualified to be on PFD board . This screams corruption . How could the governor even consider her qualified for the position .

        No one wants to also comment that her fathers financial group with not fund drilling on the NorthSlope while handling billions of dollars in the peoples fund . That alone should should ban the Carlyle group , BlackRock , WellsFargo and Vangaurd from investing the peoples fund that was created from NorthSlope oil revenues !

        I would question anyone on the PFD board about this ? Crazy

  10. Corruption of finance and media..undue political influence. That family really isn’t doing the racial stereotype any favors! Lmfao

  11. No need for calling an Executive Session when discussing the public’s business! And what the hell did anyone expect when they appointed a woman with family ties to a multi-national hedge fund to the PFD Board? The camels nose inside the tent? I’d say the entire animal is living in the tent by now!

  12. It’s past time to put an end to this farce. Give us 1/2, even 1/3 of the PF. Let us do what we will with it. The state can have the remainder, corpus and all, and spend it out of existence.

  13. One of the worst things you can do is to know exactly where a large fund such as the PF is investing its money. That is exactly how other financial interests will move to either enhance their own profits or dilute the profitability of the original investment by piling on. I hate the Carlyle Group, too, but it is really profitable and the business of the PF is to increase its corpus if indeed the PF is into that fund. Making money, sadly, is not about goodness. It is about cold, hard investment that increases as rapidly as possible and holds its increase as it continues to grow. Period. That’s why money is also the root of all evil. Investment funds like the PF have to continue to grow no matter what the economy does and they have to seek out the best and most solid means to do so. It is about money and profit, nothing else. Abolishing the PF only means heavy taxation for every Alaskan. Think before you leap.

Comments are closed.