Sarah Palin's Legal Defense Fund was found to be illegal. From The Huffington Post:
Thousands of donors who contributed to a $390,000 legal defense fund for former Alaska Gov. Sarah Palin will get their money back after an investigator said Thursday the fund was illegal because it was misleadingly described on a website.
State Personnel Board investigator Timothy Petumenos said the Alaska Fund Trust inappropriately used the word "official" on its website, wrongly implying that it was endorsed by Palin in her role as governor.
During the press conference regarding the ethics complaint that prompted an investigation, a mass e-mail was sent out to donors to the illegal fund stating:
"... this ruling is nothing but a political hatchet job designed to embarrass Governor Palin, destroy her financially, and smear her good name. But YOU can help restore her good name!"
and this,
"So today we are starting over. Her legal bills are still there and growing. Will you please help her and give your very best gift to The Sarah Palin Legal Defense Fund today? It is urgent that we help relieve this crushing legal burden."
Great on-the-scene local coverage, as always from Mudflats in Alaska.
UPDATE: Andrew Sullivan has the money quote:
Judge Petumenous pointed out that the way the trust was written there was nothing to stop Palin from using the money for anything she wanted.
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