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Ethics commission fines, bans attorney from state employment

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The Indiana State Ethics Commission has found a former general counsel and chief administrative law judge for the Indiana Utility Regulatory Commission violated the law when he participated in decisions involving his future employer, Duke, while still with the IURC.

The ethics commission released its findings in a report Thursday, outlining the charges against Scott Storms. The inspector general charged Storms with violating Indiana Code Section 4-2-6-9(a) when he participated as an ALJ in the Duke Edwardsport case while knowing he had a financial interest in the case because he was negotiating employment with Duke at that time. He was also charged with violating the law when he participated as an ALJ in the Duke Smart Grid case after he learned he would become an attorney at Duke. Duke had a financial interest in both the Edwardsport and Smart Grid cases.

Storms ruled on the Duke cases in July 2010, and he began working at Duke in late September 2010. He was fired in early November 2010. His salary at Duke was $42,000 more than what he earned with the IURC.

The ethics commission found he violated I.C. Section 4-2-6-9(a) by participating in the matters and by not notifying his appointing authority of a potential conflict of interest or seeking an advisory opinion from the commission after he began negotiations for the open position at Duke. Storms also failed to file a written description detailing the nature and circumstances of the matter and make full disclosure of any related financial interest in the matter.

The ethics commission imposed a $12,120 fine, which was three times the amount of benefit Storms obtained from the $4,040 salary increase he received during his employment at Duke. He must pay the fine in full to the commission within 60 days. He is also banned from future employment with the state.

Duke’s Indiana president, Mike Reed, a former executive director of IURC, was fired at the same time as Storms as a result of this matter. Gov. Mitch Daniels fired IURC Chairman David Lott Hardy in October 2010 for not having Storms step down from Duke cases after learning Storms applied for a job with the company. Reed sent numerous emails and communicated with Storms and Hardy regarding Storms’ prospective employment.

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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