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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. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  4. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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