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FOR IMMEDIATE RELEASE: 09/10/2023 CONTACT: Max Croes907-570-2065

ANCHORAGE — In response to U.S. Senate candidate Dan Sullivan’s most recent misleading claims, Alaskans for Begich is releasing the following memo outlining Dan Sullivan’s failed tenure as Alaska attorney general including a history of letting violent criminals off with light sentences, cutting bad deals on behalf of Alaskans and undermining the rights of Alaska Natives.

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From: Alaskans for Begich, Campaign Manager Susanne Fleek-Green To: Concerned Parties Date: 9/10/2023 Subject: The Facts About Attorney General Dan Sullivan

Dan Sullivan’s disingenuous claims about his tenure as Alaska’s attorney general have repeatedly been found false, misleading or an outright exaggeration. The truth is that his real, failed record as attorney general doesn’t match the claims he makes on the campaign trail.In fact, a subsequent attorney general was forced to fix sentencing procedures used by Sullivan which resulted in light sentences and plea agreements.
And it wasn’t just his lack of leadership or results, but his attack on Alaska values that has landed Sullivan in hot water. Sullivan actively sued Alaska Native elder Katie John undermining Alaskans’ subsistence rights.
Most recently, Dan Sullivan has claimed he “stood up” to Wall Street in negotiating a pension deal for Alaskans. But after misrepresenting his record, he has been called out by teachers and public employees who believe Sullivan actually cost them billions of dollars by settling a lawsuit (for only twenty cents on the dollar) considered a winnable case. By comparison, the County of Milwaukee received twice as much as Alaska with $.45 cents on the dollar to Alaska’s $.20 on the dollar.

The Truth About Dan Sullivan’s Record as Attorney General:

Sullivan: “I’m Responsible For Everything That Happens In That Organization. . . . I’m A Big Believer In You Run An Organization, You’re Responsible For It.”

“Look, I’m responsible for everything that happens in that organization. I had over 240 attorneys, prosecutors. Every letter that goes out from that organization- every single letter- has the signature block Daniel S. Sullivan, Attorney General. Everything; every prosecutor, every motion, everything. . . . I’m a big believer in you run an organization, you’re responsible for it.” [Sullivan at Conservative Patriots Group, 3/27/14]

1. As Attorney General: Sullivan awarded violent criminals with light sentences

Sullivan “Promised Offenders Will Be Aggressively Prosecuted and Shown No Leniency.” As reported by the Anchorage Daily News, “Alaska ranks among the top five states for per-capita rates of domestic violence and the rate of Alaska women killed by a partner is 1.5 times the national average. Parnell’s attorney general, Dan Sullivan, promised offenders will be aggressively prosecuted and shown no leniency.” [Anchorage Daily News, 12/4/09]

Alaska Fell Short Of Properly Registering Sex Offenders Under Sullivan’s Leadership. “In the span of one hour the state reduces the charge against one sex offender and completely dismisses one against another sex offender. This comes after the governor and the state’s Attorney General vow to tackle the state’s sexual assault problem head one.” [KTVA, 3/11/10]

Department of Law Spokesman: “There Are Limited Resources…So You Have To Decide Which Offenders You’re Going To Go After.” As reported by KTVA, “‘In crimes, generally you have to make priorities,’ said Department of Law spokesman Bill McAllister. ‘You can only have so many jury trials. There are limited resources in the courts and in the department, so you have to decide which are the offenders that you’re going to go after, not offer deals and take them to trial.’” [KTVA, 3/11/10]

Sullivan’s Office Defended The Practice Of Letting Sex Offenders Off With Light Sentences. “While he served as Attorney General, it was revealed that AG Sullivan’s prosecutors were reducing charges against convicted sex offenders. His office defended this practice by saying the Department had limited resources and this was not a priority. Has the Party examined Dan’s apparent “softness” on issues regarding domestic violence when he was in a position to come down hard on these types of crimes?” [Former Alaska Speaker of the House Gail Phillips, Peninsula Clarion, 4/23/2014]

Department of Law Had to Reform Sentencing Policy After Sullivan’s Tenure, Said Prosecutors Would Not Negotiate Plea Deals For Serious Crimes and Domestic Violence. As reported by the Anchorage Daily News, “State prosecutors will no longer negotiate plea deals for lesser sentences for Alaskans accused of serious crimes and domestic violence, the Alaska Department of Law said Tuesday. The change of policy, which took effect Tuesday, bars plea bargains involving sentences for the most serious classes of felony cases, as well as all cases involving sexual assault, sexual abuse of a minor and domestic violence, said deputy attorney general Richard Svobodny.” [Anchorage Daily News, 7/23/13]

2. Sullivan left billions on the table in $2.8 billion pension lawsuit settling for $.20 on the dollar

2007: Alaska Filed Lawsuit Against Mercer Investment Company For $1.8 Billion After Bad Calculations Left State Pension Funds Underfunded. “As reported by the Juneau Empire, ‘The state of Alaska has filed a $1.8 billion lawsuit against the company it says is one of those responsible for an $8.4 billion shortfall in funds to pay employee retirement benefits. The state is claiming that Mercer, which it hired as an actuary to advise it on issues such as how much money it needed to put away for its public employee and teacher retirement plans, badly underestimated the amount. The state said Mercer even made math errors in its calculations [Juneau Empire, 12/7/07]

2010: State Increased Asking Damages Up To $2.8 Billion After Additional Errors Were Found. [Juneau Empire, 6/13/10]

Juneau Empire: “The State Is Giving Up Claims Potentially Worth Billions.” Reported the Juneau Empire in June 2010, “In exchange for the $500 million settlement, which will net the state $403 million after legal expenses and fees, the state is giving up claims potentially worth billions.” [Juneau Empire, 6/13/10]

Sullivan Called $500 Million Settlement from Mercer Inc. “Fantastic.” In June 2010, The Peninsula Clarion stated, “Alaska officials announced late Friday that they’d won a record actuarial malpractice settlement from a consulting firm they say knowingly gave bad advice to the Alaska Retirement Management Board, costing the state billions. Mercer Inc., the actuarial consulting subsidiary of the huge Marsh & McLennan Companies Inc. insurance brokerage firm, has agreed to pay $500 million to the state, Attorney General Dan Sullivan announced at an Anchorage press conference. ‘We think this is a fantastic settlement for the state,’ he said, adding that the previous record actuarial malpractice claim was $110 million.” [Peninsula Clarion, 6/15/10]

Sullivan’s Mismanagement Of The Deal And Inability To Return Sufficient Resources To The Pension Fund Put The Alaska Permanent Fund At Risk. “In Alaska, public employee pensions, such as those for teachers, are contractual obligations protected under the Alaska Constitution. If the retirement trust funds don’t have enough money available to make pension payments, other state assets, such as budget reserves or the Alaska Permanent Fund, may be tapped for that purpose.” [Alaska Dispatch News, 9/6/14]

3. Sullivan actively pursued lawsuits against Alaska Native rights and tribes

Dan Sullivan Sued Katie John And Tried To Undermine Subsistence Rights. “… Sullivan waged war on subsistence rights by carrying on the Katie John litigation and seeking to overturn a prior court decision affirming the federal government’s retained authority to manage subsistence fisheries in Alaska. As most Alaskans know, Katie John was a revered Ahtna elder who fought tenaciously to protect her right to subsistence fish on her Native allotment in the Wrangell-St. Elias National Park and Preserve.” [Heather Kendall-Miller, Alaska Dispatch News, 08/31/2014]

June 2010: Sullivan Filed 208-Page Legal Brief Appealing District Court Decision In Katie John Case. [Katie John et al v. State of Alaska et al – State of Alaska Opening Brief, filed 6/4/10]

Sullivan And His Hired Gun Made The Extreme Argument That The Tribal Court Had No Jurisdiction To Protect Its Own Village Children.” Fortunately, not only did Alaska lose that case, the state was later forced to pay Kaltag’s attorneys’ fees. Sullivan’s hostility to tribal sovereignty was palpable in the state’s brief, even when the welfare of a small child hung in the balance.” [Heather Kendall-Miller, Alaska Dispatch News, 08/31/2014]

State Senator Called State Intervention In Kaltag Case A “Slap In The Face” To Natives Of Alaska. As reported by the Anchorage Daily News, “‘The facts in Kaltag are this,’ said Wielechowski. ‘You had a mom who was convicted of murder and was a drinker. You had a dad who wanted nothing to do with the child. You had the Kaltag tribe that took custody of the child, adopted her to residents who lived in Huslia. All participants consented to the tribal court doing this, all were Native, no one raised any concerns about the due process provided by the tribal court. The child is 10 years old, happy and healthy with the family, and the state comes in and wants to stop this.’ ‘Quite frankly to the Natives of Alaska, I think this is a slap in the face,’ Wielechowski said.” [Anchorage Daily News, 3/11/10]

4. Sullivan settled secret deal with a Chicago accounting firm that lost personal information of 77,000 Alaska state employees while working on lawsuit

Under Sullivan’s watch, the state left 77,000 Alaska state employees vulnerable to a massive security breach. State employed Chicago accounting firm that lost “names, birth dates and Social Security numbers of 77,000 people” (Daily Newsminer, 01/30/2010).

Sullivan rushed to settle with Chicago firm, instead of pursuing lawsuit for the state security breach. In January 2010,KTVA stated, “Attorney General Dan Sullivan says the company has known about the breach since early December, but just informed state officials days ago. ‘Let’s just say when I heard about it, and they originally knew about it, I wasn’t- we weren’t pleased,’ Sullivan says. ‘And the initial phone call from me to PricewaterhouseCoopers wasn’t very pleasant.’ With the large volume of possible identity theft victims, the state felt making this announcement was the quickest way to distribute the information. ‘We wanted to get notice out to affected individuals as soon as we could, which from our perspective is really as much of a notice event as it is a press event,’ Sullivan says…With so many potential victims, instead of pursuing a lawsuit the state felt a settlement would more quickly bring justice to victims. [KTVA, 1/28/10]

Headline: “Alaska public employees union criticizes data loss deal.” (Associated Press 03/04/2024) Sullivan cut a bad deal for Alaska state employees who were victims of security breach - As reported by the Fairbanks Daily Newsminer, in a letter to the administration sent Thursday, the Alaska State Employees Association criticized the state’s settlement with PricewaterhouseCoopers LLP for being too passive and too limited Specifically, it wants the affected people to be automatically enrolled into the firm’s credit protection services, instead of being required to opt-in. The union also questioned why those services will only be available for a minimum of two years, though consequences of the data loss may pop up long after the services expire.(Associated Press03/04/2024)

Security breach came in the midst of of the failed effort to resolve the state’s claims against Mercer. In January 2010, a press release by Attorney General Sullivan stated, “The information on Alaska public employees and retirees originally was maintained by Mercer, the former longtime actuary for the state, who provided financial projections for the state’s retirement systems. The state is suing Mercer in connection with the services it had previously provided the state. As part of the discovery process in the lawsuit, a law firm representing the state requested Mercer’s modeling and analysis of the state’s future retirement obligations. This modeling information contained the personal data. In the ongoing litigation, the law firm then turned that information over to the state’s experts, PricewaterhouseCoopers, for use in evaluating Mercer’s actuarial models. In early December, PricewaterhouseCoopers discovered that the information was missing. The state was notified of PwC’s security failure last week and obtained the data files containing specific information about the Alaskans involved Friday. As soon as officials in the Department of Law became aware of this breach, they began intensive discussions and negotiations with PricewaterhouseCoopers regarding efforts to locate the missing information and to put in place protections for Alaskans.” [Attorney General Sullivan Press Release, 1/28/10]

 

ANCHORAGE — After spending and raising nearly half a million dollars for U.S. Senate candidate Dan Sullivan, the anti-Alaska Club for Growth is calling for a government shutdown.

Dan Sullivan wholeheartedly endorsed the Club for Growth’s agenda with a TV ad touting their endorsement. The Club for Growth returned the favor with nearly $200,000 in TV ads and mailers and over $200,000 in donations.

“In a secret meeting Dan Sullivan agreed to represent the Club for Growth’s dangerous agenda of privatizing Social Security, turning Medicare into a voucher system and shutting down the government. Alaska’s families, fishermen and rural communities know shutting down the government has disastrous consequences for Alaska,” said Max Croes, Alaskans for Begich Communications Director.

The anti-Alaska Club for Growth has previously spent over $1 million in Alaska trying to defeat Congressman Don Young and U.S. Senator Lisa Murkowski. Young once called the Club “one of the most extreme groups in Washington D.C.”

Sullivan still refuses to share any details of what promises were made to the Club for Growth in a secret Washington D.C. interview process known as a “policy murder board.”

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FOR IMMEDIATE RELEASE: 09/09/2023
CONTACT: Max Croes907-570-2065

ANCHORAGE — U.S. Senate candidate Dan Sullivan had no defense for the tax credit investigation announced in Maryland last week. Sullivan declared his $1.3 million Maryland home his “principal residence” in 2006, an act a Maryland tax assessor says was done “under the penalty of perjury.”

Sullivan’s residency declaration conflicts with pending claims to have been a 17 year resident of Alaska who voted in Alaska while declaring his principal residence in Maryland.

“Alaskans can’t trust Dan Sullivan to be straight with them about who he is – let alone answer questions about his taxes and what he would do as a senator. If Dan Sullivan can’t be honest with Alaskans about where he lived, voted or paid taxes what can he be honest about?,” said Max Croes, Communications Director for Alaskans for Begich.

Sullivan has made five differing declarations about his residency since 2009 including a claim of 17 years of continuous Alaska residency. In private communications Sullivan has acknowledged that he did not live in Alaska between 2002 and 2009. A fact he affirmed when applying for a non-resident Alaska fishing license in 2009.

An interview with Maryland tax assessor Robert Young by the Fairbanks Daily News-Miner is drawing attention to these complications:

When the Sullivans bought the house in 2006, he and his wife, Julie, signed a sworn statement — under penalty of perjury — that the home would be their primary residence, according to documents provided by the Begich campaign.

Young, the Maryland tax assessment director, said that document supported granting of a tax credit that year and subsequent other credits in 2007 and 2008. There was also a change in state law making the requirements stricter and the application process less ambiguous, Young said.

Alaskans for Begich recently released a memo outlining Dan Sullivan’s Maryland problems. A KTUU fact check echoed similar concerns about conflicting claims Dan Sullivan has made about his residency, asking: “So how long has Sullivan been in Alaska? It’s tough to say exactly.”

“They’re not from Alaska, but they’re trying to buy Alaska’s U.S. Senate seat.”

FOR IMMEDIATE RELEASE: 09/09/2023
CONTACT: Max Croes907-570-2065

ANCHORAGE — Alaskans for Begich has released a Buzzfeed list underlining the Koch Brothers efforts to buy Alaska’s senate seat by highlighting their decidedly anti-Alaska history of shuttering a refinery, slashing 80 jobs, driving up the price of asphalt and spending millions on attack ads that could have been used to keep the refinery open.

 

The Koch brothers and Outside groups like them are spending $12 million on attack ads in Alaska in support of Dan Sullivan. The Kochs were mocked for using a Maryland actress in an Alaska TV ad and their operatives showed an lack of knowledge about Alaska by awkwardly calling Alaska a “peninsular” state in a secret meeting. The meeting, leaked to the media, revealed the Kochs intent to buy Alaska’s senate seat by dumping millions on to the airwaves.

 

“History shows that since 1990, no candidate who has skipped the Kodiak fisheries debate has gone on to win their election.”

FOR IMMEDIATE RELEASE: 09/08/2023
CONTACT: Max Croes907-570-2065

ANCHORAGE — Despite the tens of thousands of jobs Alaska’s fisheries provide, U.S. Senate candidate Dan Sullivan will be “too busy” to participate in the Kodiak Chamber of Commerce’s fisheries debate, an Alaska tradition for statewide candidates dating back to 1990. Sullivan has no standing commitments on the day of the October 1 debate.

“It is the second time this year that Sullivan has declined to participate in the Chamber of Commerce event that has been an election year tradition since 1990.” [Welch, Alaska Dispatch News, 9/8/2023]

Alaska’s commercial fisheries are worth billions of dollars and are Alaska’s largest private employer. Sullivan’s unwillingness to debate raises serious questions about his understanding of a unique Alaska industry vital to life in Alaska’s coastal communities.

“I can’t recall a time that a candidate has not participated in the Kodiak debate. It’s a must-do for statewide candidates. It’s not an option. It’s clear he doesn’t have the same Alaska values as we do when it comes to our fisheries, and I think he is doing an incredible disservice to Alaskans,” said Senator Mark Begich.

Republican primary opponent Mead Treadwell regularly raised concerns about Sullivan’s knowledge of Alaska fisheries and the need for a U.S. Senator who has a full understanding of the industry and diverse fishing interests.

Senator Begich continues to amass support from the fishing industry, touting a rare endorsement just this week from the Purse Seine Vessel Owners Association (PSVOA), whose Executive Director praised Begich for his “deep interest in the commercial fishery and its importance in maintaining sustainable coastal communities.” Begich is also endorsed by the United Fishermen of Alaska.

As chairman of the U.S. Senate Commerce Subcommittee on Oceans, which has jurisdiction over federal fisheries management, Mark Begich is proud to play a leading role in reauthorization of the Magnuson-Stevens Act which will help protect and strengthen Alaska’s fishing industry.

Read Laine Welch’s article below:

 

Laine Welch: Sullivan will miss Kodiak fisheries debate

September 8, 2023

“Surprised and disappointed” was the reaction by Sen. Mark Begich upon learning that his opponent Dan Sullivan has bowed out of an Oct. 1 fisheries debate in Kodiak. It is the second time this year that Sullivan has declined to participate in the Chamber of Commerce event that has been an election year tradition since 1990.

“I can’t recall a time that a candidate has not participated in the Kodiak debate,” Begich said as he readied to head back to Washington, D.C., on Friday. “It’s a must-do for statewide candidates. It’s not an option. It’s clear he doesn’t have the same Alaska values as we do when it comes to our fisheries, and I think he is doing an incredible disservice to Alaskans. But that is his MO. He avoids issues, only shows up at very controlled settings, and talks in bumper stickers and applause lines, and that’s all he likes to do.”

Sullivan campaign manager Ben Sparks told debate organizers that Sullivan does not have a prior commitment keeping him from the fisheries debate, but that “he is just too busy with all the traveling he is doing.” The two-hour debate is broadcast live to over 330 Alaska communities.

“I think it’s a shame because Alaskans will miss out on a forum that focuses on the largest employer in the state,” Begich added. “Seafood is our biggest export by far and nearly 85 percent of all the fish caught in Alaska comes from waters that are under federal jurisdiction. If you can’t even have a debate, how do Alaskans know where he stands?”

Sullivan already has a reputation for shunning Alaska media and was criticized last week for avoiding a debate on Native rights issues in Juneau.

“The Alaska way is to debate fiercely, discuss, find solutions to challenges, and move forward. It is not to abandon, run, hide and not talk to people who might disagree with you,” Begich retorted. “You have to show up in order to work together. He is unwilling to talk about issues that are important to Alaska, and leaving thousands of Alaskans wondering where he stands.”

The fisheries debate will go on, said Trevor Brown, executive director of the Kodiak Chamber of Commerce.

“We have pre-sold lots of sponsorships and lined up all the radio stations. Sen. Begich will be there, and hopefully, other third party U.S. Senate candidates. We also are talking about adding an hour for U.S. House candidates Don Young and Forrest Dunbar if both can make it,” Brown said.

History shows that since 1990, no candidate who has skipped the Kodiak fisheries debate has gone on to win their election. Case in point: Sean Parnell vs. Don Young in 2008.

FOR IMMEDIATE RELEASE: 09/08/2023

ANCHORAGE- An Outside group run by Karl Rove is distorting history in its continued efforts to buy Alaska’s senate seat for Dan Sullivan fueled by millions of dollars in secret money. The latest attack hurls distorted “facts” in an attempt to discredit Mark Begich’s successful two terms as Anchorage mayor.

In 2003 Begich inherited a $33 million debt, which he turned around by working with the Anchorage Assembly and city employees. Begich’s financial stewardship earned Anchorage a “AA” bond rating and put the city in a strong position to withstand the nationwide recessions and stock market crash that devastated cities across the country.

“Mark Begich turned around a $33 million debt he inherited when he became mayor of Anchorage while making record investments in Anchorage roads, improving Anchorage’s small business climate and building a new convention center and worked to strengthen the community. Mark Begich didn’t waste time by pointing fingers as mayor, he took action and turned the city around,” said Max Croes, Communications Director for Alaskans for Begich. “When Dan Sullivan shot a TV ad on top of the Dena’ina Center calling for a Senator who gets ‘results’ he proved he knows little to nothing about what Anchorage and Mark Begich have accomplished in the last decade and what needs to be done in the next decade.”

The attack ad comes from Crossroads GPS an organization attempting to buy Alaska’s U.S. Senate seat for Dan Sullivan. The organization proved earlier in the year it knows little about Alaska when attempting to turn the tragic Arizona VA scandal into a political attack in Alaska.

Here’s what residents of Anchorage are saying about Mark Begich’s time as mayor:

“Senator Begich’s terms as mayor brought a safe and vibrant downtown Anchorage that was ideal when my partners and I started our business. He truly cares about Alaska and fashioned a positive climate for small businesses like mine. Little did I know in working with him on getting the convention center built, that I’d be creating a booming clientele of convention goers who support my restaurant and the Anchorage/Alaskan economy as a whole. Senator Begich has my full support to keep fighting on the DC front to keep our Alaskan economy going strong,” said successful Anchorage small business owner, Scott Anaya.

“Everyone knows that Anchorage is Mark’s hometown and he’s very proud of this city. Skeptics said Anchorage would never have a new convention center, but he built the Dena’ina. He built more roads than any other mayor, plowed our streets and invested in schools. Mark helped make Anchorage the city we all believed it can be,” said Anchorage real estate broker, Art Clark.

Here is how the Alaska’s largest newspaper, the Anchorage Daily News (now Alaska Dispatch News), reported on Mark Begich’s tenure as Anchorage’s mayor:

Anchorage Daily News Editorial: “Our view: Fine job, Mr. Mayor.”[Editorial, Anchorage Daily News, 1/3/09]

Anchorage Daily News: “Anchorage maintains its high rating on short-term bonds.” [Anchorage Daily News, 2/8/10]

Anchorage Daily News Ad Analysis Confirmed City Of Anchorage Added More Than 9,000 Jobs During Begich’s Tenure As Mayor. [Anchorage Daily News, 8/17/08]

Anchorage Daily News 2008: For First Time In 10 Years, Taxes Paid By Average Anchorage Homeowner Dropped By 3%.[Anchorage Daily News, 3/30/08]

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FOR IMMEDIATE RELEASE: 09/08/2023

ANCHORAGE — Today, the U.S. Senate is considering a constitutional amendment to overturn the Supreme Court’s Citizens United ruling to stop corporations and billionaires, like the Koch brothers, from spending unlimited amounts of money to buy our elections. Mark Begich wants to overturn the flawed court ruling that granted corporations the same rights as people.

Dan Sullivan continues to support unlimited spending by corporations and billionaires in elections.

“Outside groups like the Koch brothers and Karl Rove have committed to spend nearly $10 million additional dollars in Alaska between now and election day. It’s clear they’ll do anything to buy Alaska’s senate seat for Dan Sullivan. It’s outrageous the Kochs kill Alaska jobs by closing the Flint Hills refinery while spending millions on ads attacking Mark Begich,” said Max Croes, Communications Director for Alaskans for Begich.

Mark Begich supports a constitutional amendment to permanently overturn the CitizensUnited ruling and has signed theWe The People Alaska pledge stating his belief that corporations are not people.

Begich has supported transparency efforts such as the DISCLOSE Act, legislation Dan Sullivan does not support, and supports Alaska state law which requires ads to disclose top donors.

Here’s what’s been said about Sullivan’s support for unlimited spending by corporations:

Fairbanks Daily News-Miner:

The disharmony between Sullivan’s stances on political campaigns in general and the specific race he is running this fall is peculiar, and doesn’t support his stated intentions in seeking the agreement… But we can’t square that intention with the facts of how this year’s Senate race is being conducted — and with Mr. Sullivan’s unwillingness to support limits on campaign finance in races other than his own. [Fairbanks Daily News-Miner Editorial, 6/15/2014]

Alaska Commons:

Dan Sullivan’s ‘Alaska Agreement’ More About Politics than Fairness[Alaska Commons, 6/13/2014]

Washington Post:

On the conference call, Sullivan was repeatedly asked whether he supports” Citizen’s United.” Without answering directly, Sullivan responded that he supports “strong Supreme Court court decisions that strengthen free speech.” Afterward, he affirmed his support for “CitizensUnited” in a tweet. [Washington Post, 6/10/2023]

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FOR IMMEDIATE RELEASE:

ANCHORAGE — A claim check by the Alaska Dispatch News confirmed U.S. Senate candidate Dan Sullivan left billions of dollars on the table when he ‘personally’ settled a pension lawsuit returning only $.20 on the dollar to Alaskans who deserved $2.8 billion.

Sullivan claims to have fought Wall Street on behalf of Alaska’s teachers in his new ad for settling the Mercer case as attorney general. In reality, Sullivan overlooked the needs of hardworking Alaskans and public employees by paying nearly $100 million to an Outside law firm and returning an undervalued figure of $400 million to Alaska in the settlement.

Alaska teachers have spoken out against Sullivan’s misleading ad noting Sullivan’s “loyalties are not with Alaska” and that he had to “re-write history about his role in costing our retirement fund billions of dollars.” The price tag of the settlement also fell short of what other suits delivered. The County of Milwaukee received $.45 on the dollar compared to Alaska’s $.20.

The claim check by the Alaska Dispatch News states:

“As attorney general, Sullivan told legislators that the state’s case was “amazing” and that the discovery of fraud on Mercer’s part greatly strengthened the case. Alaska’s New York law firm was “stunned” by what it found Mercer had done, he said. Sullivan defended his use of the word “fraud” to describe Mercer’s actions. I don’t throw that word around lightly,” he told legislators. In addition to the state’s original claims, punitive and treble damages related to fraud could have driven the claims against Marsh & McLennan higher, legislators were told. But months later, Sullivan signed the settlement agreement for billions less than had been sought.” [Alaska Dispatch News, 9/5/2023]

The Alaska Dispatch also asserts that Sullivan’s mismanagement of the deal and inability to return sufficient resources to the pension fund put the Alaska Permanent Fund at risk, which may have to be tapped as a reserve to make up for the shortfall:

“And neither the actuarial errors nor the financial crisis cited by teacher Leslie Moore resulted in a “big hit” to her pension or threatened other teachers’ pensions. In Alaska, public employee pensions, such as those for teachers, are contractual obligations protected under the Alaska Constitution.

“If the retirement trust funds don’t have enough money available to make pension payments, other state assets, such as budget reserves or the Alaska Permanent Fund, may be tapped for that purpose.” [Alaska Dispatch News, 9/5/2023]

Sullivan’s dishonest claims come on the heels of investigation into improper tax breaks Dan Sullivan received while living in Maryland but voting in Alaska.

Read the full article below:

Alaska Dispatch: Claim Check: Sullivan ‘fought back’ against Wall Street
Pat Forgey
September 6, 2023

Claim Check will regularly examine ads through the 2014 Alaska election season

The ad: “Alaska Teachers”

Who’s running it: Sullivan for U.S. Senate

First aired: Sept. 4

Spending: Campaign declines to say

In the ad, Anchorage teacher Leslie Moore said her pension took a big hit during the financial crisis, but she praises U.S. Senate candidate and former Alaska Attorney General Dan Sullivan for having “fought back” against Wall Street.

The Sullivan campaign says the statement about fighting back refers to a settlement that Alaska received for the state’s retirement trust funds while he was attorney general.

But the settlement that Sullivan claims credit for was unrelated to the financial crisis and actually stems from a lawsuit over bad actuarial advice an insurance brokerage gave to Alaska more than a decade ago. Alaska’s lawsuit seeking damages was filed in 2007, well before Sullivan’s 2009 appointment as attorney general. And Sullivan’s own role in that settlement is controversial as well.

In 2010, Sullivan settled that suit for $500 million, which after lawyers’ fees and costs resulted in $403 million going into the retirement trust funds.

While Sullivan called the settlement “fantastic” when it was announced, not everyone thinks it is so fantastic. During the last legislative session Sen. Johnny Ellis, D-Anchorage, called it “scandalously low.”

The state had originally sought $2.5 billion to $2.8 billion in compensation, depending on certain factors.

The “Wall Street” firm to which Sullivan’s ad refers would be Marsh & McLennan Companies, whose Mercer Inc. subsidiary provided bad actuarial advice to the managers of the Public Employees’ Retirement and Teachers’ Retirement Systems.

That bad advice partially contributed to the state’s billions in unfunded retirement liabilities that have plagued the state since the errors were discovered, state officials said.

And that advice was not just bad, but knowingly bad, Alaska lawyers said, because when Mercer discovered its own error they continued to provide flawed data the next year as well so as to not have to explain the previous year’s errors and possibly be fired. Alaska later fired Mercer anyway.

As attorney general, Sullivan told legislators that the state’s case was “amazing” and that the discovery of fraud on Mercer’s part greatly strengthened the case. Alaska’s New York law firm was “stunned” by what it found Mercer had done, he said.

Sullivan defended his use of the word “fraud” to describe Mercer’s actions.

“I don’t throw that word around lightly,” he told legislators.

In addition to the state’s original claims, punitive and treble damages related to fraud could have driven the claims against Marsh & McLennan higher, legislators were told.

But months later, Sullivan signed the settlement agreement for billions less than had been sought.

So, what exactly was Sullivan’s role in the Mercer case? In discussing the ad on Juneau radio station KINY this week, Sullivan claimed credit and referred to “a half-billion dollar settlement that I got from one of the biggest Wall Street firms when I was attorney general.”

Sullivan spokesman Mike Anderson said Sullivan personally negotiated the settlement.

Both the ad and Sullivan neglect to say who did the work on that case: Alaska Department of Law attorneys worked on the case for years before Sullivan became attorney general, and outside attorneys were later paid $90 million in fees on the case. The entire Department of Law budget, covering 572 employees, is $59 million this year.

And neither the actuarial errors nor the financial crisis cited by teacher Leslie Moore resulted in a “big hit” to her pension or threatened other teachers’ pensions. In Alaska, public employee pensions, such as those for teachers, are contractual obligations protected under the Alaska Constitution.

If the retirement trust funds don’t have enough money available to make pension payments, other state assets, such as budget reserves or the Alaska Permanent Fund, may be tapped for that purpose.

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FOR IMMEDIATE RELEASE: 09/07/2023

ANCHORAGE — This week U.S. Senate candidate Dan Sullivan released a television ad bragging about his decision to settle a pension lawsuit for twenty cents on the dollar, costing Alaska over $2 billion. The Sullivan ad offers a glaring misrepresentation of his role in the Mercer lawsuit he “personally” settled to the detriment of hardworking Alaskans.

As attorney general, Sullivan proclaimed nearly certain victory in a lawsuit to reclaim billions in damages from the Wall Street Company, Mercer. Dan Sullivan even testified to the state legislature that the state was in line to receive over $2 billion. Yet he went on to cut a deal awarding Alaska an undervalued figure of $400 million while paying out nearly $100 million to the New York City law firm hired for the case. Alaska received 20 cents on the dollar. By comparison, Milwaukee County received 45 cents on the dollar for a similar lawsuit against Mercer.

Here’s what educators in Alaska have to say about Dan Sullivan’s misleading claims:

“Dan Sullivan assumes Alaskan teachers are fools if he thinks we’re going to let him re-write history about his role in costing our retirement fund billions of dollars. I have been teaching in Alaska for 25 years and I know that members of the ARM board were extremely upset when Sullivan bailed out of a lawsuit against the actuarial firm that was giving the State bad advice regarding the Teacher‘s Retirement System. Sullivan’s bad decision cost us billions of dollars back then and continues to adversely affect the Alaskan education system today. Teachers are working hard to educate Alaska’s children and make our state a better place to live. Mark Begich is working hard to help support Alaskan teachers and improve our working conditions. Dan Sullivan’s decisions have worked against us,” said Fairbanks public school teacher Larry Ehnert.

“Dan Sullivan settled the Mercer lawsuit on the backs of thousands of hardworking Alaskans. His decision to settle cost Alaskans over $2 billion and he paid almost $100 million of the settlement to an Outside law firm. When you take actions like that, you send a clear message that your loyalties are not with Alaska,” said Peggy Wilcox of APEA/AFT.

“No one to date is responsible for “rescuing” the pension system from failing. Especially not Dan Sullivan,” said 24 year Anchorage public school teacher, Marilyn Pillifant.

“Dan Sullivan sold us out when he settled a case he spent months proclaiming was due for certain victory with a potential award of $2 billion. If Dan Sullivan calls accepting 20 cents when you’re owed a dollar a victory then we must have different definitions of the word. I spent 32 years in the classroom and paid into the state’s retirement system, it took one year as attorney general for Dan Sullivan to sell out my future,” said retired Anchorage teacher, Rod McCoy.

“As attorney general, Dan Sullivan agreed to a gross deal for the thousands of Alaskans with a stake in our state retirement system after saying he would win the Mercer lawsuit. Sullivan delivered nearly $100 million of our money to a New York City law firm after making a decision not to pursue the corrupt folks at Mercer for the estimated $2 billion in damages. Alaska’s public employees deserve better than Dan Sullivan,” said Alaska State Employees Association Executive Director, Jim Duncan.

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FOR IMMEDIATE RELEASE: 09/06/2023

ANCHORAGE — Mark Begich recently received a rare endorsement from the Purse Seine Vessel Owners Association (PSVOA) for reelection to the U.S. Senate.

Bob Kehoe, the Executive Director of PSVOA had this to say of Mark Begich, “Commercial fishing issues are complex and it is rare that an elected official will learn the details and take informed action based on that understanding. Senator Begich has a deep interest in the commercial fishery and its importance in maintaining sustainable coastal communities. He’s demonstrated an ability to thread together common-sense actions addressing fishing issues.”

In a recent interview with KDLG in Dillingham regarding the PSVOA endorsement Bob Kehoe elaborated on the Association’s support,

“Given Senator Begich’s track record, position on important committees, support, and real interest and value in the commercial fishing industry, we thought it was important to come out and support him…he was one of the main sponsors on a very important piece of legislation concerning exempting commercial fishing vessels from Clean Water Act requirements, I mean that is a huge issue. He has helped in getting some temporary extensions in place and took the bull by the horns and went out and was a prime sponsor and got a lot of key senators to join him. On Pebble Mine, he came out and publicly said that Pebble Mine was not a good idea for the Alaska fishing industry. Not many politicians have come out and said that in Alaska.”

As chairman of the U.S. Senate Commerce Subcommittee on Oceans, which has jurisdiction over federal fisheries management, Mark Begich is proud to play a leading role in reauthorization of the Magnuson-Stevens Act which will help protect and strengthen Alaska’s fishing industry.

PSVOA, established in 1936, represents seafood harvesters in Alaska and along the West Coast. Although salmon is their dominant concern, many members operate in multiple fisheries including crab, cod and halibut. PSVOA promotes policies supporting the economic viability of its members and of their communities.

The PSVOA endorsement can be found below.

Purse Seine Vessel Owners Endorse Mark Begich

The Purse Seine Vessel Owners Association (PSVOA) announces their endorsement of Senator Mark Begich for re-election to the United States Senate.

“Senator Begich’s record of service to the commercial fishing industry and fishing-dependent coastal communities in Alaska provides more than enough justification to send him back for a second term.

With this endorsement, PSVOA recognizes Senator Begich’s efforts to look out for Alaska’s fishing businesses and coastal communities”, said Bob Kehoe, Executive Director.

“Commercial fishing issues are complex”, Kehoe said, “and it is rare that an elected official will learn the details and take informed action based on that understanding. Senator Begich has a deep interest in the commercial fishery and its importance in maintaining sustainable coastal communities. He’s demonstrated an ability to thread together common-sense actions addressing fishing issues.”

PSVOA appreciates Senator Begich’s important position as chairman of the Senate Commerce Subcommittee on Oceans, Atmosphere, Fisheries and Coast Guard as well as his role on the Appropriations Committee. Senator Begich addresses head-on the challenges facing the seafood industry. Senator Begich has been an advocate for fishermen throughout his years in the Senate; tackling issues of great importance to Alaska seine fishermen. “PSVOA notes Senator Begich’s impressive rise in stature in the U.S. Senate. He has shown a constant dedication to helping Alaska’s fishing families and businesses and the thousands of people that are employed by the seafood industry,” said Kehoe. For that reason, PSVOA is pleased to offer their hearty endorsement for Senator Begich’s in his re-election campaign.

PSVOA, established in 1936, represents seafood harvesters in Alaska and along the West Coast. Although salmon in their dominant concern, many members operate in multiple fisheries including crab, cod and halibut. PSVOA promotes policies supporting the economic viability of its members and of their communities.

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