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Sat September 16, 2006

Arizona's treasurer in trouble

 
 
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By Nolan Clay
The Oklahoman
The state treasurer of Arizona is in trouble for his involvement with an Oklahoma City-based nonprofit organization that encourages the development of good character.

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"That's ... the irony," David Petersen said. "I was promoting character, and yet now they're asking me about my character."

The Republican treasurer chose not to run for re-election this year after Arizona's attorney general began a probe of his actions on behalf of the Character Training Institute. Special agents seized records from his state offices at the Capitol in February.

"It is a still pending criminal investigation," said Andrea M. Esquer, the attorney general's press secretary.

At issue is whether Petersen used state resources and traveled at state expense to promote the Character First! program. Making the accusations are his former executive assistant and others.

Petersen was paid about $4,000 in commissions by the nonprofit group over six years, beginning when he was a state senator. He was paid for promoting a Character First! curriculum to Arizona schools.

"My motives were certainly in the direction of building character ... around the state," he said. "They are addressing the way I did it ... did it cross any lines. ... They're talking about theft, conflict of interest and fraud. Would I have done it a little bit differently, knowing the trouble it's put this office through, put me through? I certainly would have been more careful," Petersen said. "Do I feel like I'm guilty of any crime? No."

The Character Training Institute has been a nonprofit, tax-exempt organization since 1999 with a mission to promote character education in businesses, schools, families, communities, and other organizations.

Character Training Institute has turned over records about Petersen to the Arizona attorney general, said the institute's secretary/treasurer, Kent Fahrenbruck. The records deal with "what we paid to him" and "what he paid to us for material purchases." Fahrenbruck said Petersen is "not a bad guy at all." He said he does not know if Petersen did anything wrong.

"If he broke the law, he needs to be dealt with," Fahrenbruck said. "It's wonderful to have the passion but it's also important to know the rules. ... It's not like he was in it for the money but, still, if there's laws against it, he needed to be aware of it."

Government officials, including Lt. Gov. Mary Fallin, Oklahoma County Sheriff John Whetsel and Oklahoma County District Attorney Wes Lane, have spoken at Character First! events.

They were not paid for speaking, Fahrenbruck said.

Fallin asked after her mother died last year that, in lieu of flowers, donations be made to Character First!

"Lieutenant Governor Fallin believes addressing character development is more important than ever and that Character First! has delivered the message effectively," her chief of staff, Nate Webb, said.

Lane said he took vacation time in 1999 -- while an assistant district attorney -- to travel to Romania for Character First! to speak to police officials there about incorporating character at their agencies. "We weren't getting paid anything to do it," Lane said. "It was spoken out of conviction. My wife didn't get to go or anything." Lane said of the nonprofit organization, "I think they're a wonderful group of people."

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