A majority of Kentuckians favor a statewide smoking ban. Interesting that David Williams supports it and Steve Beshear does not. [WFPL]

The copilot in the Comair 5191 crash speaks in a new documentary film. [H-L]

There is a party in the pants of “Exodus International,” and nobody wants to come! And that is why the group has canceled its upcoming “Love Won Out” convention, in which ex-gay ladies show off their human male husbands, and ex-gay men show off Michele Bachmann. [Wonkette]

Let’s get something clear: Crit Luallen did have enough information from Richie Farmer’s employees to do a scathing audit like Adam Edelen did. Jack Conway even had information about wrongdoing. I know because I’ve discussed it with their staffers for years. With more than 100 people on staff, Luallen certainly had the manpower to conduct such an audit. And while we’re talking about Farmer… why aren’t we talking about corrupt former Democratic commissioners like Logsdon? [Joe Gerth]

Hillary Clinton says she wants to see a female U.S. President but that it won’t be her. [HuffPo]

Why is it so expensive to buy or sell a house in the United States? The foreigns take a hard look at it. [The Economist]

Just changing your name when you’re a mega bank with mega problems won’t solve anything. [Reuters]

Lawwwd, you can’t even rent your house out in Lexington without finding two dead bodies in it. [WKYT]

Also, you probably can’t even go anywhere in Lexington without catching the pertussis! Whatever that is. (Okay, we know it’s whooping cough, but go with it.) [WLEX18]

US hostage Warren Weinstein has pleaded with President Barack Obama to meet his captors’ demands in a video released by al-Qaeda’s media arm, says US monitoring group Site intelligence. [BBC]

Remember last week when he got our hands on that fancy letter about state payroll problems? The mainstreamers wouldn’t have seen it otherwise. Yes, we’re tooting our own horn. [Page One]

This is proof that craft beer in Kentucky is a hot ticket. Now, if only Kentucky would recognize that killing the silly label tax could seriously fatten the state coffers. [H-L]

Lately, her people and those who work with Jack Conway, say the two are considering a gubernatorial ticket with Crit as the Number Two. It’d give her more free time and freedom to be outside Frankfort when she wasn’t feeling the nastiness of that cesspool.

All this comes as Jack Conway also floats around his desire to run for the U.S. Congress (again) if/when John Yarmuth decides to retire.

Greg Fischer is also waiting in the wings and folks around him are hilariously tossing his name into the gubernatorial rumor ring. Can you imagine the hilarity that would ensue? There are at least half a dozen attack ads that Jim King didn’t run and twice as many that Hal Heiner wimped out on in 2010. It’d be a dream come true for political writers.

There’s also discussion about a prominent politician switching from one of the major parties to Independent status. With the rancor and distaste for electeds that the public has these days? We can only assume something like that could have a serious chance if there’s enough money available.

We think Daniel Mongiardo should give it a go.

Now you know why there was so much drama with the Lexington fire chief. The U.S. Department of Justice is investigating the Lexington fire department’s employment practices, city officials confirmed Monday. Susan Straub, naturally, is being dishonest with her response. The city has been aware of the investigation since its beginning – not just since April. [H-L]

Whattya mean Steve Beshear’s Cabinet for Health and Family Services fired someone because they were gay? Like you didn’t see that coming. Unfortunately, Kerri Richardson lied just like Susan Straub did. Steve Beshear’s entire office – including the governor and his wife – have been keenly aware of this case and the facts involved. Primarily since it’s all his gay staffers have been able to talk about for weeks. [C-J/AKN]

MOAA had its members “storm Capitol Hill” last week to urge legislators to block the Pentagon’s proposed reforms. But close analysis of the proposals from Defense Secretary Leon Panetta and the Joint Chiefs of Staff reveals that their critics’ arguments are baseless. [Politico]

Glencore — founded by famous fugitive Marc Rich — has cornered the market on just about everything. Now that it’s going public, will its ties to dictators and spies stand up to scrutiny? [Foreign Policy]

Yep, here’s yet another death/murder story about Laurel County giving Clay County a run for its money. [WKYT]

Ted Nugent is so mad that Fort Knox canceled his concert because he believes he is an American hero. [Wonkette]

No, Crit Luallen isn’t running for the U.S. Senate in 2014 against Mitch McConnell. She’s – according to her people and those who work for Jack Conway – talking to Jack about running as a gubernatorial ticket, however. Crit doesn’t want to be in Frankfort all the time so running as Jack’s lieutenant would give her more freedom and flexibility. [WFPL]

President Barack Obama’s campaign sought to make the death of Osama bin Laden a central part of the U.S. presidential election on Friday with a video that questioned whether Republican rival Mitt Romney would have made the same call to approve the mission that killed the al Qaeda leader. [Reuters]

Forget the teabaggers when it comes to taking on Mitch McConnell. There’s not even a solid Democrat who can take him on. [Politico]

Have you seen the reaction from Richie Farmer’s attorney? It’s actually sad to examine. What a hot mess that side is. Saying the audit is political and self-serving – ha. [H-L]

Nina Rhodes-Hughes, a key witness to the Robert F. Kennedy assassination at the Ambassador Hotel in 1968, is making bombshell claims in a CNN interview, suggesting that convicted murderer Sirhan Sirhan didn’t act alone. [HuffPo & CNN]

We all know that KRS is refusing to pay the attorneys of SEC whistleblower and now-former KRS board member Chris Tobe because, well, he’s an SEC whistleblower. It’s blatant retaliation.

Now, according to hot rumors all over Frankfort (though no one from KRS or from Tobe’s camp will speak on the matter), the Wisconsin law firm representing KRS is claiming it won’t pay Tobe’s KRS-related legal bills because he talked to the press. Was it because of our coverage here at Page One? Or was it because of what Tobe’s attorney wrote for Forbes? Because it all seems like a convenient excuse to us.

We warned against Crit Luallen’s decision to approve the KRS gag order and now the agency is using it for retaliation against a whistleblower. A whistleblower who could potentially save the Commonwealth of Kentucky billions of dollars. You’ll recall that Luallen reaffirmed and approved the nightmare in her less-than-stellar audit:

We recommend trustees follow the KRS Board bylaws to refer all news media inquires to the Executive Director and do not discuss matters that affect KRS or the board generally with the Media

The absolute furthest thing from transparency possible.

It was such a horrible mistake – purposeful or not – on Luallen’s part that it was one of the few times we criticized her. She reached out to us. Her staff reached out to us. Current Audit staff continue to act anxious with us when the topic comes up. That’s how hot a mess it is.

Kentucky Retirement Systems and its out-of-state law firm – in documentation we’ve seen – are bringing up a portion of the Kentucky Revised Statutes KRS has itself violated for at least three years. KRS 61.645(19) (c), which we’ve written about previously.

It’s a shame taxpayers are spending mad amounts of cash for this level of corruption.

Note: the ACLU of Michigan fought gag orders against college trustees. Other individuals and groups around the country have done the same. When will someone step up in the Commonwealth of Kentucky to do what’s right?

We, as taxpayers, cannot afford to allow this Get Out Of Jail Free Card from Crit to continue to be played.

Here’s a taste of the story, which is subscription-only (so we’re excerpting heavily) – UPDATE - the S-J released a free version:

When the Kentucky Retirement Systems Board of Trustees meets Thursday, it will be without one of the more outspoken trustees in recent years.

Christopher Tobe, a Louisville investment consultant, has been replaced as a KRS trustee by Daniel Bauer, dean of Bellarmine University’s School of Business, after Tobe’s four-year term expired March 31.

Tobe declined to comment extensively about his removal from the board when reached by phone Monday but sent brief statements via email to The State Journal.

He fired parting shots at Gov. Steve Beshear’s KRS board appointments, KRS trustees and the General Assembly.

“The governor has the right to put any qualified candidate on the board,” said Tobe, who was appointed to the KRS board by Beshear in 2008.

“So not putting me in for a (second) term is not the issue. The issue is that (state law) requires (two) out of the (three) of the governor’s appointees to be investment experts and currently (zero) are.”

That last bit of Tobe’s remarks is key.

More:

State law says two trustees appointed by the governor must have at least 10 years of investment experience, such as a portfolio manager, financial analyst or university professor who teaches economics or investment-related material.

Others appointed by Beshear include Chairwoman Jennifer Elliott, a Louisville health care lawyer with Stites & Harbison, and Vice Chairman Thomas Elliott, senior vice president of Old National Bank in Louisville.

Kerri Richardson, spokeswoman for Beshear’s office, said in a statement, “We are confident that Mr. Tobe’s replacement, as well as the other board members, fully meet the qualifications set in statute.”

Neither of the two Elliotts are investment experts. Tommy merely works at a bank and Jennifer’s a health care attorney. Would either of them swear under oath that they are investment experts with at least 10 years of investment experience? And Bauer’s experience and connections raise far too many concerns.

Another huge excerpt:

Tobe and KRS have been at odds recently over Tobe’s independent representation as the U.S. Securities and Exchange Commission looks into KRS’ payment of placement agent fees in past investments.

The investigation hasn’t moved past the fact-finding phase, but Tobe requested outside legal counsel, Edward Siedle of West Palm Beach, Fla.

KRS, which oversees pension plans for more than 340,000 active and retired state and municipal employees, set a $25,000 cap on Siedle’s pay but has received bills totaling $42,350 from his office.

Last month, Siedle, who has investigated a number of “pay-to-play” scenarios involving placement agents, released a 32-page report highly critical of internal and state audits performed on KRS after millions paid to placement agents involved in KRS investments came to light.

Siedle’s report said Tobe filed a whistleblower complaint with the SEC in September 2010 after learning of placement agents’ involvement in KRS investments. That’s around the time the SEC first requested documents from the retirement systems.

The state audit revealed that placement agents, financial middlemen hired by investment funds seeking investors, were set to receive $11.6 million in fees related to alternative investments made between 2004 and 2009.

One in particular, Glen Sergeon of New York, had a prior working relationship with Adam Tosh, KRS’s chief investment officer at the time, in Pennsylvania, and firms associated with Sergeon were scheduled to collect nearly $6 million in fees from KRS investments.

KRS honchos are still working to cover all of that up. Beshear-Conway-Luallen have been complicit, as you’ve read for the past year.

A large part of the story centers on whether or not KRS will pay all of Tobe’s legal fees for the SEC-connected attorney who issued a scathing report. KRS is disputing a $17,350 beyond the $25,000 it initially authorized. Which is silly when you consider that KRS has paid more than $121,000 to attorneys of former trustees and employees related to the SEC investigation.

The most damning part of the story is addressed after the jump. Consider it the cherry on top…

Here’s the cherry on top:

William Thielen, interim executive director at KRS, said the board allowed Tobe to seek independent counsel for matters pertaining to the SEC’s inquiry. The SEC hasn’t notified KRS that it wants to speak with Tobe, he said.

“They still have not indicated that they want to talk to Chris, so you’re talking about 40 plus thousand dollars when there is no indication yet that the SEC even wants to talk with him,” Thielen said.

Unfortunately for Thielen, the Securities and Exchange Commission has spoken with Tobe. On a number of occasions. So has the Federal Bureau of Investigation. And countless others have also been interviewed and questioned. Though Tobe won’t admit it publicly, there’s plenty of evidence that the SEC has been in heavy communication with him that anyone loosely monitoring the story can pinpoint. The timeline in the State-Journal even makes that clear.

If Thielen wants to lie to the press about whether or not someone in the Lexington FBI office and someone in the New York SEC office are deeply investigating and talking to people – including Chris Tobe – he may want to prepare himself for the ramifications. That is, if anyone in Frankfort ever sacks up enough to deal with this corrupt mess.

These are honest questions we and many others have.

How is it KET can avoid state government budget cuts (we’re glad they were avoided, full disclosure) with $11 million in assets at two 501 ( c ) 3 non-profits?

Three employees are paid amounts beyond their six-figure state salaries. That’s enough to raise an eyebrow or two.

Take a look at Page 7 of this KET 990:

CLICK FOR PDF

Shae Hopkins, Donna Verhoeven and Fred Engel. With Hopkins pocketing $192,000. At KET.

It’s unlikely for Adam Edelen to be able to adequately audit the agency because he’s a former board member.

Crit Luallen never touched the agency because of her own personal ties – a friendship with Ginni Fox and being listed as a reference on Hopkins’ application. And because there’s never really been any wrongdoing there.

Hal Rogers got his outfit in Somerset wired for teevee thanks to KET. One of the many reasons he continues to throw money at it and they continue to give him the reach-around. And you know the National Telecommunications and Information Administration rarely blinked at eye at giving KET cash while Rogers had a hand in funding.

With so many personal ties to the people in charge of directing cash to KET and direct, personal connections to those in charge of making sure money is spent appropriately… don’t you think it’d be a good idea for an independent source to dig in just to make sure?

We certainly do.

If nothing’s amiss, KET will welcome deeper public scrutiny with open arms. It’ll void any mouth-breather foaming and help guarantee its future success. An in-depth examination may even open the doors to more funding with ways to better spend money. And we all know Kentucky could use a bit more education and promotion.

Remember July 7, 2011 when we wrote about Adam Tosh and Northern Trust?

Welp… Tosh is still featured in advertising promoting Northern Trust lending products and defending what they have done to public pension funds. And he was on the Northern Trust advisory committee.

Absolutely disgusting conflict of interest, of course.

We’re bringing this up again because the Executive Branch Ethics Commission recently held training sessions in which participants were informed not to do what Tosh did – appear in ads for vendors.

And because these Tosh shenanigans were known about by Crit Luallen (I have proof that she knew about them and discussed them with KRS board members) but were never included in any audit report or official discussion.

A refresher:

• KRS Gets Another Free Pass From Jack Conway [March 14, 2012]
• Reminder: Major KRS Get Out Of Jail Free Card [March 15, 2012]
• We Thought Jack Didn’t Have Time Or Money? [March 15, 2012]

About that.

OAG 09-006 (Warning: PDF Link) reversed term limit language in the state code that allows KRS trustees to run for fourth and fifth terms. Despite the Kentucky Revised Statutes limiting KRS terms to three.

Here’s a taste:

In its 2008 extraordinary session, the Kentucky General Assembly enacted House Bill 1, “An Act relating to retirement and declaring an emergency,” which became effective on June 27, 2008. Section 21 of that bill amended KRS 61.645(3) so as to shorten the term limits for elected trustees of the Kentucky Retirement Systems from five to three consecutive terms. Robert M. Burnside, Executive Di- rector of the Kentucky Retirement Systems, has requested an opinion as to whether this amendment “applies to a Trustee elected prior to the amendment, thereby depriving him or her of the right to seek re-election which they pos- sessed at the commencement of their term.”

-SNIP-

Since we are aware of no published Kentucky authority on the construc- tion of statutes setting term limits, we compare the language of House Bill 1 with term-limit laws construed by courts in other jurisdictions. These cases fall into the three categories of expressly retroactive, ambiguous, and expressly non- retroactive.

-SNIP-

The following expressly retroactive language was voted upon in 1991 as a proposed amendment to the Charter of the City of Cincinnati, Ohio

-SNIP-

A retroactive interpretation of Section 44, under which the legislature would have been merely specifying the date after which no fourth or fifth con- secutive term could begin, is not reasonable in light of two factors. First, the leg- islature would have no reason to specify July 1, 2008, as an effective date when the bill contained an emergency clause making it effective immediately upon its signature by the Governor (which occurred on June 27, 2008). Second, there is no clear declaration of retroactive intent such as would be required by KRS 446.080(3), particularly in light of the fact that KRS 61.645(3) itself is phrased in a future determinative tense (“An elected trustee shall not serve”).

That opinion was granted in a matter of days for the former director. The seven-page opinion showed up just two days before the scheduled board meeting in August of 2009.

Isn’t that interesting? A KRS opinion that didn’t come from the board but from an individual.

This year, House Bill 300 sneaks in both placement agents and this language from Conway’s opinion.

And you wonder why we’re raising questions about corruption in Frankfort.

HAHAHA. Kentucky among the top states for spending transparency? HAHAHAHAHAHA. [Business First]

Unemployment fell in 114 of Kentucky’s 120 counties in January. Why? Because so many dang people have fallen off the jobless rolls. [H-L]

Just a reminder that Rod Blagojevich was first caught on pay to play with the Illinois pension system. Some of the same crap that’s going on in Kentucky today. [HuffPo]

The Lane Report really has become press release central. Today the publication pushed a release from Greg Fischer as “breaking” despite word being announced at least one day (if not two) prior. Small nit to pick, sure, but the shift at the publication is noticeable. [Lane Report]

Republicans in Warshington were against dark money before they loved it. That’s how it always works. [Pro Publica]

Remember Jerry Lunsford? Steve Beshear fired him as the head of the Department of Housing today. We’re not shocked that he was fired. We’re shocked that he held the position in the first place. [Deep Frankfort Thoughts]

The teabagger trend these days is to declare everything they don’t like unconstitutional. Doesn’t matter if it’s a brand of toilet paper or the Voting Rights Act. [Wonkette]

Mike Wilson is terrified of the Messicans. So terrified that he needed to push a bill requiring welfare recipients to prove their citizenship status. Despite it already being illegal on a federal level for “illegals” to receive benefits. You’ll note Wilson couldn’t prove any of his claims. [John Cheves]

In case you need a reminder about WHY the corrupt shenanigans go on in Frankfort with organizations like Kentucky Retirement Systems? It’s because even the most beloved Democrats are capable of turning a blind eye, making excuses and protecting their friends. [Page One Here & Here]

Kentucky has been chosen along with five other states to take part in a federal pilot project aimed at making it easier for eligible students to get free school meals. Leave it to some mouth-breathers in Frankfort to go crazy over this. [C-J/AKN]

Like we first mentioned on Twitter earlier today, a student at Murray State jumped from the Fine Arts building in an apparent suicide. 21-year-old Jake Derting was apparently set to graduate this year and was a 2008 graduate of Nelson County High School. [Murray State News]

This is one of the only videos we’ve seen of the tornado as it happened in Salyersville. [WYMT]

Here’s a refresher:

• Kentucky Retirement System Snafu is Back! [August 5, 2009]
• A Pension Money Manager Is In The Hot Seat [May 5, 2011]
• KRS Scandal Is Now Growing In Our Comments [May 9, 2011]
• Even More On Why I Question Crit’s KRS Audit [July 1, 2011]
• KRS Breaking Disclosure Law On External Audits? [November 7, 2011]

And how they claim they legally don’t have to despite, you know, clearly being required to do so?

They’re using the Get Out Of Jail Free card Crit Luallen gave them in 2009. Here it is for safe keeping:

CLICK TO ENLARGE

Here’s what I wrote in July about the letter:

Catch that? “The OPA report thoroughly documents the circumstances of the Holly Hill purchase transaction…”

That entire line of text was what I’d call horseshiz.

Robert Kellerman, counsel for the KRS at the time, appeared at a May 21, 2009 board of trustees meeting to provide a complete legal review of the organization’s options in the Holly Hill snafu. Turns out, though, Mr. Kellerman neglected to mention the Finance Cabinet audit. And he conveniently forgot to mention an August 4, 2006 memo he wrote recommending the KRS notify the seller of the property that they wanted to rescind the entire land deal. All during a board meeting to discuss possible legal action (for alleged fraud) against the seller.

That memo (I’ve got it if anyone wants to see it) wasn’t made available until much, much later. So it seems to me the OPA report didn’t thoroughly document the circumstances of the Holly Hill deal. At all. And it would seem to us that Crit knew better – for some odd reason – not to do more than scratch the surface in her questioning.

KRS knew the land deal was a hot mess in 2006 and did nothing about it. Other than spin 24/7 to defend it, that is. So what was the reason behind it? Was it for the money? Was it to make Chief Investment Officer John Krimmel and Chief Operating Officer Don Mullis, who were responsible for the land deal, look like fools so they could be forced out of KRS so placement agents could get back to slinging cash around?

All I know is Crit’s whitewash of a letter and the legal counsel conveniently forgetting to mention his own memo – along with the most recent audit – raise more questions than we have time to consider. Maybe neither were purposefully turning a blind eye but the stench is strong enough to make us squinty-eyed and deeply suspicious.

Crit may have been a great Auditor of Public Accounts. But she most certainly bungled the KRS mess. It remains to this day the only issue she ever reached out to me with anxiety to discuss.

The myriad KRS scandals aren’t going away any time soon. So this will likely remain a hot topic for a while.