Money and Space
Investigation Into UM Space Center Will Involve Burns and Rehberg
By Dylan Tucker, 3-16-06
The investigation into a former University of Montana vice president’s involvement with a non-profit organization that received $3 million in NASA grants is on track to finish by early June, Montana's legislative auditor said Thursday. The investigation is in the preliminary stages and will require combing the financial records for not only the university and the INSA, but could also delve into the employment records of two of Montana’s biggest politicians: Sen. Conrad Burns and Rep. Denny Rehberg.
Monday’s unexpected resignation the Board of Regents Chairman John Mercer won't affect the progress of the investigation, said Scott Seacat, the state's legislative auditor. Seacat said Commissioner of Higher Education Shelia Sterns will keep the investigation going. “The commissioner isn’t going to let this leave her sights,” Seacat said.
Mercer resigned on Monday, citing a strained relationships with the governor, only a week after launching an investigation into the numerous ties between the University of Montana, former vice president of research and development Lloyd Chesnut and the Inland Northwest Space Alliance. The INSA is a nonprofit organization that began as a university project called the Northern Rockies Center for Space Privatization. The center came under scrutiny when it was discovered recently that the Montana Board of Regents didn’t approve the center. Mercer requested that Seacat include the INSA and Chesnut in an investigation into the university's rights to new technology developed through partnerships between research firms and university faculty.
Chesnut, who served briefly as the INSA president after leaving UM, was instrumental in the center’s development, and is also under investigation at the University of North Texas, where he worked after leaving Montana. While he was in Texas, Chesnut was also paid $15,000 by the INSA. Chesnut’s wife received $104,100 as business manager for the INSA in 2003, when she worked for the Montana non-profit from her home in Texas.
According to INSA and University records, there are at least three other UM employees who were also employed by the INSA, including grant researcher Heather Almquist. Almquist was paid $65,000 by the INSA in 2004. She was listed as an associate on the INSA’s web site until recently. She no longer appears on the web site. Nor do a number of other former associates, whose names were removed by the INSA only days after the investigation began.
In addition, INSA has significant connections to Sen. Conrad Burns and Rep. Denny Rehberg. Both Rehberg and Burns helped bring millions of dollars in federal aid to the INSA.
In 2004, the INSA listed Conrad Burns’ daughter, Keely Burns, as a member of its advisory board. Burns' then campaign chairman, Mark Baker, was also listed on the advisory board that same year. The wife of Rehberg’s chief of staff Erik Iverson was also listed as an associate on the INSA’s web site as an associate until February, when her name no longer appeared.
Amy Jo Fisher, the INSA’s government relations and outreach coordinator, worked in Burn’s office for more than 10 years, both in Montana and Washington, D.C.
Leo Giacometto, former chief of staff for Conrad Burns, is a registered lobbyist for the INSA. Giacometto donated thousands of dollars to Burn’s campaign fund this election cycle, as well as making smaller donations to the Rehberg campaign.
The president of the INSA, George Bailey, donated thousands of dollars to the Burns campaign, as well as the Rehberg campaign. Bailey, who also serves on the Board of Directors of the US-Asia Network, the non-profit organization Burns started with Giocometto, has denied any wrongdoing, and said that he supports all of Montana’s representatives in Washington.
University President George Dennison has steadfastly maintained that the university would be cleared of any wrongdoing. Members of Burns' and Rehberg's staff have also denied any impropriety.
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