Aug 08, 2008 - 04:06:47 CDT
North Dakota's former workers compensation director is to be arraigned later this month on charges that he misspent more than $18,000 in agency funds.Sandy Blunt is accused of two felonies. He is charged with distributing unauthorized bonuses to top executives at Workforce Safety and Insurance, and using agency money to buy meals, gifts and trinkets for employees and state legislators.
Blunt's arraignment is scheduled for 4:30 p.m. Aug. 25 before South Central District Judge Bruce Romanick. Blunt's attorney, Michael Hoffman, has said Blunt will plead not guilty.
Another judge, Robert Wefald, dismissed the charges last year, but the North Dakota Supreme Court reinstated them last June.
Blunt was forced out of his job last December by WSI's board of directors after Gov. John Hoeven brought pressure on the board to get rid of him. A consultant's report afterward was critical of Blunt's management style.
- Associated Press

Sandman wrote on Aug 14, 2008 6:11 PM:
VoR wrote on Aug 14, 2008 3:27 PM:
After all the cloak of invisibility allowed by posting anonymously will protect you from any whistleblowers who read your opinions. "
VoR wrote on Aug 14, 2008 11:30 AM:
VoR wrote on Aug 14, 2008 11:09 AM:
Mike R wrote on Aug 14, 2008 9:53 AM:
Online Editor wrote on Aug 14, 2008 8:59 AM:
Mike R wrote on Aug 14, 2008 8:07 AM:
Mike R wrote on Aug 13, 2008 9:51 PM:
Living It wrote on Aug 13, 2008 7:22 PM:
to Victor wrote on Aug 13, 2008 12:58 PM:
Victor wrote on Aug 13, 2008 12:21 PM:
Its amazing that Pro-WSI think that northdecoder and iwofndadvocates are totally making things up. WOnder if they think the same of the Cates and Port blog? "
to Victor wrote on Aug 13, 2008 11:56 AM:
Lost wrote on Aug 13, 2008 11:55 AM:
To ok wrote on Aug 13, 2008 11:49 AM:
Victor wrote on Aug 13, 2008 10:58 AM:
Ok wrote on Aug 13, 2008 8:46 AM:
To Living It: I was wondering when you were going to chime in. Sometimes Chad forgets but the northdecoder is not a media outlet it is filled with half truths, ridiculous claims and political propaganda. There is very little fact on that site and is just a blogger, with a power complex, and his cronies not a reliable source of information. I could try to pass off sayanythingblog as the whole truth but dont because I know that even though these bloggers offer insight to the conversation they are heavily biased and in Chads case will do and say whatever it takes to support their claims. "
Living It wrote on Aug 12, 2008 11:50 PM:
Victor wrote on Aug 12, 2008 5:15 PM:
Just have to say wrote on Aug 12, 2008 3:58 PM:
To To Victor wrote on Aug 12, 2008 1:52 PM:
1. WSI is a governmental agency. They already had strict budgetary guidelines and theoretically, should not have 'gone over' on spending of that type.
2. The club memberships and other organizations you mention is indeed valid. However, can you explain why WSI then paid another $10 k to $12 k per year for Blunt's Vistage membership? That was questioned in the audit too.
3. I'm with the other bloggers who wonder why there were other business expenses reimbursed over and above the allowance. Yes, your point about travel for work was valid too, except that WSI also had a budget for airline travel and paid those costs directly (reimbursed employee for lodging, meals (per diem), and incidentals). If these are the expenses everyone is complaining about, then I sort of agree it should not be an issue and the $18 k was intended for club memberships and other items the org would not pay for. But the Vistage membership? C'mon. "
to Victor wrote on Aug 12, 2008 1:19 PM:
I dealt with Mr. Blunt on a weekly basis and I see things differently than you. I do not think your opinions are invalid, everyone is entitled to their opinion, I just disagree with it.
What I find hilarious, actually it is pretty sad, is the lengths people have gone to hang everything they do not like about the agency around his neck. "
Victor wrote on Aug 12, 2008 9:41 AM:
I'm not sick and tired of your support but I do find it hilarous that supporters are so blinded by their image of Blunt (many who probably have never had to work with him or deal with him, if you had some of your opinions would change) that you can't see other people may have valid opinions as well as your own. I sense a pattern of Blunt and frankly don't find him very trustworthy or honest unless it benefits him personally. "
Clearing the Air wrote on Aug 12, 2008 8:22 AM:
To Victor: Just so we are clear the $18,000 Mr. Blunt is charged with is not the funds for his housing allowance. Furthermore, if you are trying to say that because he submitted receipts for legitimate business expenses as a way to paint a bad picture of him than you are barking up the wrong tree. I would be concerned if he had lost the receipts and still wanted reimbursement. An allowance is very different from business expenses. Under your logic all of his business related expenses (air travel, mileage, hotel, etc.) should come from his allowance. Not the way things work, my friend. If you are sick and tired of us defending Mr. Blunt I have a suggestion for you, argue the point and not throwing out innuendo and dropping irrelevant information thinking you are scoring cheap points, because no one is buying. "
Victor wrote on Aug 11, 2008 8:50 PM:
Things aren't unraveling for me, its just getting frustruating for the Blunt supporters to continue to find ways to support him when its becoming plain and simple that he appears not to be the honest ethical above the board man many of you believe.
It shows a pattern of just how Blunt operates and in my opinion he never was wrong about anything. "
Mike R wrote on Aug 11, 2008 8:34 PM:
Charles wrote on Aug 11, 2008 6:52 PM:
To Now thats just plain reaching wrote on Aug 11, 2008 3:51 PM:
to Plain Reaching wrote on Aug 11, 2008 3:47 PM:
Now That is Just Plain Reaching wrote on Aug 11, 2008 2:48 PM:
Victor Victor Victor wrote on Aug 11, 2008 1:29 PM:
To Victor you are about for wrote on Aug 11, 2008 1:05 PM:
Victor you are about for wrote on Aug 11, 2008 12:47 PM:
Victor wrote on Aug 11, 2008 12:14 PM:
And the $18,000 was not for a housing allowance, it was a business expense allowance. If Blunt was submitting business expenses, then just what was he using the $18,000 for. And remember this $18,000 was moved into salary only after the auditors questioned whether is was being used properly.
And I have to disagree, Blunts is not in my opinion an honest honorable man. "
To Cant Wait for ALL the Apples wrote on Aug 11, 2008 11:17 AM:
I think the point being made about the $18 k allowance is that Blunt allegedly submitted expenses and was reimbursed for items in addition to receiving the allowance. The auditors questioned why he should receive an allowance AND reimbursements too. Sounds like a valid question. But you're right, not relevant to the case unless Feland brings in other evidence to prove there was double-dipping. Don't think that's going to happen. "
Cant Wait for ALL the Apples wrote on Aug 11, 2008 1:31 AM:
As for the $18k, you have NO IDEA what you are talking about and it has no bearing on this case. It was a housing allowance/business and was officially folded into Blunts full salary by the Board. Nothing but class envy and jealousy by auditors.
As a side note, it is the prosecutions duty to prove Blunt is guilty. So for the high court to state neither Blunt nor the district court has drawn our attention to any constitutional, statutory, or other legal authority allowing an agency head to award retroactive pay increases it was a serious and inappropriate shifting of burden. It subsequently became Blunt and the Lower Courts obligation to prove innocence as apposed to the prosecutions duty to prove guilt. This was yet one more sordid detail and miscarriage of justice in this whole incredible mess. "
To Victor and Others wrote on Aug 10, 2008 9:06 PM:
It was clear to me that the "bonuses" were in fact adjustment to salaries, with a "catch-up" payment as the people deserved. See, you haven't read and probably didn't witness what was going on. If someone is overdue for a salary review due to management changes, those reviews, when completed, should be retroactive. How did you expect they would get the money? Gift cards are obviously not the answer!! So yes, they received a check for retroactive pay. And don't lie, you would expect the same and probably more for pain and suffering for the months they waited to get the review. And the same thing is probably going on since they have had a huge management turnover since Blunt resigned.
As for the gift cards and employee morale boosters....you would expect the same, it was for a good purpose, people deserved it, and those that continue good service should demand it. For the crap they put up with by people on this blog and others, they should get more than bottled water, gift cards and trinkets.
Blunt is an honest good man. For Victor to think managers should know every detail of expenditures, that is called Management by Hitler!! Should Blunt have known the number of toilet paper that was to be purchased? "
to FACTs all wrote on Aug 10, 2008 6:28 PM:
As for your expense account statement, first off that isn't even in the trial and has no bearing on the case. Expense accounts are common place for executives, but for the most cases not in state government, but if you want examples of where else in state government it happens you may want to look into the Dept. of Commerce and the Bank of North Dakota.
As much as you don't want to believe it, the activies at WSI are not as out of line with the rest of state government as people think. Nor are illegal just because it doesn't pass their personal smell test. "
Victor wrote on Aug 10, 2008 4:11 PM:
Connolly didn't check facts about the possible liability issue the Auditor indicated in the letter to the SAO and the Board but sure raked the auditor over the coals and did not seek out the truth, however you were critical of them for not seeking the truth about Blunt as you put it but think its ok for Connolly not to seek the truth about what the auditor said, sounds like a double standard to me.
I have seen the long pattern of purchases and indicate that Blunt knew nothing of the purchases. I beg to differ. It's my understanding that Blunt did see/approve some (if not all) of the purchases. Supporters focus on the cake, there are more purchases than the cake, I say throw the cake cost out and focus on the others. I am convinced that Blunt knew of and approved of the purchases. Any good manager would (or should) have asked what these purchases were for when preparing/approving annual budgets, if he didn't then he failed in his fiducary responsibility by not fully understanding the costs being spent by the agency, this in my opinion is another management failure of Blunt. Another thing that leads me to think Blunt is unethical and dishonest is him not using his annual $18,000 expenditure properly, instead he submitted receipts for things that should have been part of the $18,000 (this was pointed out in the 2006 audit and the board changed the reimbursement by adding this to his salary). This I believe shows a pattern and is a factor that leads me to my conclusions.
You can call it a salary, I see it as a bonus which is illegal for the dollar amount under ND law.
If I am suppose to keep my opinions to myself, does the same go for you? "
FACTs all wrote on Aug 10, 2008 4:09 PM:
Do you like apples? How do you like them apples?
http://www.ndcourts.com/_court/opinions/20070247.htm
[31] We agree with the State that there is probable cause establishing lump sum payments constituting improper bonuses not authorized under state law. We further note, however, that even if the lump sum payments are characterized as retroactive pay increases, neither Blunt nor the district court has drawn our attention to any constitutional, statutory, or other legal authority allowing an agency head to award retroactive pay increases. "
Come ON Victor wrote on Aug 10, 2008 3:50 PM:
Connolly interviewed the Audit Manager, as referenced in the report--Do you know whether they ever talked to Blunt? If you don't facts, why make something up? An indictment for eating a birthday cake is surely a new high for North Dakota criminal law. There clearly is a unique set of values in whoever is behind it, or they do not have enough to do, when they can charge somebody criminally for conduct that was assumed to be legal for many years. Whatever Blunt's faults, it looks like the State auditor had it in for him beyond reason, and now public assets really are going to be wasted far in excess of the cost of the cake. "
Lets use FACTS all wrote on Aug 10, 2008 2:25 PM:
PS Connolly spent a lot of time with the internal auditor. Check the report and it will show he talked with her directly. Again, I plead with you to please pull facts not fiction in your argument. "
Come On Editor This is Clean wrote on Aug 10, 2008 1:07 PM:
To the independent-minded readers, are we really criminally charging a man and his family for a cake bought for him (not by him BUT FOR HIM) for his first day? He was not even at the agency yet when the cake was approved and ordered. Next we have bottled drinking water for the WSI employees. Then we have $10 gift cards for staff and carnations and a balloon to celebrate the employees years of service at the agency. ALL PRACTICES AND PURCHASE PATTERNS ACTIVE AND LEGAL BEFORE BLUNT ARRIVED!!!! Now we lynch him for listening to the legal and financial advice given to him by these same employees? I am willing to bet that Blunt did not personally sign off on most of the purchases in question and was not even aware of when or how they were bought. If this is so, isnt the wrong person being charged? Until we have all the facts Victor/Victoria, I say we should all keep our hands and opinions to ourselves because that is all they are just opinions.
PS, If you really want to see what it looks like to buy a lot of food (and hypocrisy) do a public records request for the food and beverage purchases by the Supreme Court annually for government employees. Now that number will really blow you away. "
Victor wrote on Aug 10, 2008 12:29 PM:
Nevertheless whether it was a oral agreement or not, the dollar value exceeded the allowable limit per state law on the bonuses. Spin it how you want, that is what the audit finding says, that is what the criminal complaint says. No matter what it appears to have violated laws. Perhaps Blunt did check with Bjornson and she gave him still more bad advice, but nonetheless it was Blunt who authorized the "bonuses", so he is responsible. These are the facts, not fiction. "
Check the Official Record wrote on Aug 10, 2008 11:33 AM:
Give It A Rest Will Ya wrote on Aug 10, 2008 11:26 AM:
One, they were not bonuses they were back pay to an oral and written promise. Watch for the proof during the trial. Two, it has already been proven by deposition that Blunt neither directed nor authorized the DOT download. It was the head attorney Jodi Bjornson who gave the OK to both download and use the photos. Blunt had no idea she had done such until the case was dropped because Bjornson KNOWINGLY AND INTENTIONALLY HID her actions for almost a year. Three, the Connolly report regarding Blunt talked to only those who felt aggrieved. Connolly never spoke to Blunt or attempted to find the truth of the issue. Additionally Connolly stated it was one of the best-run systems in the US; FYI this was done under Blunts management. So if he is bad because of the points then he is also responsible for the first class system results too. "
leo wrote on Aug 10, 2008 10:33 AM:
Yes "
To To Victor wrote on Aug 10, 2008 9:45 AM:
To Lvy Leaguer wrote on Aug 10, 2008 9:33 AM:
Read the entire thread before you comment, I was asked by another to provide a list of agencies that spent like WSI, so I did. Others asked me to provide more information about it more than a list, which I cannot do as it is a 7 page document that has six columns. The Tribune website is not set up to allow for me to upload it, so I told everyone were they could get a copy. Just call Legislative Council.
To leo: Did you work for WSI? "
To Ivy League Grammar wrote on Aug 9, 2008 10:11 PM:
As for your list, I was wondering where you were going with it, and why. You seem to have a list with no more information at that time as to why you posted it. I mean if you have proof of those other government agencies doing the same, as WSI please feel free to bring it out in the open. Although at this point it seems WSI is the issue, as they seem to keep getting in the headlines. Oh and thanks, for the grammar update I will put that in my notes and refer to it later. "
leo wrote on Aug 9, 2008 9:20 PM:
When did Blunt ever prove he was a manager? The employees of WSI most certainly were not exposed to any leadership abilities by him. I do have to disagree with your broad statement about North Dakotan's work ethic though. Leadership is a rare quality. Very few people have the gift or the ability to lead others. North Dakotans will work very capably if they are convinced what they are doing is the right thing to do. We are not robots that readily accept the direction of someone who calls themselves or are appointed managers. They will not follow anyone who talks the talk but doesn't walk the walk. Do as I say and not as I do won't work here in North Dakota. Openly having double standards where executives receive special treatment and the people who do the actual work are treated as peons won't work here either. The work ethic may not be what it used to be, but people here won't be fooled into blind obedience. We have a passion for work but it's just not there to make non-leaders look good or to get them promoted. Any company can compete in the market if it has competent leadership, trains their employees well and treats them with respect. "
to Victor wrote on Aug 9, 2008 5:05 PM:
To Victor wrote on Aug 9, 2008 1:26 PM:
Victor wrote on Aug 9, 2008 12:39 PM:
It was Blunt who ruined his own career, he alone is responsible for his actions, he is the one who did the things he did, no one forced him to give illegal bonuses. No one forced him to request the photo download from DOT. Read the Connolly and Marsh reports on Blunts management style, no one but Blunt is responsible for that. He needs to take managment classes, he needs to learn that respect is earned, not merely deserved because of who he is, he needs to be open and not always do things behind closed doors, he needs to realize that laws apply to him and his actions. "
Victor wrote on Aug 9, 2008 12:35 PM:
What Blunt did was wrong, and I'm guessing he knows it (but doesn't seem to want to admit it), the public knows it, and many legislators know it as well (some were even part of the illegal spending but they won't admit it) so the saga continues.
You provided the list of agencies but no information on what the expenditures were unlike for WSI where the expenditures were outlined. "
to What wrote on Aug 9, 2008 11:39 AM:
What wrote on Aug 8, 2008 10:00 PM:
Parks & Recreation
Game & Fish
Higher Education
State Auditor
Human Services
Supreme Court
Health
Historical
Bank of North Dakota
etc., etc., etc.
And posting a list makes up believe that you know all these agencies are doing the same as WSI? Maybe you could explain your list, rather then just post it. You seem to have fallen behind on your research as to why you posted all of the names above.
As for injured workers, and being one I do not care if Blunt is convicted or not on the charges. Myself I just want to see what might come out of the whole trial mess, maybe some finger pointing at others that have treated injured workers unfairly. If you have never been injured, dont tell us how we are being treated. Because some of what some of us state about issues, we might just have tape recordings to back it up. Since I have found resorces at iwofndadvocates.com/blog/ I use the tools I can. "
To Victor Mahonri wrote on Aug 8, 2008 8:35 PM:
to Victor wrote on Aug 8, 2008 3:46 PM:
Parks & Recreation
Game & Fish
Higher Education
State Auditor
Human Services
Supreme Court
Health
Historical
Bank of North Dakota
etc., etc., etc.
Maybe you should get out from behind your computer and thinking that the newspaper is the only source of information. An entire list was presented to two legislative committees and the amounts they spent. So where is your proof? "
Victor wrote on Aug 8, 2008 2:11 PM:
Yes laws can be gray, but that doesn't mean that everyone is doing what Blunt is alleged to have done. You may have received retro active pay but was it over $1,000 as the state law allows (or whatever the limit was at the time you received yours). You make it seem like retroactive pay is illegal, no bonuses are illegal if they exceed a certain $$$ amount (but you forget to put that in your post). When laws are gray you should err on the side of caution, with Blunt it appears he did what he wanted even if he didn't know for sure if it was legal or not.
As for the injured worker selling produce I (and I suspect you do too) know full well that one is true as it was played out in the news a couple years ago, so I stand by that one, I know nothing about the IME issue you refer to.
Can't it be said that both sides twist stories/lies to benefit their story. That is why once a trial is held I will abide by the decision of the jury/judge. "
haze wrote on Aug 8, 2008 1:50 PM:
to wondering wrote on Aug 8, 2008 1:40 PM:
to Victor wrote on Aug 8, 2008 1:38 PM:
As for your farmers market story, give me a break. I love these stories, because that is all they are, stories, legend, fairytale. Anything y'all can come up with, true or false, that can support your case. Im sure you are one of the ones who had an IME doctor who smelt like whiskey, which is my personal favorite of the stories out there. "
wondering wrote on Aug 8, 2008 12:32 PM:
Victor wrote on Aug 8, 2008 11:33 AM:
I for one don't think tax dollars are being wasted on possible criminal charges and if Blunt is found innocent I won't cry about the waste of tax dollars, I will say the legal system ran its course, I won't be like the WSI and Blunt supporters who use the same lines over and over and over, that the cost is not worth the time.
It would be helpful if you can tell those of us who believe in the rule of law, what the dollar limit should be on determining whether or not an alleged crime is worth prosecuting. That way people will know the dollar amount they can misappropriate, use for their benefit, give to their friends/cronies to support their unethical ways, etc. to avoid prosecution. This will be helpful for those who are alleged to have committed crimes in the future, but the question will be whether or not the WSI and Blunt supporters will be consistent. Do you think that an injured worker alleged to have sold vegetables at a farmers market should have the dollars spent on investigating that WSI did on that person, was that not public money that was wasted? Where was your outrage on that? "
Online Editor wrote on Aug 8, 2008 10:20 AM:
to Mahonri wrote on Aug 8, 2008 10:15 AM:
The other thing I love about this is that this exact story ran in the local section of the Tribune yesterday and there wasnt a single comment. Apparently, since the Tribune has positioned themselves so heavily on this issue that if they don't get the reaction they are looking for they will run it until they do. Talk about bias in the media. "
Mahonri wrote on Aug 8, 2008 8:25 AM:
VIctor wrote on Aug 8, 2008 7:56 AM:
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