The former director of the embattled workers' compensation agency is back in the limelight today.

Prosecutors at 9:30 a.m. today will request that the North Dakota Supreme Court reinstate two felony charges against Sandy Blunt, former Workforce Safety and Insurance director.

Two charges of misapplication of entrusted funds were dismissed by South Central District Judge Robert Wefald in August; the expenditures, related to the purchase of employee incentives and gifts, refreshments for meetings and questionable salary payments or adjustments, exceeded $18,000.

The charges were dismissed after Wefald reviewed briefs submitted by both sides following the preliminary hearing, which is intended to determine whether there is probable cause to go to trial.

Wefald said the prosecution failed to show that Blunt benefited from the expenditures; he also wrote in his brief that "any funds he gave away were for the benefit of state employees and for the benefit of Workforce Safety and Insurance."

Assistant Burleigh County state's attorneys Cynthia Feland and Lloyd Suhr contend the trial court made findings not supported by evidence presented in the hearing; their brief also says Wefald should not have required the prosecution prove that Blunt personally benefited from the expenditures.

"By adding this additional element of 'self dealing' without any legal authority requiring its inclusion, the trial court acted in an arbitrary manner and accordingly abused its discretion,"prosecutors wrote in the brief.

Michael Hoffman, defense attorney for Blunt, wrote in his brief that the district court's findings should be upheld, as Blunt was doing something that he did not know was unauthorized.

In fact, a part of the brief refers to a discussion between Blunt and the Office of Management and Budget, in which the OMB representative said WSIhas the ability to "purchase meals, etc. with detailed receipts and justification … . The policy does not state what is allowed and what is not allowed."

The OMB response goes on to say agencies are expected to use restraint and common sense in authorizing expenditures.

In relation to the salary payments, Hoffman said the payments were not bonuses but retroactive payments in accordance with new salary adjustments or promotions.

Blunt was terminated as executive director in early December; although the charges were dismissed, five employees filed whistleblower protection requests against him and the agency for reporting perceived violations. At the urging of the governor, Blunt was terminated after a whistleblower was put on leave and another fired.

(Reach reporter Crystal R. Reid at 250-8261 or at crystal.reid@bismarcktribune .com.)