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Watchdog Says Legal Aid Head Misled Congress

By LARRY MARGASAK, Associated Press Writer
June 19, 2007

WASHINGTON - The president of the government's legal aid program misled Congress when she denied that her first-class airfare to a conference in Ireland saddled the program with excessive costs, an internal report has concluded.

The inspector general for the Legal Services Corp., Kirt West, said he regarded the misleading statements seriously enough that he began discussions with the Justice Department about a criminal investigation.

West said he dropped the idea because he could not prove the organization's president, Helaine Barnett, knew at the time that her statements were inaccurate even though her husband and her top assistant were involved in upgrading her tickets.

Barnett said in a statement she promptly corrected the record "when all facts were known to me," and personally paid the $1,047 cost beyond the government-approved fare "even though I had never authorized the higher cost ticket."

Frank Strickland, an Atlanta attorney who is chairman of the corporation's board, said the report concluded "there was no evidence of intentional misstatement of facts." He called Barnett's original statements "an innocent mistake by those involved" and said he retained confidence in her.

West, the internal watchdog for the legal assistance program for the poor, concluded that two written statements Barnett made to Congress last year "contained statements and representations that were materially false or misleading and omitted material facts."

He took exception to Barnett's insistence that her coach ticket was upgraded to first class because of her large number of frequent flier miles, and to her assertion that the anti-poverty program paid less than the government rate for coach fare.

West said Barnett's reservations went through a series of cancellations, changes and re-bookings to obtain the upgrade for the June 2005 Ireland trip.

"This appears to have been done specifically for the purpose of getting an immediate upgrade to first class," West said.

Legal Services Corp. is a congressionally financed program that funds local legal service organizations that provide free lawyers for the poor. West provided his report to Congress, and The Associated Press obtained it from lawmakers.

AP reported last year that top officials at the program, including Barnett, used limousine services, enjoyed $14 "Death By Chocolate" desserts and conducted board meetings in an upscale Washington hotel instead of the corporation's headquarters board room. At the same time, poor people were being turned away for lack of resources.

Amid congressional criticism, the corporation changed its policies to curtail top officials' spending. Among the excesses cited in the AP stories were Barnett's cab rides during the same Ireland trip in June 2005.

The inspector general's report determined that Barnett's husband, Victor Barnett, intervened and directed Barnett's executive assistant, Karen Dozier, to upgrade Barnett's ticket to first class for her flight to Ireland. Victor Barnett does not work for Legal Services Corp.

The report included the transcript of Victor Barnett's voice message to Dozier asking her to arrange the upgrade "so she can be comfortable and get some sleep that night."

Sen. Charles Grassley, R-Iowa, said, "It's hard to see how it serves those who are down on their luck, and in need of legal aid, for the president of the Legal Services Corp. to take a charmed trip to Ireland, traveling first-class at taxpayer expense.

"The report also found that the corporation president has made false or misleading statements to Congress," Grassley said. "The record needs to be corrected immediately."

Rep. Linda Sanchez, D-Calif., who now heads the subcommittee with jurisdiction over Legal Services Corp., said it was unacceptable to give false testimony to Congress. "I am hopeful that Ms. Barnett will provide a clear explanation to Congress about the misstatements in her testimony," she said.

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