Beshear not directly responsible for Kentucky Central conflict

FRANKFORT, Ky. (AP) - Democratic gubernatorial nominee Steve
Beshear's former law firm should have withdrawn more than a decade ago as legal counsel on a mammoth corporate bankruptcy case to avoid a conflict of interest, independent attorneys wrote in a confidential report released Saturday.

The report said Beshear was at least generally aware of a potential conflict of interest and that his former firm, Stites & Harbison, violated three Kentucky Supreme Court ethics rules. But, Beshear was not directly involved in the conflict, according to the 90-page report, which was prepared 12 years ago but kept under wraps until its was sought by two major newspapers.

The report, which looked into Stites & Harbison's work in the bankruptcy of Kentucky Central Life Insurance Co., had become political fodder in the race between Beshear and incumbent Gov. Ernie Fletcher.

The Cincinnati law firm of Porter, Wright, Morris & Arthur, which compiled the report, concluded that neither Beshear nor any other Stites & Harbison attorney working on the Kentucky Central case were involved in or responsible for the conflict of interest.

"The report ... confirms what I have said all along, that I have conducted myself in an ethical manner," Beshear said Saturday afternoon.

Stites & Harbison released a statement Saturday saying the report shows there was no basis for allegations of unethical conduct on Beshear's part and that interest in the report has been driven exclusively because of his campaign for governor.
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  • by mollie Location: pikeville on Oct 9, 2007 at 07:24 PM
    Beshear thought it was only something for the ethics department when he was attorney general and Gov. Brown replaced employees, too bad Greg Stumbo wanted to make it a criminal issue and unend a Republican Governor. But then, Beshear and Brown were both Democrats.Ever wonder why there were so many Democrats and so few Republican in merit positions when Fletcher was elected? I find it hard to believe that Beshear would not remember being told to get off a case,because of a conflict of interest. Must not have been a rare occurence for him.
  • by Fred Location: Lexington on Oct 9, 2007 at 11:47 AM
    Beshear IS, however, directly responsible for global warming, turmoil in the Middle East, rising gas prices, and the fact that buttered microwave popcorn causes lung cancer. NOW who wants him as governor???? :)
  • by STEVE Location: IRVINE on Oct 7, 2007 at 06:11 PM
    HEY YOU WKYT BETTER LOOK AT THE HEARALD LEADER ONE OF YOU GUYS IS LYING. HEY BEASHEAR BACKERS I THOUGHT YOUR BOY WAS AS CLEAN AS THE WIND DRIVEN SNOW HUH?
  • by steve on Oct 6, 2007 at 10:58 PM
    Yea right!I will sell you the irvine bridge to gees.
  • by Anonymous Location: tv on Oct 6, 2007 at 08:09 PM
    If he's not responsible for any of this then he must not have much control of his law firm. If I was on a sinking ship, I would hope he wasn't the captain.
  • by Brian Goettl Location: Nicholasville on Oct 6, 2007 at 07:41 PM
    You guys will have to retract this story. The AP is clearly wrong. The report clearly calls Beshear actions unethical, and states that the unethical actions were detrimental to Kentucky Central. Get on the stick and report the facts.
  • by Dave on Oct 6, 2007 at 06:03 PM
    How can you be in something up to your eye balls and not be responsible. Sounds like the media protecting their liberal friends again. Like thats a surprise.
  • by c Location: fkt on Oct 6, 2007 at 03:36 PM
    Beshear wasn't governor when all this happened, but FLETCHER WAS GOVERNOR WHEN HE PARDON THE WRONG DOING OF OTHERS! All of this came to life because FLETCHER is upset that he might lose the election! I still think Beshear will make a better governor than Fletcher! Kentucky CANNOT ENDURE ANOTHER FOUR YEARS OF FLETCHER!There are no ETHICAL politicians ANYWHERE! ALL politicians are LIARS and cannot be trusted! This election is about picking the least of two evils! I pick Beshear!

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