Arkansas lawmakers are reviewing the legislative testimony of former Treasurer Martha Shoffner for possible perjury following her indictment on 14 federal charges of extortion and bribery.
Sen. Bryan King, R-Green Forest, last week asked the Legislative Audit Division to provide a transcript of several hours of Shoffner’s testimony before the Legislative Joint Auditing Committee in September and December 2012.
Shoffner said she did not know why one bond broker began receiving a larger share of the state’s investment transactions. The transcripts total more than 100 pages.
Autumn Sanson, the state’s chief investment officer, asked for protection under the Arkansas whistle-blower law for her testimony at the Sept. 17 committee hearing. Sanson said she warned Shoffner that the bonds were being sold too early.
Shoffner was indicted by a federal jury last week after a judge rejected her attempt to plead guilty while denying she demanded six separate payoffs totaling $36,000. Shoffner said she accepted the money delivered in pie boxes, but contended she did not divert business to the broker in exchange.
The committee asked prosecutors and law enforcement agencies in December to look into Shoffner’s connection with St. Bernard Financial Services of Russellville, Ark. A probe into 30 bond transactions by auditors determined that more than $430,000 of earnings were missed because the bonds were sold before maturity.
Gov. Mike Beebe has appointed former legislative auditor Charles Robinson to serve as state treasurer for the 15 months remaining in Shoffner’s term.
The state treasurer oversees Arkansas’s $3 billion state investment portfolio, which consists mostly of federal securities.
