Report Says Bettencourt Mileage Fraud Claims 'Unfounded'

A report issued Oct. 24 by N.H. House of Representatives legal counsel cleared Majority Leader D.J. Bettencourt (R-Salem) of claims he falsified legislative mileage reimbursement forms.

The report, which was compiled by House legal counsel Edward C. Mosca, found the claim Bettencourt was collecting legislative mileage for round trips to Salem while allegedly living in Pembroke to be "completely unfounded."

The original fraud claims were made publicly by Diana Lacey, president of the State Employees' Association and published in the July 17 New Hampshire Sunday News, the Sunday edition of the Union Leader.

Lacey said Wednesday she declined to be interviewed for the investigation because Mosca had a "conflict of interest" with the case in her opinion.

In the report, Lacey forwarded e-mail correspondence she had with a Union Leader reporter on the matter to N.H. Attorney General Michael Delaney for his consideration.

In Mosca's report, Lacey tells the reporter "[i]t was brought to my attention by at least half a dozen people that DJ Bettencourt was lying on his official legislative mileage reimbursement forms," that these people had told her he was actually staying with his girlfriend "on a full time basis in Pembroke" but was still claiming "on paper" to be living with his parents in Salem.

Lacey went on to say she was told "it was 'well-known' in Concord's political circles that Mr. Bettencourt was actually staying in Pembroke," legislators had visited Bettencourt in Pembroke and people calling his parents' home had been told "he was in Pembroke."

In the New Hampshire Sunday News story, Lacey said there was "no way" she could prove Bettencourt was living in Pembroke but wanted the Attorney General's office to investigate.

Delaney forwarded Lacey's request to House Speaker William O'Brien (R-Mont Vernon) because in his opinion "this is a personnel matter, in the first instance," at which point Mosca was instructed to investigate.

Mosca wrote he requested to meet with Lacey to discuss the claims and made several attempts to reach her with no response.

Mosca attempted to contact another state representative he believed to be tied to the case and the Union Leader reporter. Mosca wrote these attempts were either unsuccessful or did not expand on Lacey's comments.

Mosca reviewed the mileage forms, which were included in the report after a Right-to-Know request by the SEA made them public. Bettencourt received $2,852.85 in reimbursements for the period from Dec. 16, 2010 to June 29, 2011.

"None of the days for which he was paid legislative mileage would lead one to question whether the mileage reimbursement was legitimate," Mosca wrote.

Mosca noted Lacey's refusal to discuss "hearsay statements" led him to conclude the claims of fraud were unfounded and asked no further action be taken.

"Ms. Lacey wants a star-chamber-type-proceeding where her unfounded hearsay allegations are assumed to be true and Representative Bettencourt is required to prove that they are not, without even knowing who his alleged accusers are," Mosca wrote. "This is a gross violation of even the most minimalist views of due process and fairness."

Lacey said the report was "about what I expected would come from it" when she learned Mosca would be conducting the investigation. She said Mosca and Bettencourt were working together on the mileage issue before Delaney requested O'Brien handle the matter at the House level.

In the July New Hampshire Sunday News story, Mosca wrote in a letter that "Rep. Bettencourt has never knowingly signed in for legislative mileage unless and until he has completed a round-trip between Salem and Concord in a vehicle which he has driven."

The letter from Delaney to O'Brien was dated Aug. 3.

"I would be happy to provide sworn testimony in an actual legal setting," Lacey said. "I'm not willing to meet with (Mosca) and be involved in a private meeting."

Lacey noted interviews with Bettencourt, his parents and his girlfriend were not part of the report.

"If this were an investigation where Mr. Bettencourt were under oath to answer these questions and I could be compelled to do the same thing, I think we may see a much different outcome," Lacey said.

She maintained she has spoken with six different people who have knowledge of the subject and said she would "not be part of a group of people who wouldn't talk about it" in public.

"I have a sworn oath to the employees of this state," she said.

Bettencourt has denied Lacey's claims, telling the New Hampshire Sunday News it was "an attempt by the SEA to try to dig up dirt and inappropriately dig into the personal lives of members who take positions contrary to theirs."

Bettencourt said in an e-mail to Mosca provided with the report that between December 2010 and September 2011 he has been reimbursed for two months worth of travel although he said he's been "at the State House nearly every business day since my election as majority leader in December."

In that same e-mail Bettencourt made himself available to answer "any questions or concerns that might arise" and provide any documentation as Mosca prepared the report.

The report was forwarded to Delaney by O'Brien on Monday. In a letter to Delaney, O'Brien said Lacey had made "wild allegations of ethical or criminal wrongdoing against legislators who are her political opponents."

O'Brien said Lacey should apologize to Bettencourt and "should consider resigning to allow the SEA to go forward with more responsible leadership."

Lacey denied having any "political opponents" as O'Brien described.