Montana DOJ opens criminal investigation into Senator Ellsworth's $170K contract deal

The Montana Department of Justice is opening a criminal investigation into Sen. Jason Ellsworth, R-Hamilton, after he attempted to use state money to contract a longtime friend, the department announced Wednesday.

This investigation was prompted by a referral from the Legislative Audit Division to Attorney General Austin Knudsen’s office made last Friday. The DOJ on Wednesday referenced a statute that says when the legislative auditor refers a matter to the DOJ, the agency "shall" investigate.

Days before the new year, Ellsworth attempted to use $170,100 in leftover judicial oversight committee funds to contract a former business associate and long-time friend, skipping the public bidding process required by state rules. That contract was signed off on and an invoice was sent to the Legislature. But following reporting by the Montana State News Bureau, the deal was canceled before any money could change hands.

GOP Senate probing $170K state contract legislator quietly awarded to business associate

Before the contract was finalized, it was bifurcated into two invoices for roughly $80,000 each, a move that would have kept the matter entirely out of the state procurement process. After legislative staff rejected that proposal, Ellsworth returned with a single contract for $170,100, which state procurement staff signed off on.

The Legislative Audit Division later determined that the attempt to split the contract in two was an abuse of Ellsworth’s government position and that he had wasted state resources in seeking the deal.

Emails: Legislative staff blocked senator's initial request for controversial contract

“Good … that’s the process,” Ellsworth said Wednesday when told about the investigation.

“I’m confident that the attorney general’s investigation will clear me,” he added.

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The news of the DOJ's investigation comes after the Montana Senate unanimously convened an ethics committee to look into the improper business deal, had a handful of meetings, but later disbanded.

Nine Republicans joined all Democrats in the Senate in voting to temporarily suspend the ethics committee and refer the matter to Knudsen, and since then, the other Republican senators have repeatedly expressed a desire to reconvene the committee.

Montana Senate sends Ellsworth's contract controversy to ethics committee

While the ethics committee was still at work earlier this year, it floated a possible violation of a criminal statute that governs misconduct by a public servant, and the committee members also invoked the possible violation of a statute that pertains to ethical requirements for legislators.

There has been concern among the Republican senators who want to reconvene the committee that the non-criminal violations won’t be addressed if the matter is solely in Knudsen’s hands.

In a letter from Knudsen dated Wednesday, he wrote that “the Department of Justice lacks jurisdiction to investigate or enforce an ethics complaint against a legislator,” adding that it is up to the Commissioner of Political Practices to investigate alleged violations of the Montana Code of Ethics and for the Legislature to enforce the Code of Ethics against legislators.

'Uncharted territory’: AG Knudsen says he may lack authority to investigate Ellsworth case

“In short, the Montana Constitution confers exclusive authority to the Legislature to enforce ethical proceedings against legislators,” Knudsen wrote.

Senate Minority Leader Pat Flowers, D-Belgrade, said that reconvening the ethics committee is “a possibility.” Ellsworth, who is one of the nine Republicans aligned with Democrats, said he would rather see Knudsen’s office complete its work before the ethics committee starts its work again.

Commissioner of Political Practices Chris Gallus said Wednesday afternoon that to investigate the matter, his office has to first receive a complaint, which has yet to happen.

The ethics committee does not have any enforcement power, but can make a recommendation on punishment to the full Senate. That punishment can range from no action to Ellsworth’s expulsion from his seat.

Gianforte office controls an unrestricted interest fund worth $86 million, and counting