Fired Insurance Department Executive Assistant Claims Holland Uses Office, Staff To Run Campaign, Altered Records To Cover It Up

The former executive administrative assistant to Insurance Commissioner Kim Holland has filed a $175,000 Tort Claims Act complaint alleging, among other things, that Holland has used the Insurance Department offices, and employees she hired, to run her election campaign and that records have been altered to cover it up.

Holland said, "These claims are totally false."

Karen Russell filed the claim on October 10th with the Office of Risk Management in the Department of Central Services.

She writes that she was fired in November 2005 by Craig Knutson, Holland's chief of staff.

Russell worked in the commissioner's office for four years and was fired, she wrote, because "someone" she believes to be Knutson, went through her purse and found a note she had written about Holland not paying for university of Oklahoma football tickets.

Russell claims that from the day Holland became commissioner, "the ethical climate at the OID began to deteriorate." Russell alleges there has been a "misuse of federal and state funds."

Russell writes that shortly after Holland became commissioner, a number of employees were called to a conference and introduced to two consultants: "Amazingly, the two consultants, Diana Hartley and Susan Hardy-Brooks, turned out to be personal friends and associates of Commissioner Holland and Craig Knutson. Even more shocking, Diana was hired as 'Communications Director,' a position that did not previously exist." Russell contends in her filing that Holland had no authority to create a new division.

"It soon became clear," Russell alleges, "that the new 'Communications Division' was actually a division whose primary function was to operate and manage the on-going political campaign of commissioner Holland and to get her re-elected to office. In other words, the taxpayers of Oklahoma have been paying Chilton Marshall and others in the 'Communications Division' to run Commissioner Holland's campaign out of the OID, at taxpayer expense."

Russell claims that Holland met often with Hartley, Mike Carrier (Holland's "official campaign manager") and Chebon Marshall ("Chilton Marshall's brother and Mike Carrier's business partner") in his office. She claims Chilton Marshall "was also frequently conducting campaign business during work hours." She alleges Chilton Marshall "is the veritable definition of a 'ghost employee' as she only worked on OID business (as compared to Commissioner Holland's campaign) about ten (10) hours per month."

Russell also alleges that Marshall's "time records have been altered or disguised to make it appear that they were working on state matters, but they were not."

She wrote that her "troubles with Craig Knutson and Commissioner Holland came to a head in October 2005. Heisman Trophy winner Steve Owens was in the OID office meeting with Commissioner Holland. Commissioner Holland asked Mr. Owens for tickets to the OU-Texas game, which were later hand-delivered to the OID office. I was aware that Commissioner Holland did not pay for the tickets. I made a note to myself and placed it in my purse, as this was another area where Mr. (Carroll) Fisher had also run into trouble." Russell said she wrote the note because she was "becoming concerned about my own liability." She wrote that after Holland and Knutson became aware she knew about the tickets, Holland paid for them. Holland said she would never accept free tickets.

In her claim, Russell alleges she was wrongfully terminated in retaliation because she was documenting "unethical and illegal conduct," that her character was defamed by being fired, that a breach of contract occurred, that a breach of good faith and fair dealing occurred, that Knutson and others trespassed by searching her purse, that Holland and Knutson engaged in a conspiracy to wrongfully terminate her employment, that there was the intentional infliction of emotional distress and that there was intentional interference in Russell's attempt to find a new job because "the OID provided false job reference information for me...." Russell seeks $175,000 in compensation.

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