Mail Tribune News - Whistleblower says audit didn't go far enough

Mail Tribune (Medford, OR — Wayback)

2000-05-31

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Whistleblower says audit didn't go far enough By Chris Bristol of the Mail Tribune An internal Jackson County audit of the Medford airport management found plenty to criticize this summer. Airport officials named in the audit apologized for their actions and promised to be more careful in their timekeeping and management practices, and the county administrator said he considered the matter closed. But former airport secretary Dawn Neff, who made the allegations that triggered the audit, says the document glossed over what she considers the most serious charge: that Airport Director Bern Case was actively involved in developing and marketing an airplane-related product sold by Turbo Way Inc., a company owned and operated by his wife, Michelle. And a state ethics investigator says that if Neff's allegations are true, Case's actions could constitute a violation of the state ethics law governing public employees. Turbo Way markets a wheelchair-friendly hydraulic ramp for loading and unloading passengers on commuter planes. Rogue Valley International-Medford Airport owns one. According to the audit, Bern Case said he might have had an airport secretary type several business letters for Turbo Way in the spring of 1997, a few months before his wife incorporated the company. Case also acknowledged that he has served as a "reference" for the company and has demonstrated the airport's own Turbo Way lift when asked. As airport director, he also helped organize airport conferences at which products were demonstrated, including Turbo Way lifts. He defended his actions on the grounds that he has been used as a reference for other airport-owned equipment. And he insisted Turbo Way is his wife's company. The auditors reported that Case told them "his only connection is that he is the husband." The audit did not reach a conclusion on whether Case's actions constituted an actual conflict of interest. They recommended that ``every effort should be made to avoid activities that could be perceived as a conflict of interest." But Neff, who says she typed the 1997 Turbo Way letters, says the ethical conflict was more than a perception. Neff's complaints were filed before she quit her job at the airport. She says she left because of stress over her deteriorating relationship with Administrative Manager Craig Baldwin, which she said had been a problem for almost a year. After she left, the county challenged her application for unemployment benefits, which were denied. Neff says Turbo Way is actually Bern Case's company and that his statements to the contrary are lies. "He was marketing" the company, she said. "I don't know what else you would call it. And he was doing it on county time, all the time." According to Neff, Bern Case developed the lift himself. In a Mail Tribune story earlier this year, Michelle Case, a former Horizon Air customer service agent, said she invented and developed the lift. "He's the one who drew up all the plans, the whole schmeer," Neff said. "He told everybody by putting it (the company) in his wife's name, there's no conflict and it would be easier for her to qualify for small-business assistance. But it's still his company." Case declined to comment on the audit or on Neff's allegations. His wife did not return a call seeking comment, and neither did a Central Point attorney who is listed as the company's corporate agent. The attorney is Dennis Richardson, who has performed free legal work for a community group called Airport Community Enthusiasts. According to the audit, Richardson's wife is also a partner in the company. Tom Franklin, manager of Newport Municipal Airport and president of the Oregon Airport Management Association, said he once looked into purchasing one of the lifts, which he called "an awesome little piece of equipment" because it quickly loads a group of passengers without singling out those in wheelchairs. He said he had no indication that Bern Case was directly involved with the company. "I've only dealt with Michelle on this thing," he said. "I didn't even know Bern was connected until I contacted the company first." Neff said Michelle Case may be soliciting business, but she has no doubt that Bern Case is actively involved in the business behind the scenes. "If he says any different, he's lying," she said. "He made marketing calls, sent out faxes from the (airport) office and dealt with the manufacturer on a frequent basis. His wife would come into the (airport) office all the time, and they would spend an hour and a half in his office talking about it. Then they would take off to Kinko's to make copies." "The rest of the staff, they know what's going on," she added. "I mean, it was pretty blatant." Alan Priest, an investigator with the Government Standards and Practices Commission, said his office had received one telephone call inquiring about Turbo Way, but no formal complaint has been filed. Priest said the situation described in the audit sounds questionable under state law. "You cannot use your official position to benefit your business or a relative's business," he said. The law doesn't forbid public employees from operating businesses, "but it has to be apart from their position." Mail Tribune reporter Dani Dodge contributed to this report. Reach reporter Chris Bristol at 776-4487, or by e-mail at: [email protected]   Mail Tribune Copyright �  The Mail Tribune 1999, Medford, Oregon USA