APOC denies expedited review of disclosure complaint against Johnson

The Alaska Public Offices Commission on Thursday declined to fast-track a financial disclosure complaint against candidate Zachary Johnson, the second such denial of the afternoon. Joel Borgquist brought both requests, against Johnson and against candidate Bernadette Wilson, and the commission turned down both.

Commissioner Eric Feige said the request had "failed to meet the applicable standard for expedited consideration." Staff owes a report by Sept. 21, Johnson has until Sept. 25 to answer and Borgquist until Sept. 28 to reply. A merits hearing is to be set by Oct. 8.

The complaint alleges Johnson understated rental and business income and did not fully disclose several limited liability companies and trusts.

Johnson's attorney, Scott Kendall, told the commission an affidavit filed the night before the hearing had answered all of it. "Every business interest Mr. Johnson has has been disclosed," he said, along with every source of income from last year.

Kendall said Wild Air Farm, an Indiana property associated with Johnson's grandmother's estate, generates no income for Johnson and is not owned by him. Johnson manages it without compensation, Kendall said.

A separate lease involving Coyote Lake LLC, which Johnson does own, did not take effect until Jan. 1, outside the disclosure's 2025 reporting period, according to Kendall. He said no rent had been paid. Kendall also said Johnson disclosed both an annual distribution from the Weist Trust and his 25% beneficial interest, while marking its management "N/A" because he does not direct the trust's investments.

Kendall rejected Borgquist's comparison to the disclosure case involving former Attorney General Treg Taylor. APOC recommended against certifying Taylor before Lt. Gov. Nancy Dahlstrom reversed course and certified him.

"I'm not even sure that's apples and oranges," Kendall said. "I think that's apples and king salmon."

Borgquist, representing himself, argued voters need the information before the general election. "These disclosures allow voters to evaluate a candidate's financial interests before casting their ballots," he said. He asked the commission to consider how a non-blind trust can be affected by what an officeholder does, and argued that an LLC's disclosure obligations turn on management involvement rather than ownership share alone.

Commissioner Dan LaSota asked which allegations were still live after the affidavit. Borgquist said the trust and LLC items remained, and that whether particular documents were accurate was for the commission to decide.

To win expedited review, Borgquist had to present evidence giving reasonable cause to believe a violation occurred and show that, if not immediately restrained, it could either materially affect the election or cause irreparable harm that ordinary penalties could not adequately remedy. The commission found that burden unmet.

Thursday's ruling did not determine whether Johnson violated disclosure law. The complaint now proceeds through a staff investigation.