<http://www.washingtonpost.com/wp-dyn/content/article/2007/09/22/AR200709220
1130_pf.html>
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/22/AR2007092201
130_pf.html
 
U.S. Attorney in Minnesota Faces Probe
Prosecutor Accused by Staff of Abuse, Retaliation, Mishandling Classified
Material


By Dan Eggen
Washington Post Staff Writer
Sunday, September 23, 2007; A07


Immediately upon arriving in Minneapolis
<http://www.washingtonpost.com/ac2/related/topic/Minneapolis?tid=informline>
last year as the nation's youngest U.S. attorney, Rachel K. Paulose
<http://www.washingtonpost.com/ac2/related/topic/Rachel+Paulose?tid=informli
ne>  made little secret of her political views or her desire to focus on key
Bush administration initiatives, such as pushing for "righteous sentences"
in child pornography cases, according to current and former employees.

The effort did not go well. Paulose openly clashed with career prosecutors
in the office over issues big and small, leading to open revolt last spring
by senior managers who refused to work with her. Her connections to senior
Justice Department
<http://www.washingtonpost.com/ac2/related/topic/U.S.+Department+of+Justice?
tid=informline>  aides suddenly became a liability instead of an asset after
those aides became embroiled in the controversy over the firings of nine
other U.S. attorneys.

Now, the 34-year-old Yale University Law School graduate is the subject of
an investigation by the U.S. Office of Special Counsel
<http://www.washingtonpost.com/ac2/related/topic/U.S.+Office+of+Special+Coun
sel?tid=informline>  into allegations that she mishandled classified
information, retaliated against those who crossed her, and made racist
remarks about a support staff employee, said multiple sources in Minnesota
<http://www.washingtonpost.com/ac2/related/topic/Minnesota?tid=informline>
and Washington, who declined to be identified because the probe is still
under way.

In addition, an internal Justice Department audit completed last month said
her employees gave her very low marks, alleging that she treats subordinates
harshly and lacks the requisite experience for the job, said several sources
familiar with the audit. Her performance review was so poor that Kenneth E.
Melson, head of the department's Executive Office for U.S. Attorneys, took
the unusual step of meeting with her in Minnesota several weeks ago, two
sources said.

The Justice Department's inspector general and Office of Professional
Responsibility are also examining the Minnesota office as part of a broader
investigation into personnel issues at Justice, although that inquiry does
not specifically deal with Paulose's performance, sources said.

The case provides a key example of the unresolved challenges that will face
former federal judge Michael B. Mukasey
<http://www.washingtonpost.com/ac2/related/topic/Michael+Mukasey?tid=informl
ine>  if he is confirmed to succeed Alberto R. Gonzales
<http://www.washingtonpost.com/ac2/related/topic/Alberto+Gonzales?tid=inform
line> , who resigned as attorney general this month. Temporary appointees
fill a quarter of the U.S. attorney offices and most of the department's
senior jobs in Washington, while internal and congressional investigations
into the problems at Justice are likely to continue well into next year.

"It's just one thing after another," said one Minneapolis lawyer and former
federal prosecutor, who did not want to be identified because of regular
dealings with Paulose's office. "I think a lot of people in the office were
hoping for some oversight to change things. But right now people are just
hunkering down and hoping they can survive another year or so and salvage
their careers."

In a statement issued by her office in response to disclosure of the special
counsel investigation, Paulose said: "I am confident the truth will be
brought to light. I am focused on doing the work of the people, which is
what I have been appointed to do." A spokeswoman for Paulose declined to
comment on the Justice Department audit.

Paulose was one of more than a dozen Bush administration insiders who were
appointed to U.S. attorney posts under Gonzales. Her predecessor, veteran
prosecutor Thomas B. Heffelfinger, had been identified as a potential firing
candidate by senior Justice aides, but he resigned on his own in early 2006
and said he never knew he had been targeted.

Born in India
<http://www.washingtonpost.com/ac2/related/topic/India?tid=informline>  and
raised primarily in the Minneapolis suburb of Eagan
<http://www.washingtonpost.com/ac2/related/topic/Eagan?tid=informline> ,
Paulose was previously an aide in the deputy attorney general's office. She
became Minnesota's first Asian American U.S. attorney upon Senate
confirmation last December.

Former Gonzales aide Monica M. Goodling
<http://www.washingtonpost.com/ac2/related/topic/Monica+Goodling?tid=informl
ine>  testified at the House Judiciary Committee
<http://www.washingtonpost.com/ac2/related/topic/U.S.+House+Committee+on+the
+Judiciary?tid=informline>  in May that Paulose's conservative credentials
were one reason that she was appointed as interim U.S. attorney in early
2006 instead of another candidate. Goodling also testified that Paulose and
she had become personal friends during the hiring process.

Paulose's troubles burst into public view in April -- a month after she was
formally sworn into office -- when her first assistant U.S. attorney, John
Marti, and two other senior attorneys resigned their management positions,
saying they did not want to work for her.

Marti then filed a complaint about Paulose in June with the U.S. Office of
Special Counsel, an executive branch agency that handles whistle-blower
cases, sources said. The existence of that investigation was first reported
last week on a blog run by veteran Minnesota reporter Eric Black. Marti did
not respond to a telephone message left at his office.

The complaint alleges that Paulose regularly left classified reports related
to terrorism lying loose in her office, and ignored warnings from Marti
until he reported the problem to superiors in Washington, said sources
familiar with the probe. Investigators are also looking at whether Paulose
then threatened to retaliate against Marti.

The special counsel's office is further examining allegations that Paulose
retaliated against lawyers and support staff whom she viewed as disloyal,
vowing to make one employee so miserable she would quit. In addition, the
office is investigating an allegation that Paulose referred to an African
American support employee as "fat," "black" and "lazy" in a conversation
with another employee, the sources said.

James P. Mitchell, a spokesman for Special Counsel Scott J. Bloch
<http://www.washingtonpost.com/ac2/related/topic/Scott+Bloch?tid=informline>
, declined to comment on the investigation. Justice spokesman Peter A. Carr
also declined to comment on the probes.

David Schultz, who teaches law at the University of Minnesota
<http://www.washingtonpost.com/ac2/related/topic/University+of+Minnesota?tid
=informline>  and business administration at Hamline University in St. Paul,
said: "A lot of this stuff appears to go beyond the U.S. attorneys' issue
and is just about her unprofessionalism. The real complaint may just be that
she's a political hack who just isn't qualified to manage the office."

Even some of Paulose's detractors describe her as brilliant, and she has
many fans among lawyers of both parties who have worked with her. A.M.
"Sandy" Keith, a former Minnesota Supreme Court justice and a prominent
Democratic lawyer in the state who has known Paulose since college, said
Paulose's reputation has been unfairly maligned because of the Washington
uproar over the U.S. attorney firings.

"She's gotten dragged into this, and I think it's unfortunate," Keith said.
"I know she's an extremely competent lawyer. Everything she's ever done,
she's done well. . . . If she has any problems, it could be administrative,
because obviously she had never run anything before."

"I'm a strong-willed person," Paulose told the Star Tribune
<http://www.washingtonpost.com/ac2/related/topic/Star+Tribune+Company?tid=in
formline>  newspaper in Minneapolis in April. "I think that I'm also a
generous and loyal and kind person."



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