‘Space Alliance’ charges may be too late

It may be too late to file charges against three former University of Montana employees accused of misusing taxpayer money, said Missoula County Attorney Fred Van Valkenberg on Tuesday.

The former employees, including two administrators, are under investigation for potential conflict of interest and nepotism violations, stemming from their involvement with the Inland Northwest Space Alliance, a private organization UM helped create.

The window of opportunity for prosecutors may have passed, though. Montana’s statute of limitations prohibits prosecution of misdemeanors more than one year after they are alleged to have occurred and of felonies other than murder after five years.

Nepotism and conflict of interest violations would probably only qualify as misdemeanors, Van Valkenberg said. The actions for which the employees are being investigated took place in 2003.

The targets of the investigation are Lloyd Chesnut, former vice president of research and development; his wife, Rollene Chesnut, also a former UM employee in the research department; and George Bailey, who worked directly under Lloyd Chesnut.

Both Lloyd Chesnut and Bailey were instrumental in establishing INSA in the spring of 2003, and both left UM soon after that to take paid positions with INSA.  Bailey became the organization’s CEO, Lloyd Chesnut was named chairman of the board, and Rollene Chesnut took a job as the business manager.

Lloyd and Rollene Chesnut moved to Texas later that year, but Rollene Chesnut remained on the INSA payroll and was paid $104,000 in 2004.

The whole matter came under scrutiny last spring and was investigated by the state legislative auditor. In June, the state criminal council turned the matter over to the Missoula County Attorney’s Office.

“It would appear that the matters that the legislative auditor identified are misdemeanor violations, and the statute of limitations had come up before the matter was even referred to me,” Van Valkenberg.

Nonetheless, the matter remains under investigation, and Van Valkenberg would not rule out the possibility of criminal charges. He did not know when a final decision would be made.

In the wake of the scandal, INSA moved from a posh North Reserve headquarters to a smaller downtown building.