JUNEAU — One of Alaska Gov. Mike Dunleavy’s nominees to the Alaska Mental Health Trust Authority board of directors has withdrawn his name from consideration after the Daily News published details of an internal investigation that found Joe Riggs “behaved inappropriately” with a trust employee in a Juneau bar.
Riggs has an extensive history as an investment adviser and a medical-device representative and ran unsuccessfully in the Republican primary for House District 26 last year. Rep. Laddie Shaw, R-Anchorage, won the seat in the general election.
Riggs’ withdrawal from consideration was announced Thursday evening by the House Finance Committee, which had been scheduled to hold a Friday hearing on his confirmation. The withdrawal was confirmed by the governor’s office.
Riggs’ withdrawal allows the governor to consider another nominee for the trust position.
[Internal report says Alaska Mental Health Trust nominee ‘acted inappropriately’ at Juneau bar]
The trust controls more than $500 million in investments, plus vast tracts of land and real estate across Alaska. Its mission is to turn those resources into revenue for the state’s comprehensive mental health program.
According to a complaint filed by a trust employee against Riggs in early February, Riggs touched the employee on the cheek and shoulder during a conversation that made her uncomfortable. Criminal conduct was not alleged, and Riggs was not a trust employee.
When contacted by the Daily News, Riggs vigorously denied wrongdoing and said he suspected the accusation could be politically motivated. Knowledge of the complaint was brought to the Capitol by Senate Minority Leader Tom Begich, D-Anchorage.
Several Dunleavy appointees, including one commissioner, have withdrawn their names from legislative consideration after they encountered problems during the vetting process.
Recently, Trevor Shaw, an appointee to the Alaska Commission on Judicial Conduct, withdrew his name from consideration after Republican lawmakers questioned his knowledge of a teacher sex abuse scandal while he served on the Ketchikan School Board.
The governor’s pick to replace Shaw, Hank Bartos of Fairbanks, is facing legal troubles relating to management of the Ice Alaska ice-carving contest, and declined the governor’s nomination.