Full Breakdown
Investigation Reveals Missteps by Former Alaska Revenue Commissioner in State Investment
1/27/2026, 6:53:45 AM
Overview of the Investigation
An investigation into former Alaska Revenue Commissioner Adam Crum has revealed significant deviations from state policy regarding the investment of state savings. The review, conducted by the D.C.-based law firm WilmerHale, was initiated by Governor Mike Dunleavy after concerns about Crum's investment decisions surfaced last summer. The investigation concluded that Crum failed to perform necessary due diligence before committing approximately $50 million from the Constitutional Budget Reserve to the private equity firm DigitalBridge.
Key Findings of the Review
The WilmerHale report highlighted that Crum did not adhere to the Department of Revenue protocols designed to ensure fiduciary duties were met. Specifically, it noted that Crum engaged outside legal counsel without the approval of the attorney general, which is a requirement under state law. The report indicated that Crum intended to invest $75 million but ultimately committed $50 million, resulting in a loss of about $859,000 after the investment was sold to an Israeli insurance company. A portion of the funds not invested yielded $325,000 in interest, partially offsetting the loss.
Senator Bert Stedman, a Republican from Sitka, criticized the investment as unsuitable for the Constitutional Budget Reserve, stating, “Clearly, this was an unsuitable investment for the (Constitutional Budget Reserve). No question about it.” Following the findings, Stedman introduced a bill to prohibit the state from conducting business with DigitalBridge.
Crum's Defense and Response
In response to the investigation, Crum defended his actions, asserting that he aimed to enhance the returns of the state savings account while promoting investment in Alaska. He claimed to have maintained communication with the Department of Law and the governor’s office regarding the investment. Crum characterized the issues raised by the investigation as “procedural,” emphasizing that his role did not require him to be technically proficient in every detail, as he relied on his staff for expertise.
Despite Crum's assertions, the investigation found that he did not inform the governor’s budget office, the legislative auditor, or members of the Legislature, which is mandated by state policy for non-routine investments.
Official Responses and Future Implications
Governor Mike Dunleavy responded to the findings by issuing an administrative order that implements several recommendations from the report. These changes aim to enhance transparency and impose additional checks on the revenue commissioner's authority to invest in unconventional assets.
The investigation did not uncover evidence of criminal wrongdoing or self-dealing, but it raised critical questions about the adherence to state investment protocols and the responsibilities of public officials in managing state funds.
Verbatim Quotes
- “Clearly, this was an unsuitable investment for the (Constitutional Budget Reserve). No question about it,” — Senator Bert Stedman, Republican, Sitka
- “I actually had multiple communications with (the Department of) Law, even with Treasury staff, trying to actually figure out what — I would send emails and ask the questions that say, have we met all of the legal duties in order to actually fulfill this?” — Adam Crum, Former Revenue Commissioner
- “It’s not about being technically proficient on all that stuff. It’s knowing the overall concepts,” — Adam Crum, Former Revenue Commissioner
Conclusion
The investigation into Adam Crum's investment decisions underscores the importance of adherence to state laws and protocols in managing public funds. As Alaska moves forward, the implementation of new checks and balances aims to prevent similar issues in the future.
