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Executive Councilor Karen Liot Hill describes herself as “the top Democrat in state government in New Hampshire,” but that didn’t stop the New Hampshire Attorney General’s Office from hitting her with a fine and a cease-and-desist letter over her 2024 campaign filings.

The good news is she can use campaign funds to cover her $1,000 fine.

A letter from Senior Assistant Attorney General Brendan O’Donnell this week informed the Lebanon Democrat of the penalty for her campaign committee’s multiple 2024 violations. She was caught using thousands of dollars in donor funds for personal expenses, according to the letter.

“Expenditures for personal subsistence, such as clothing, home heating oil, groceries, and personal meals, are not proper expenditures,” O’Donnell wrote.

Liot Hill declined to respond to NHJournal on Friday when contacted for this story.

Whatever her ranking in the state party — real or imagined — O’Donnell made clear that she has an obligation as an elected official to follow the law. Noting that Liot Hill was a first-time candidate for statewide office in 2024, he wrote, “You chose to run for Executive Council and to accept more than $100,000 in campaign contributions.

“Those decisions created an obligation for you to familiarize yourself with campaign finance requirements, ensure that your personal and campaign accounts were kept separate, and ensure that no contributions were expended for personal subsistence.”

The letter ends the investigation that began after NHJournal broke the story of Liot Hill’s spending irregularities. After NHJournal began looking into her finances, Liot Hill filed amended reports to correct some of the spending. She also took the unusual step of removing her campaign treasurer, Corinne Morris, from the reports and listing herself as the campaign’s treasurer for the “corrected” filings.

But her amended reports raised more questions than they answered, setting off the investigation, according to O’Donnell’s letter.

Liot Hill told investigators the fixes were necessary, in part, because she occasionally mixed up her campaign credit card with her personal card at places like the grocery store, an urgent care clinic, or when paying for home heating oil.

The Democratic executive councilor also claimed she mistakenly believed she was allowed to use campaign donations to pay for expenses such as clothes, house cleaning, gifts for volunteers, and the cost of her car registration.

O’Donnell’s letter gives Liot Hill credit for cooperating with investigators and paying back expenses deemed improper. Under the terms of the letter, she is to cease and desist from any more campaign finance violations, and her campaign committee must pay a $1,000 civil fine.

Meanwhile, Liot Hill’s unconventional approach to campaign finance continues.

While the first-term councilor won’t face voters again until at least September 2026, her June 2025 campaign finance report claims she covered more than 9,670 miles on the campaign trail as of June 1. As a result, she paid herself $6,771.70 from her campaign fund to cover the costs.

In addition to the mileage, Liot Hill’s campaign filings include $2,518 for candidate travel. However, the report indicates that $2,462 of those “travel” expenses were actually three separate payments to Gills Point S Tire & Auto Service in West Lebanon.

But that’s not all for the District 2 road warrior.

Every executive councilor receives an annual mileage and expense stipend on top of their modest $18,000-a-year salary. Councilors from Districts 3, 4, and 5 get $7,980 per year. But because Districts 1 and 2 — Liot Hill’s — are so geographically large, they receive $11,970.

Adding six months of her Executive Council travel to her campaign filing, Liot Hill had already received more than $15,000 in travel reimbursements from donors and taxpayers as of June 1.

“My takeaway is that she’s a disaster,” one campaign veteran with direct knowledge of the state’s financial disclosure system told NHJournal on background.

“In theory, she was basically laundering money. She was using the campaign to pay for her basic living expenses and then spending her personal money on campaign stuff (totally believe that), then not reimbursing herself the full amount because it was offset by her accidental charges to the campaign?”

“It’s either entirely untrue or she has the personal finance skills of a 12-year-old,” the campaign professional added.

The Attorney General’s Office also levied fines against three GOP committees, all for missing filing dates:

• A $2,000 fine against House Majority Leader Jason Osborne (R-Auburn);
• A $1,500 fine against the Committee to Elect House Republicans;
• A $500 fine against Granite Solutions,  a Political Advocacy Organization organized by Rep. Joe Sweeney (R-Salem) to support the election of fiscal conservatives.

New Hampshire’s self-styled “Top Democrat,” Executive Councilor Karen Liot Hill (D-Lebanon), says her decision to recuse herself from the upcoming vote on Attorney General John Formella’s reappointment is the result of partisan politics.

Critics say the real issue is much simpler: How can Liot Hill vote on an attorney general whose office is currently investigating her on charges of campaign finance violations?

Approving the attorney general and other key state government nominees is a central part of an Executive Councilor’s duties. In a statement to the left-leaning news outlet InDepthNH, Liot Hill blamed her recusal on the GOP.

“Since the Republicans are continuously calling for AG investigations of my work, most recently emails I sent from my official email address advocating for my constituents’ right to vote, I will be recusing myself from the Attorney General’s confirmation vote to prevent even the perception of a conflict of interest,” Liot Hill said.

She did not mention the fact that the Attorney General’s Election Law Unit is conducting an ongoing campaign finance investigation of Liot Hill, one that has been underway for nearly a year.

“Frankly, I don’t understand why this is taking so long,” said Executive Council Chair Dave Wheeler (R-Milford).

The scheduled Sept. 17 vote on Formella’s reappointment is likely a foregone conclusion. Formella is a GOP holdover from Gov. Chris Sununu’s administration who is unlikely to be rejected by the council’s 4-1 Republican majority.

Wheeler suspects Liot Hill’s recusal statement is more about managing the optics of her vote against Formella than the vote itself.

It’s hardly a surprise that a progressive Democrat like Liot Hill would oppose Formella’s nomination. Her predecessor, and fellow progressive, Councilor Cinde Warmington, voted against Formella when he was first nominated in 2021.

Still, Wheeler says, the current circumstances are problematic for Liot Hill. Casting a vote against Formella with the open investigation pending would look bad, he said.

“My guess is she would be inclined not to vote for a conservative, and it would then look like she voted that way for being investigated,” Wheeler said.

It’s not unheard of for councilors to recuse themselves from voting on appointments when there’s a conflict of interest, such as when the nominee happens to be related to a councilor. But Wheeler, who has been a councilor off and on since 2001, can’t recall a councilor ever recusing themself due to a pending investigation.

“Not that I can think of,” Wheeler said.

Liot Hill stopped responding to questions from NHJournal after it began reporting on her campaign finance filings, as well as her efforts to help a Democratic law firm sue the Granite State. NHJournal reached out to her again on Wednesday seeking comment, to no avail.

The investigation into Liot Hill’s campaign finances was opened in October, soon after NHJournal found that the Lebanon Democrat spent thousands in campaign cash on meals, clothes, and visits to salons during the 2024 race. Her campaign expenditures included a $190 ferry ride to the Hamptons and $181 to register her car, as well as repairs around her home. The New Hampshire Attorney General’s Office confirmed to NHJournal on Aug. 14 that the campaign finance probe is still ongoing.

Last week, Liot Hill told InDepthNH that as a result of the investigation, she has already repaid her campaign $2,000 “mostly for clothes and other expenses,” and amended her campaign finance reports. But those reports were amended in November of last year.

NHJournal uncovered emails Liot Hill sent from her government email account last month on behalf of the Elias Law Group seeking to help recruit plaintiffs for a voting rights lawsuit against the state over SB 287. Liot Hill refused to answer when NHJournal asked if she was getting paid by Elias to help find plaintiffs.

Elias Law Group, founded by Marc Elias, is a prominent — and notoriously partisan — D.C. law firm connected to the 2016 Russia hoax scandal. Liot Hill later claimed she was merely helping constituents by finding potential plaintiffs for Elias.

“My job as an elected official is to advocate for my constituents, which is exactly what I do every day,” she told InDepthNH.

That kind of advocacy can get pricey, however. According to recent campaign finance reports, Liot Hill drove more than 9,700 miles for her upcoming 2026 campaign and paid herself $6,771.70 in mileage reimbursement out of those donor funds. The campaign paid her another $2,518 for candidate travel, of which $2,462 was spent at Gills Point S Tire and Auto Service in West Lebanon. Taxpayers also chipped in $11,970 for her annual Executive Councilor mileage/expense stipend.

After her Elias-related constituent services were revealed, House Deputy Majority Leader Joe Sweeney (R-Salem) called for Liot Hill to resign or face impeachment.

“That’s not public service; that’s political lawfare run out of a taxpayer-funded inbox,” Sweeney wrote in a statement.

New Hampshire Republican Party Chairman Jim MacEachern sent a letter to the Attorney General’s Office asking for an investigation into Liot Hill’s emails on behalf of Elias.

“Granite Staters expect their elected officials to use their positions to serve the people, not to further their political interests. Liot Hill’s decision to use her official capacity to communicate on behalf of a political law firm adds to the ethical concerns that have already been generated by her previous scandals,” MacEachern wrote.

The Attorney General’s Office never confirms or denies the existence of any pending investigation. After MacEachern’s letter was sent, Department of Justice spokesman Michael Garrity said the letter would be taken under advisement.

“We will assess the information provided and determine the appropriate course of action based on the facts and applicable law.”

Calling herself “the top Dem” in state government, Executive Councilor Karen Liot Hill (D–Lebanon) has been using her official position to recruit plaintiffs for a potential lawsuit against New Hampshire’s newly enacted voter ID law, and directing them to a high-profile Democratic law firm in Washington, D.C.

In emails sent from her official Executive Council account and obtained by NHJournal, Liot Hill refers potential plaintiffs to the Elias Law Firm. That’s the same Marc Elias who helped Hillary Clinton fund the research used in the now-debunked dossier behind the Russia collusion hoax.

While Liot Hill’s actions may or may not be illegal, critics point out that she’s trying to help a Washington, D.C., law firm sue the state of New Hampshire—which could cost the state hundreds of thousands of dollars—while serving as one of New Hampshire’s fiscal watchdogs.

“This is astonishingly bad judgment from a member of what effectively serves as our state’s board of directors, ignoring her fiduciary duty to our citizens and taxpayers in favor of shameless partisan hackery,” a New Hampshire attorney who does business before the Executive Council told NHJournal on background. “Sad.”

The Elias Law Firm that Liot Hill is helping is notorious for its aggressive—and expensive—legal tactics on behalf of Democratic clients and causes, such as opposing voter ID requirements.

“I am writing to ask for your help,” Liot Hill wrote. “SB 287 was recently signed into law. This is a bill that will make it harder for people to vote in New Hampshire by forcing every absentee voter to provide a copy of an acceptable photo ID—or appear in person before a clerk or a notary—each time the voter requests an absentee ballot for any election.

“I am working with some folks who are trying to identify voters who will be impacted by SB 287, and I was thinking that this may affect older folks/mobility-challenged individuals,” she wrote to Chuck Saia, executive director of the Governor’s Commission on Disability.

“Would you be willing to have a call with Tina (copied on this email, contact information below) to talk further?” Liot Hill added.

“Tina” is Tina Meng Morrison, the Elias Law Firm attorney copied on each email. Morrison’s contact information appears immediately above Liot Hill’s official Executive Council email signature.

Other emails obtained by NHJournal had nearly identical messaging and were sent to:

• Lisa Beaudoin, Strategies for Disability Equity

• Donnalee Lozeau, Community Action Partnership of Hillsborough and Rockingham counties

• Isadora Rodríguez Legendre, The Developmental Disabilities Council

• Olivia Zink, Open Democracy

Unanswered in the emails: Liot Hill’s financial relationship with the law firm. Is the Executive Councilor being paid or receiving any remuneration for her work? Has the Democratic law firm donated to her campaign? Neither Liot Hill nor Meng Morrison would say.

In fact, Liot Hill declined to respond to any questions from NHJournal, which she described in her email to Meng Morrison as “a Republican online news source.”

“I’m the top Dem in state govt in NH, and they are always attacking me,” Liot Hill complained. “I’ve stopped responding to them. I am also interested to know who forwarded my email to them.”

Liot Hill sent NHJournal’s request for comment to the attorney, to which Meng Morrison replied, “Thanks for forwarding. If you could ignore this email for any comment, that would be much appreciated.”

If she is getting paid, Liot Hill’s email campaign is ethically murky. Elected officials in New Hampshire are governed by different sets of rules. Members of the executive branch, like Liot Hill, have fewer restrictions than state legislators.

But murky finances are part of Liot Hill’s history.

According to her campaign disclosures, the Lebanon Democrat has spent thousands in campaign cash on meals, clothes, and visits to salons during the 2024 race. Her campaign expenditures included a $190 ferry ride to the Hamptons and $181 to register her car, as well as repairs around her home.

This year, she has already been reimbursed for tens of thousands of dollars in travel and other costs, despite not facing the voters again until next year.

“It should come as no surprise that Karen Liot Hill is involved in another unethical scandal. She previously misused campaign dollars; now we come to learn that she’s electioneering with taxpayer dollars,” New Hampshire GOP Chair Jim MacEachern said. “It’s shameful that she is still in her position. Granite Staters deserve better.”

Elias Law Group founder Marc Elias is a heavy hitter in the Democratic Party. He was the DNC lawyer from 2009 through 2023 and served on Secretary of State Hillary Clinton’s presidential campaign. His firm represented the Democratic mail shop that sent illegal mailers into New Hampshire’s 2nd Congressional District’s GOP primary in 2022. The mail shop eventually agreed to resolve a New Hampshire Attorney General investigation with a three-year agreement that included payment of a $40,000 fine.

Elias told The New Yorker in 2021 that his firm “represents only clients who meet at least one of three criteria: they must be Democrats or an organization that helps Democrats win elections; they are bringing cases that challenge laws that restrict voting; or they are a progressive group that meets the values of our firm.”

Executive Councilors John Stephen and Dave Wheeler, both Republicans, attended an Americans for Prosperity – New Hampshire event Wednesday night discussing the role of Executive Councilors in state government. Neither would comment on their colleague’s actions, but Wheeler did acknowledge that if the state is forced to hire outside counsel to deal with an Elias lawsuit, that contract would come before Liot Hill and the Executive Council for approval.

“I don’t know any of the circumstances,” Stephen said of Liot Hill’s emails. “But I think the law is a great law, and I’m so proud that the legislature passed the law to show proof of identity and citizenship and residency in order to vote.”

Months after a state audit revealed incompetence and gross mismanagement at the New Hampshire Commission for Human Rights (HRC), no-show Executive Director Ahni Malachi is finally out.

Republican Gov. Kelly Ayotte has pledged to reform the scandal-plagued agency, which emerged as a symbol of government ineptitude during the Sununu administration. Ayotte recently appointed a new chairman, Ray Pinard, and vice chair, Dr. Stewart Levenson, tasking them with fixing the failing commission.

Malachi could not be reached for comment. Her LinkedIn profile indicates she left her position in May, though NHJournal could find no record of her departure in Executive Council meeting minutes or in publicly available HRC records.

Critics say that lack of transparency is consistent with the agency’s conduct during Malachi’s tenure.

Pinard did not respond to multiple requests for comment on Wednesday, and Levenson referred all questions regarding Malachi to the Governor’s Office. NHJournal did not receive a response from Ayotte’s staff.

Malachi’s LinkedIn also lists her current role as a full-time human rights compliance consultant for “Singnalfire (sic) Consultants.” NHJournal was unable to find contact information for the organization.

Under state law, the Executive Council must formally accept resignations and appointments for positions such as Malachi’s. At its Wednesday meeting, the council accepted the resignation of Commissioner Basra Mohammed, an immigration attorney for New Hampshire Catholic Charities. Mohammed did not respond to a request for comment regarding her departure from the board overseeing the embattled agency.

In February, the Office of the Legislative Budget Assistant released a performance audit revealing that the HRC was deeply mismanaged and essentially nonfunctional. At the time, the commission had a backlog of 237 unresolved cases, some dating back to the Reagan administration.

According to the audit, it took the commission an average of 18 months just to assign a complaint to an investigator, and nearly another year to resolve the case.

Due to those delays, the statute of limitations often expired before a decision was issued, denying complainants the ability to pursue their claims in court.

“Our review of 228 cases closed during the state fiscal year 2023 found the Commission took an average of 840 days (2.3 years) to close a case. We found 62 of 228 cases (27.2 percent) reviewed were closed after the three-year statute of limitations that would have allowed complainants to have their cases heard in Superior Court,” the audit stated.

The report placed blame squarely on the HRC’s leadership.

“We found the Commission did not perform necessary management control responsibilities such as developing a strategic plan; defining objectives; developing performance measures; identifying, analyzing, and responding to operational risks; and resolving prior audit findings,” the audit concluded. “As a result, there was an increased risk the Commission would not achieve its objectives.”

The 92-page report also included anonymous, sharply critical statements from attorneys who interacted with the agency.

“Over the last few years, the investigators in my cases never reached out or talked to my witnesses. In other words, cases were delayed for years and then decided without talking to witnesses,” one attorney said.

“This agency should either be completely overhauled or eliminated. As constituted, it serves no purpose,” said another.

“Because the investigators are not experts in the law, they fail to ask for evidence from the employers that would be required,” added a third.

“I’ve been told in several cases that none of the witnesses I listed were contacted,” said a fourth.

Malachi’s responsibilities as executive director included overseeing the commission’s daily operations, staff management, and budgeting. Before being appointed by then-Gov. Chris Sununu, she worked as a public service manager at WMUR.

She has been on extended sick leave since last year, during which time investigator Katrina Taylor has served as acting executive director. Malachi’s absence drew scrutiny within the agency after it was revealed she took time to assist the City of Concord in hiring “Cash Cow Consultant” James Bird Guess as a diversity, equity, and inclusion (DEI) consultant.

In the wake of the horrific murder of 25-year-old Sandra Marisol Fuentes Huaracha’s murder by her estranged husband, Michael Gleason Jr., the state’s Supreme Court chief justice has ordered a review.

But that’s not fast enough for Executive Councilors Joe Kenney (R-Unity) and John Stephen (R-Manchester), who have written the court and asked for Magistrate Stephanie Johnson to be immediately barred from hearing more bail cases due to her troubled track record.

“Pursuant to Supreme Court Administrative Order 2024-03, which empowers the Chief Justice to remove a magistrate for cause at any time during their five-year term, we urge you to exercise this authority without delay and remove Magistrate Johnson from her position,” they wrote to state Supreme Court Chief Justice Gordon MacDonald and Administrative Judge Ellen Christo.

“This step is essential not only to hold accountable those whose judgments have led to preventable loss but also to restore confidence in our bail processes. We stand ready to support any necessary reforms to strengthen our system and prioritize victim safety.”

Kenney raised questions about the case when the Executive Council met in Coos County last week, and Stephen has been railing about Johnson since learning about her role in a previous bail fiasco.

“You don’t have to be a rocket scientist to know this magistrate’s not making appropriate decisions. And some are so outrageous, you have to question her ability to sit and judge on these cases going forward, and I want to make sure we do the best we can for our victims,” Stephen said on the NHJournal podcast Monday.

“I called on the court to immediately remove this magistrate from any of her duties. And we’ve got to be serious about bail, and we have to stop this nonsense,” Stephen added.

In late April, Johnson allowed Gleason out on $5,000 cash bail after his arrest on serious felony charges, including sexual assault, kidnapping, domestic violence, and theft. Gleason eventually posted bail and, on the morning of Sunday, July 6, made his way to La Casita Mexican restaurant in Berlin, where Fuentes Huaracha worked.

He shot her multiple times with a shotgun, then went into the bathroom and turned it on himself, according to the state Attorney General’s Office.

This isn’t the first time Johnson’s been called out for allowing a violent criminal to get bail. In February, Johnson allowed Kyle Bisson, 26, to go free on no-cash bail after he was charged with stabbing a Manchester man between 9 and 13 times during an altercation on Elm Street. At the time, Bisson’s criminal record included a conviction for domestic violence. 

Stephen said he called for action against Johnson at the time. Now he says he won’t sit back and wait.

“I’m not trying to be vindictive. I just want to make sure we protect the public and safety,” Stephen said.

“I have asked the court — and I spoke to the administrative head of the courts — to please make sure this individual, at the minimum, is not hearing any more bail cases.”

State Supreme Court Chief Justice Gordon MacDonald announced Monday he’s assigning Christo and Associate Supreme Court Justice Mellisa Countway to review the Gleason case and how Johnson handled it.

“The judicial branch will work with the Domestic Violence Fatality Review Committee to the extent the committee examines the circumstances in these cases,” according to a statement from MacDonald’s office.

Johnson was appointed in December to be one of New Hampshire’s first bail magistrates under yet another legislative change to the state’s beleaguered bail system. Gov. Chris Sununu first signed a bail reform bill into law in 2018, which was supposed to make it easier for non-violent offenders to get no-cash bail. Instead, many charged with violent crimes were getting out and committing new crimes due to the reform.

Last year’s legislative attempt to update the reform added magistrates like Johnson to the mix. The 2024 law required people charged with serious, violent crimes to get bail hearings before a judge or magistrate. The new bail magistrates solely set bail for people charged with serious crimes when judges were not available, like on weekends or holidays.

Johnson is a private practice attorney who has been a prosecutor for several years. She worked as an assistant attorney general for the New Hampshire Department of Justice and as a Rockingham Assistant County Attorney.

Stephen said he’s concerned by comments suggesting concerns about the costs of keeping suspects like Gleason in jail may have played some role in the magistrate’s ruling.

“The county is going to have to pay the expenses of (holding) an individual prisoner,” Stephen acknowledged.

“We shouldn’t be looking at cost in the equation of whether someone’s a risk to the public,” Stephen added. “If that’s happening, that’s wrong. And it’s got to stop.”

Gov. Kelly Ayotte pushed for a whole new bail system that keeps violent offenders in jail as soon as she was sworn in as governor this year. Her bail reform, which takes effect in January, does away with magistrates. She told the Executive Council last week that Huaracha might be alive if her reform had been in effect earlier this year.

“There’s a reason why one of the first priorities I had as governor was to make sure that we reversed some of the so-called reforms that were made that led to these unintended consequences that were very tragic,” Ayotte told the Council.

Stephen isn’t alone in singling out Johnson. Last week, Rep. Lori Korzen (R-Berlin) sent Johnson a letter demanding she resign from her post. 

“Our community deserves leaders who act with the utmost vigilance and responsibility, particularly in matters where lives are at stake,” Korzen wrote. “My deepest sympathies remain with the family of Marisol Fuentes and all those affected by this senseless act. I urge you to consider the impact of this decision and to take the necessary steps to help our community heal and move forward.”

Robynne Alexander was known as a “Real Estate Investor Goddess,” who taught others how to make fortunes investing in property.

But the woman behind the failed $21.5 million bid for the Laconia State School property is now set to plead guilty in a federal fraud case after she allegedly stole millions from her former students, according to the New Hampshire Bureau of Securities Regulation.

“Many individuals put their entire retirement savings into the hands of Alexander, who abused their trust and enticed them with returns that she could not deliver,” said Michael Gallagher, Bureau staff attorney.

After investigations by the Bureau of Securities Regulation and the United States Securities and Exchange Commission, Alexander agreed to pay more than $3 million in restitution to her victims, in addition to the criminal charges filed in federal court. 

According to the Bureau’s consent order with Alexander, she took money from 30 people, many of whom she met through her investing classes. She touted her experience developing large projects like apartment complexes and retail developments without telling her investors that her short history in real estate mostly consisted of flipping houses.

Alexander created several LLCs for various projects and used investor money for some start-up costs, as well as high-interest loans from “nontraditional” lenders for the rest. She never told her investors about the loans, according to the consent order. She also didn’t tell them about using their money for her own personal expenses, fictitious payments to investors she liked, or a month-long vacation to Paris, Barcelona, Valencia, Nassau, Florida, and New Orleans.

Some investors were enticed by too-good-to-be-true 80 percent projected returns on their money. Her projects ran into trouble, and Alexander began paying some investors with money from other investors, the classic hallmarks of a Ponzi scheme.

After Gov. Chris Sununu pushed for a law in 2021 to let him manage the sale of the Laconia State School property, Alexander put herself and one of her companies forward with a $21.5 million bid to turn the 600 acre property into a new village that included housing, retail, entertainment, hiking trails, and more. 

Alexander’s winning bid began getting negative attention as people close to the deal started asking questions about her financing. Her $21.5 million bid was far higher than the other offers the state received.

Sununu, guest hosting for Jack Heath’s radio show, said Friday as news broke that former Executive Councilor Ted Gatsas (R-District 4) gets credit for raising arms about Alexander.

“You know, Gatsas was one of the ones on the council that said, ‘We could have a problem here.’ And, you know, he really understood the financing of some of the things with that organization,” Sununu said.

After at least four deadlines passed for Alexander to close the Laconia deal, Sununu and the councilors moved on.

“And after three or four extensions, we’re like, ‘Okay, enough is enough.’ And we pulled the plug, rightly so. But Ted was one of the ones who was just really smart in terms of what we were potentially walking into. And [he] put up the red flags for us, and really drove the message to get us to pivot, and it was clearly the right thing to do.”

The state is currently working with a new investment group that has an offer to buy the property for $10 million.

The Laconia State School bid came apart just as Alexander’s whole business model imploded. 

“Eventually, the high interest rates from nontraditional lenders, various lawsuits, and the promised returns to investors caught up with [Alexander], and her scheme collapsed,” the consent order states.

Alexander is paying $3 million to victims through the SEC enforcement actions, and another $96,000 to victims through the New Hampshire Bureau investigation. She also agreed to give up any licensing to sell securities anywhere, and not to be head of any company anywhere.

“This settlement shows that people will be held accountable when they mishandle and misuse investor funds for their own personal gain at the expense of hard-working individuals who are simply trying to meet their retirement goals,” Gallagher said.

Executive Councilor Karen Liot Hill may or may not be “the top Democrat in state government,” as she claims. But she is definitely the king of the road.

While the first-term councilor won’t be facing the voters again until (at least) September of 2026, her latest campaign finance report claims she’s already covered more than 9,670 miles on the campaign trail as of June 1. As a result, she’s paid herself $6,771.70 from her campaign fund to cover the costs.

In addition to the mileage, Liot Hill’s campaign filings include $2,518 for candidate travel. However, the report indicates that $2,462 of those “travel” expenses were actually three separate payments to Gills Point S Tire & Auto Service in West Lebanon.

But that’s not all for the District 2 road warrior.

Every executive councilor receives an annual mileage/expense stipend on top of their modest $18,000 a year salary. Councilors from Districts 3, 4, and 5 get $7,980 per year. But because Districts 1 and 2 — Liot Hill’s — are so geographically large, they receive $11,970. 

Add six months of her Executive Council travel to her campaign filing, and Liot Hill has already received more than $15,000 in travel reimbursements as of June 1.

Liot Hill reported $39,590 in this fundraising revenue this reporting period, mostly from individual donors, and spent $30,416. Of that spending total, $7,530.91 — or about 25 percent — went to Liot Hill herself.

Eye-grabbing campaign spending is nothing new for Liot Hill, despite the fact that her job as executive councilor is to review contracts and impose fiscal accountability on state government.

Her previous filings are already under investigation by the Election Law Unit of the New Hampshire Attorney General’s Office. Questions were raised about the accuracy and authenticity of her filings when, after an NHJournal report on her spending, Liot Hill filed an updated version with significant revisions. The originals bear the signature of her treasurer, former state Rep. Corrine Morse. For the revisions, Liot Hill replaced Morse as her own treasurer and signed the documents herself.

Asked by NHJournal if she had in fact signed the original documents, Morse declined to respond.

Liot Hill has also declined to respond to repeated requests for comment about her campaign spending. Her new report lists accountant Michael Button as her campaign treasurer.

Liot Hill’s latest campaign filing is very different from those of her executive council colleagues.

District 3 Republican Janet Stevens reported raising $18,795 from Jan. 1 through June 1, and spent $12,923. Most of Stevens’ spending went to media consultants ($4,950) and campaign consultants ($2,250). She spent another $2,900 total on yard signs and food for fundraising events. Stevens does not claim any payments for reimbursements, travel, mileage, or candidate meals in her report.

Councilor John Stephen (R-District 4) reported $92,701 raised during the same period. His campaign spent just $4,523. Stephen claimed a $66 reimbursement for event supplies, and nothing for mileage, travel, or candidate meals.

Liot Hill, who had been the elected treasurer for Grafton County, was found in default this month in a small claims case over her failure to pay $4,234 in credit card debt. According to court records, Liot Hill never responded to the complaint filed in February in the Lebanon District Court.

Executive Councilor Karen Liot Hill calls herself “the top Democrat in state government.”

But a New Hampshire court just called her a deadbeat.

A court declared Liot Hill in default over her failure to repay $4,234 in outstanding credit card debt. It’s the latest in a series of financial faux pas by a state official whose job is to prevent fraud and overspending in state contracts. 

Liot Hill is already under investigation by the New Hampshire Attorney General’s Office Election Law Unit over questions about her campaign spending in her race for executive council. The longtime Lebanon city councilor and four-term Grafton County treasurer spent thousands of campaign dollars on personal items like $190 for a ferry ride to the Hamptons, $181 to register her car, and $250 for a haircut at Rio Blanco Salon. There were also two unexplained checks totaling $1,350 corresponding to two court cases against Liot Hill; one a violation for driving with a suspended license, and another involving a debt collection on a car loan.

In the current credit card debt case, Liot Hill stopped making payments about the same time she started running for executive council.

According to court records, Liot Hill never responded to the complaint filed in February in Lebanon District Court.

Liot Hill did not respond to requests for comment from NHJournal on Monday, either.

In an interview with the Valley News that was published this weekend, Liot Hill touted her important place in the Democratic Party.

“I am an executive councilor, but I’m actually the top Democrat in state government,” Liot Hill said in the interview. “I feel a responsibility to try and communicate with my constituents and also to be a presence and to be a voice for Democratic values across the state.” And her answer to a question about running for governor or Congress was “never say never.”

Republicans say Liot Hill lacks the values — or the record of responsibility — for the job she has now.

“When I applied to be dean at the University of New Hampshire, they ran a full background check, including my credit score, because I was going to be put in charge of a budget of $30 million or so,” said state Sen. Dan Innis (R-Bradford). “It would seem to me that someone who has trouble with her personal finances shouldn’t be trusted with an entire state‘s finances.”

Liot Hill’s campaign finances have been the subject of multiple media reports. Soon after NHJournal published its first story about her extravagant campaign spending, she filed and amended spending reports to remove some items and clarify others. Two mystery checks were switched to reimbursements the campaign made to her for the purchase of software and other more legitimate expenses.

Also noteworthy: Liot Hill’s first campaign filing was signed by her campaign treasurer, Corrinne Morse. When Liot Hill filed the amended version changing the descriptions of her spending to less problematic expenditures, Morse had been replaced as treasurer. Instead, Liot Hill listed herself as treasurer and signed her own amended filing.

Asked by NHJournal if she had actually signed the original filings, Morse declined to answer.

Morse declined to respond to a request for comment on Monday as well. Perhaps with good reason.

Liot Hill has already filed paperwork indicating she plans to seek reelection in 2026. Her amended campaign committee registration form lists Morse as the treasurer for her upcoming campaign.

New Hampshire’s embattled Human Rights Commission (HRC) is getting two new members and, according to Gov. Kelly Ayotte, their first priority is reforming the failing agency.

The Republican governor told reporters after Wednesday’s Executive Council meeting that it’s past time to get the HRC functioning after a damning audit by the Office of Legislative Budget Assistant earlier this year. The report found unresolved cases that were years, and in some cases, decades old. One pending case dates back to the Reagan administration.

The audit also found the understaffed office and its poorly trained investigators have been mismanaged by leadership for years.

“I’ve been quite clear that those audit findings are unacceptable, and where we are right now with the Human Rights Commission is completely unacceptable,” Ayotte told NHJournal.

The Executive Council confirmed business leader Ray Pinard to the commission on Wednesday, and Ayotte nominated Dr. Stewart Levenson to another seat. Under the law creating the agency, Human Rights Commission members are appointed by the governor, and they are responsible for overseeing the staff, including the position of executive director.

But that’s hard to do, critics say, when Executive Director Anhi Malachi has gone AWOL.

Malachi, who’s been the HRC’s director since 2018, has rarely been in the office since last summer. She reportedly suffered a heart attack and has been on medical leave through January of this year. However, after returning to work part-time for a couple of weeks, Malachi again took leave and continues to be out of the office and incommunicado.

Emails obtained by NHJournal through a Right to Know request indicate Malachi is still not communicating with the HRC staff, including current Interim Executive Director Katrina Taylor. Malachi’s lack of communication with her office dates back to the summer, based on the emails. 

After informing staff through an email on July 27, 2024, that she would be out for an extended period, no Malachi emails appeared until January of this year.

It’s not clear how much Malachi worked until she went out on leave again for medical reasons. It’s also unclear whether Malachi informed any staff about her second leave. Taylor, who has been running the agency through the LBA audit, did not find out until Commissioner Elizabeth Asch informed her on Feb. 4, according to the emails.

Malachi’s absence is even more puzzling — and perhaps ethically questionable — after the HRC staff found out last fall that Malachi had been chairing a volunteer board for the city of Concord the entire time.

“Staff brought to my attention the attached and expressed concerns (and disappointment) that it appears Anhi is semi-working in other capacities but is seemingly unwilling or unable to communicate (by way of simple check-in) with HRC,” Taylor wrote to Asch on Nov. 14.

The attached document was a copy of the Sept. 30 meeting minutes of Concord’s Diversity Equity Inclusion Justice and Belonging (DEIJB) Committee. They included a letter from Malachi explaining her temporary absence from the DEIJB, and her promise to continue working with the committee even as she was out of contact with the HRC, where she was paid to work.

Some Republicans say the HRC’s lack of action and the subsequent lack of negative outcomes prove that the entire agency should be shut down. Ayotte doesn’t agree. She’s trying to fix the agency within the current law. She’s keeping the HRC funded in her budget proposal, and she’s waiving hiring freezes to get three more investigators on the job addressing the caseload backlog.

Asked about the HRC’s performance and whether senior staff should be fired, Ayotte noted that the agency doesn’t answer to the governor or the Executive Council. She also hinted that firing would be her preferred solution.

“If (the executive director) were a governor and council appointment, and perhaps that’s a proposal that the legislature might consider as well, then we obviously would take a different tactic here,” Ayotte said.

Ayotte pointed to the appointment of Pinard as a sign that Granite Staters can expect vigorous action — and soon. Pinard is known for turning around businesses, and he has pledged to put in 500 hours of his time to get the HRC reform started. 

“He offered to serve on the HRC following the release of the alarming LBA audit, and I applaud him for stepping up, offering to serve the State of New Hampshire, and willing to put in the time to overhaul the HRC, which he estimates will be 500 hours of his time. A self-described ‘change agent,’ he’s exactly what we need on the HRC right now,” said Executive Councilor Janet Stevens (R-District 3).

Reached Wednesday, Levenson said if confirmed, he wants to focus on building better policies and procedures that will serve the people of New Hampshire for years to come.

“It’s an important job, and unfortunately, I think there have been some issues in the past and that going forward we have to do better, and I think we can,” Levenson said.

Controversial Executive Councilor Karen Liot Hill’s 2024 campaign spending made headlines, and now it may be getting attention from the Attorney General’s Office as well. It confirms it is investigating the Lebanon Democrat’s campaign finances.

Questions about Liot Hill’s campaign finances began with NHJournal’s coverage of her lavish spending during the Democratic primary for Executive Council. Her allegedly campaign-related expenditures included charges for house cleaning, home heating oil, clothes, haircuts, groceries, gifts, payments to relatives, out-of-state trips, and more than $15,000 in gas and meal expenses.

Now, the New Hampshire Attorney General’s Office confirms to NHJournal that its Election Law Unit is investigating a complaint filed against Executive Councilor Karen Liot Hill (D-Lebanon).

“The New Hampshire Department of Justice Election Law Unit can confirm that there is an open campaign finance matter involving Executive Counselor Liot Hill,” Election Law Unit Chief Assistant Attorney General Brendan O’Donnell told NHJournal.

Liot Hill, an Upper Valley Democrat who previously served on the Lebanon City Council, refused to answer when NHJournal asked her about the investigation. Liot Hill simply shook her head in response to NHJournal’s questions.

The New Hampshire Attorney General’s Office declined to give details about the investigation, and the original complaint is not being made public at this time. NHJournal’s review of Liot Hill’s campaign finance reports, and her subsequent moves to correct the reports, uncovered curious details.

For example, nestled among her campaign receipts were two mystery checks that corresponded to court dates in two separate legal matters facing Liot Hill.

After NHJournal reported on her spending, Liot Hill filed amended reports with the New Hampshire Secretary of State’s Office that removed some of the spending line items, and attempted to explain the two mystery checks.

Liot Hill’s original reports listed two unexplained checks from December 2023 and January 2024 totaling $1,350. The checks did not include any information on who received the money, or the purpose of the expenses.

NHJournal found the timing of the two checks corresponded with two court cases involving Liot Hill. One was a violation for driving with a suspended license, the other involved a debt collection. The amended reports list those checks as reimbursements to Liot Hill for various software subscriptions, as well as cell phone and internet services.

These aren’t Liot Hill’s first legal troubles. The Democrat has been arrested twice for DUI, once in 2010 and again in 2018.

One interesting element about Liot Hill’s campaign disclosures for investigators to review: the sudden change in the status of her campaign treasurer.

The original reports listed former state Rep. Corrine Morse as the campaign treasurer, and appear to bear her signature. But the amended reports, which are significantly different from the first ones, are signed by Liot Hill, who declared herself her campaign’s treasurer.

Filing campaign documents that make false representations, such as who signed them, is a serious violation of state campaign finance laws.

NHJournal contacted Morse in November about her role in the campaign and asked if she had in fact signed the original reports for Liot Hill.

“I can’t comment on that,” Morse told NHJournal at the time.

Morse has not responded since to NHJournal’s multiple calls or emails about the campaign or the investigation.

It’s past time for the public to get the truth about Liot Hill’s finances, says New Hampshire Republican Party Chairman Jim MacEachern, particularly given the financial duties of her position as an Executive Councilor.

“Councilor Hill, who has a history of breaking the law, is now accused of misusing campaign dollars and fraudulent filings,” MacEachern told NHJournal. “It’s alarming that someone like that is empowered to review state contracts and even pardons. I’m happy to hear this is being investigated and trust that justice will be served,” MacEachern said.

Liot Hill’s GOP colleague, Executive Councilor Joe Kenny (R-District 1), learned about the investigation from NHJournal. He declined to comment on Liot Hill’s campaign spending, but he added,  “I hope it’s cleared up very quickly. We have a lot of work to do.”

Executive Councilor John Stephen (R-District 4) echoed that view.

“At the end of the day, we’re going to serve the people of this state who elected us,” Stephen said.

Amid a flurry of proposed budget cuts coming out of the legislature, the council is also navigating the sudden loss of $80 million in federal funding from the Centers for Disease Control. Stephen would not say if he thought Liot Hill being investigated could tarnish the image of the council as the public watches their decisions.

“I’m going to continue my role representing the people of District 4 in the most accountable way possible, with transparency and integrity in everything I do,” Stephen said.

Republican Kim Strathdee, who unsuccessfully ran against Liot Hill for the Executive Council, filed the complaint now under investigation. Strathdee did not respond to a text message seeking comment, and the phone number listed for her is not in service. Strathdee filed her complaint Oct. 7, days after NHJournal broke the story about Liot Hill’s campaign spending habits.

As for Strathdee’s campaign finances, she has a perfect record. While Liot Hill spent close to $120,000 on the contested primary and general election, Strathdee raised no money and spent no money throughout her entire campaign, according to her reports.