BISMARCK, N.D. (KFGO) – KFGO has learned that before Wayne Stenehjem’s email account was deleted by a staffer following his death in January, a litigation hold had been placed on the former North Dakota Attorney General’s records regarding his office’s years-long battle with Susan Bala, the owner of a Fargo horse betting business.
“My attorneys did send what is called a litigation hold letter to the state Attorney General’s office in July of 2021. That letter is still there, it’s still in effect. The litigation hold letter is to advise and put on notice the State that we are formally requesting under the law that the records are held and preserved, inclusive of all related records, emails, etc.,” Bala said.
Bala says her attorneys are trying to determine the implications of the email deletion on the case.
“It was a surprise to hear it in the news. I can’t comment on it. The lawyers have to sort through it and understand what that means. For me, it’s been many years of litigation so it was important to us that all the records were preserved, and that’s why we took that measure,” she said.
A federal appeals court upheld a federal bankruptcy judge’s ruling against the Attorney General’s office in a complicated, 17-year-long legal clash with Bala just three weeks before Stenehjem’s death. The three-judge panel said “the bankruptcy court insisted that this marathon litigation must end, and we agree. The time to reach a final adjudication on claims is long overdue.” They confirmed that the State must refund Bala’s business $15.8 million it collected for taxes. The money has been held in a bankruptcy trust estate. Part of the agreement approved by the court required the state to waive any further claims.
Bala was convicted by a jury in 2005 of 12 felonies involving charges of running an illegal gambling business in what prosecutors said was the State’s largest illegal gambling case. She and the business, RSI Holdings, were ordered to forfeit more than $99 million. The forfeiture was later reversed and a federal appeals court overturned the verdict. Bala was released from custody after serving about 17 months.
Current Attorney General Drew Wrigley, who has said that the deletion of Stenehjem’s account was concerning but not illegal, confirmed that the litigation hold was received.
“I have learned that there was a litigation hold put in place about a year ago,” Wrigley said. “Obviously, Wayne was still in office at that time. We’re going to figure out what was done to comply with that and where we’re at as a result of what transpired following my predecessor’s death and before my arrival. We’ll get to the bottom of that and share those circumstances.”
Wrigley said this issue is one of many that have arisen as a result of the deleted emails.
The story gets curiouser and curiouser.