Republican vice presidential candidate Alaska Gov. Sarah Palin blows a kiss to supporters after speaking at a rally at the Silver Spurs Arena, in Kissimmee, Fla, Sunday, Oct. 26, 2008. (AP Photo/Joe Burbank, Pool)

Donkey wrong: Sarah Palin is seen wearing a scarf emblazoned with donkeys at a rally in Nevada on Tuesday. The donkey has become the established political symbol for the Democratic Party

Donkey wrong: Sarah Palin is seen wearing a scarf emblazoned with donkeys at a rally in Nevada on Tuesday. The donkey has become the established political symbol for the Democratic Party

Donkey wrong: Sarah Palin is seen wearing a scarf emblazoned with donkeys at a rally in Nevada on Tuesday. The donkey has become the established political symbol for the Democratic Party

Donkey wrong: Sarah Palin is seen wearing a scarf emblazoned with donkeys at a rally in Nevada on Tuesday. The donkey has become the established political symbol for the Democratic Party

Hee haw: Sarah Palin is seen wearing a scarf emblazoned with donkeys at a rally in Nevada. The donkey has become the established political symbol for the Democratic Party

A supporter of Republican vice presidential candidate, Alaska Gov. Sarah Palin holds up a tube of lip stick during a campaign rally in Golden, Colo., Monday, Sept. 15, 2008. (AP Photo/Jack Dempsey)

Republican vice presidential candidate Sarah Palin winks as she speaks during her vice presidential debate against Democratic vice presidential candidate Sen. Joe Biden at Washington University in St. Louis, Thursday, Oct. 2, 2008. (AP Photo/J. Scott Applewhite)

Sarah Palin has become the attack dog for the McCain campaign, with increasingly personal tirades at her rival

Alaska Gov. Sarah Palin speaks as presumptive Republican presidential nominee John McCain looks on at a campaign rally August 29, 2008 in Dayton, Ohio

In this Dec. 4, 2006 file photo, Gov. Sarah Palin, left, her husband Todd, and daughters Bristol,16, right, and Piper, 5, front stand as the colors are retired at the end of an inauguration ceremony in Fairbanks, Alaska Palin, 42, is the first female and youngest governor of Alaska. John McCain tapped little-known Alaska Gov. Sarah Palin to be his vice presidential running mate.

An independent investigator has found evidence that Alaska governor and former Republican vice presidential candidate Sarah Palin, may have broken ethics laws by trading on her position as she sought money for lawyer fees.

It is the latest legal distraction for Mrs Palin as she prepares to leave office this week.

A report obtained by The Associated Press said Mrs Palin was securing unwarranted benefits and receiving improper gifts through the Alaska Fund Trust, set up by supporters.

An investigator for the state Personnel Board says in his July 14 report that there is probable cause to believe Mrs Palin used or attempted to use her official position for personal gain because she authorised the creation of the trust as her legal defence fund.

The practical effect of the ruling on Mrs Palin will be more financial than anything else. The report recommends that she refuses to accept payment from the defence fund, and that the complaint be resolved without a formal hearing before the board. That allows her to resolve the issue without a formal ethics reprimand.

Mrs Palin posted an entry on Twitter in which she said the "matter is still pending", a statement echoed by her lawyer.

The fund aims to help her pay off debts stemming from multiple ethics complaints against her, most of which have been dismissed. Mrs Palin says she owes more than half a million dollars £312,000 in legal fees and said the mounting toll of the ethics probes was one of the reasons she was leaving office on Sunday.

Kristan Cole, the fund's trustee, said organisers had frozen the fund pending the personnel board's review. Politicians are routinely allowed to have such funds to pay off legal bills, but quirks in Alaska law can present ethics issues.

The investigator, Thomas Daniel, sided with Palin in her frustration with having to defend herself against a barrage of ethics complaints. He suggested that Alaska politicians may need to create a law that reimburses public officials for legal expenses to defend complaints that end up being unfounded.

Mrs Palin's friends and supporters created the Alaska Fund Trust in April, limiting donations to £94 per person. Organisers would not say how much it had raised and had hoped to raise about 500,000 dollars. A Webathon last month brought in about 130,000 dollars (£81,200) in pledges.

In his report, Mr Daniel said his interpretation of the ethics act was consistent with common sense.

An ordinary citizen facing legal charges was not likely to be able to generate donations to a legal defence fund, he wrote.

"In contrast, Governor Palin is able to generate donations because of the fact that she is a public official and a public figure. Were it not for the fact that she is governor and a national political figure, it is unlikely that many citizens would donate money to her legal defence fund," he said.

The ethics complaint was filed by Eagle River resident Kim Chatman shortly after the fund was created, alleging Mrs Palin was misusing her official position and accepting improper gifts.

"It's an absolute shame that she would continue to keep the Alaska Fund Trust website up and running," Ms Chatman said.

Belfast Telegraph