The Arkansas Scholarship Lottery has fired its chief legal counsel, Michael Helms, who had worked at the agency since August 2016.
Helms and the lottery's records confirm that he was terminated Dec. 4.
"The reason that was given was my services were no longer needed and that's all that was said" by lottery Director Eric Hagler, Helms said in an interview this week.
Helms received a pay raise from $112,386 a year to $115,364 on July 1, said state Department of Finance and Administration spokesman Scott Hardin.
Hagler started work as director on Aug. 6. His predecessor, Bishop Woosley, resigned effective Aug. 3 to pursue other opportunities.
Helms' personnel file -- released by the Department of Finance and Administration on Thursday in response to this newspaper's request under the Arkansas Freedom of Information Act -- doesn't specify a reason for Helms' termination. The lottery is part of the finance department.
Hardin said Friday that any records that form a basis for the decision to suspend or terminate an employee are not disclosable under the public information law.
"The records remain exempt pending a final administrative resolution of any suspension or termination proceeding in which the records form a basis for the decision to terminate," Hardin said in a written statement.
"Mr. Helms has indicated he intends to request the opportunity to grieve his termination and that decision is not yet final. ... The request for a grievance must be made within 5 business days from the date of termination. By close of business Monday (December 14), the termination documentation may be released unless he requests a grievance."
Helms said Friday that he is considering filing a grievance.
He said he enjoyed his time at the lottery and brief stint as interim director following Woosley's resignation.
"Until recently, it was my second family," he said.
CAMELOT CONTRACT
Helms was among some lottery officials who had raised questions this year to Woosley about the agency extending its contract with consultant Camelot Global Services, based on lottery records obtained by this newspaper under the Freedom of Information Act.
"I do not believe that we need them at all and should terminate their contract in accord with the notice of non-renewal we have previously sent, ending our relationship with them on June 30, 2020," Helms said in an email to Woosley dated March 20.
"As it stands today, there would be no 'conversion style' headaches from the termination," Helms wrote. "From day one (although I was not here for day one) they have consistently failed to deliver what they propose and claim to be able to accomplish (although they readily take credit for where the lottery has grown to date). It is all motion."
Helms said he doesn't have any way of knowing whether his concerns about the Camelot Global Services' contract extension played a role in his termination.
Hardin said Helms' concerns about the Camelot extension didn't factor into his termination.
"This was totally unrelated to the termination," he said.
Hardin said the lottery's legal counsel did not have direct involvement with Camelot.
The finance department continually evaluates the benefit of all contracts to ensure performance standards and expectations are met, he said.
In June, the Legislative Council signed off on a contract extension for Camelot Global Services that started July 1 and runs through June 30, 2022.
In November 2015, state officials initially signed a contract with Camelot through June 30 of this year, with options for two one-year extensions, to help develop and implement a business plan for the lottery. The contract was signed several months after Gov. Asa Hutchinson and the Legislature put the lottery under the control of the finance department and eliminated the nine-member Arkansas Lottery Commission.
Camelot "has been a good partner," Woosley told lawmakers in June. "The gist of this [contract extension] is we continue to have pretty much the same relationship at a reduced cost, and most of that reduced cost is based on our education over the last five years."
Camelot has been paid a total of $16 million by the lottery, including $13.5 million in incentive compensation, $2.3 million in base compensation and $142,303 in travel expenses, Hardin said. Camelot has two employees at the lottery's office -- John Skrimshire and Andrew Cassell -- he said.
Woosley said in June the lottery continues to provide base compensation of up to $650,000 a year to Camelot, but he didn't expect to have to use the consulting firm's services that much. The lottery also no longer pays for Camelot's travel.
For fiscal 2021 that started July 1, Camelot will receive 11.75% of all net operating income between $78.2 million and $88.03 million and 20% of any amount above that. Woosley projected net proceeds of $78.2 million for college scholarships in fiscal 2021.
The contract extension includes a provision to allow the lottery or Camelot to terminate the extension at any time and for any reason with 30 days' notice to the other party with no financial penalties.
On May 2, 2016, Woosley expressed some skepticism about Camelot's plans to boost the number of retailers selling tickets.
He was puzzled about how the consultant would help the lottery accomplish a goal of signing up 100 new retailers in May and June of 2016, so he wrote to a Camelot official, "What is the secret sauce you have to get this done?"
Camelot's initial five-year business plan called for the lottery to add 60o retailers over a five-year period. The lottery had arrangements with 1,904 retailers as of the end of April 2016, which was roughly consistent with what the lottery had during the previous seven fiscal years.
The lottery reported Thursday it had 1,962 retailers at the end of November.
In September 2014, the Legislative Council voted to hire Camelot Global Services to review the lottery's operations and make recommendations to improve it, without taking bids, at the request of Sen. Jimmy Hickey, R-Texarkana. Camelot subsequently received $169,500 from the Bureau of Legislative Services for its work.
According to lobbyist registration records at the secretary of state's office, Camelot is represented by the Capitol Advisors Group, which includes Bill Vickery, Mitchell Lowe, former Rep. John Burris, R-Harrison, and Nicole Gillum.
HELMS' REPLACEMENT
With Helms' termination, Hagler is a licensed attorney in Arkansas and will work closely with the lead attorney for the finance department along with Shared Services "if needed to address any legal issues," Hardin said.
"We anticipate the position will be filled," he said.
Before starting work at the lottery in August 2016, Helms had been the Workers' Compensation Commission's assistant chief executive officer since April 2015, according to his resume released when he was hired.
He was a staff attorney at the Arkansas Securities Department from September 2014-April 2015 and operated his own general legal practice in Little Rock from April 2005-September 2014, his resume states. He also was a public defender in youth cases and a conflicts attorney for the Arkansas Public Defender Commission from July 2005-September 2014.
Helms was managing partner of the Moore, Serio, Bishop & Helms law firm in Clarendon from November 2000-April 2005, Clarendon city attorney from January 2002-December 2006, and operated his own general legal practice in Little Rock from March 1998-November 2000.
"Mike's resume stood out," Woosley said in 2016 in response to a question about why he was hired.
"He has strong experience in a variety of legal backgrounds, not just governmental, but also a city attorney and in private practice. This is an excellent background for the chief legal counsel of the OAL [Office of Arkansas Lottery], who needs a wide array of knowledge to handle the issues that we face on a day to day basis," Woosley said at the time. "He also interviewed well, and I am confident he will be a great fit for this position."