Attorney General Peter Heed resigns amid charges of sexual harassment

Attorney General Peter Heed has resigned and is being investigated for sexual harassment, the governor said Tuesday.

"Both the attorney general and I know there is a way in which you have to conduct your business in the state of New Hampshire," Gov. Craig Benson said. "I do not at all disagree with the attorney general's decision to step down."

Benson said the allegations stem from a conference Heed attended last month on preventing sexual and domestic abuse. Benson said he first heard about the allegations late last week and received Heed's letter Tuesday afternoon.

Deputy Attorney General Kelly Ayotte, whom Benson said will take over for Heed, said the county attorney's office is investigating the allegations. She said the harassment allegation is the first time against Heed since he took office.

"I've worked with Peter for over a year. I have respect for him. It's been a privilege to serve with him," she said. "And I've never seen him act inappropriately."

The conference, held at the Mount Washington Hotel, was organized by the governor's and attorney general's offices. Rochester District Court Judge Franklin Jones was suspended after the conference after several women claimed he groped them.

Heed did not immediately return calls for comment.

Heed was serving his second term as Cheshire County attorney when Benson nominated him to be attorney general in February 2003.

A Republican who graduated from Dartmouth College, Heed worked in the criminal division of the attorney general's office from 1975-80. He left to enter private practice with a Keene law firm.

Ayotte worked for the attorney general's office for five years before being named Benson's legal counsel in January. She returned in March as deputy attorney general.

Early this year, Heed concluded a "volunteer" and friend of Benson, Linda Pepin, took $187,000 in state broker fees improperly while working on a state insurance contract. Heed sued to try to get the money back.

He concluded Pepin violated insurance regulations, but broke no criminal laws in accepting the fees without a broker's license.

Last month, Heed made news when he harshly criticized the No. 2 man in the Catholic church in New Hampshire, accusing him of denying responsibility for his role in the church sexual abuse scandal.

Heed was responding to comments made by the Rev. Francis Christian, who said state prosecutors misrepresented the facts when they announced in 2002 that church leaders had protected sexually abusive priests.

The church and state have disputed who would pay for an audit that was part of an agreement precluding prosecution of the Diocese of Manchester.

"The church has taken the position that the audit we want is too thorough, too comprehensive. It might tell the truth and we don't want that to happen," Heed said sarcastically at the time.

Heed also found himself in the middle of a heated dispute on how the state should pay for public schools, advising Benson and legislative leaders last month that the state law to distribute education aid next year and several competing plans to replace it probably would not survive a court challenge.

Associated Press Writer Beverley Wang contributed to this report.