Are you sure about that? My recollection is that the GOP controlled both chambers. French was on a committee to look into Troopergate but I don't recall him being the president of the Senate.
The article you referred me to says:
Investigator Timothy Petumenos said the Alaska Fund Trust inappropriately used the word "official" on its website to describe it, wrongly implying Palin's endorsement as governor.
It sounds like the fund might have been legal if organized differently.
Palin allies launch new legal defense fund, citing 'witch hunt'
The Cost of Legal Warfare A Few Words About Todays Defense Fund Agreement
"One might think that creating a trust fund to collect money to pay legal fees should not be that complicated, but it turns out, it is exceptionally complicated. You should know that as many as seven lawyers were involved in the process; some of whom were and are nationally prominent experts in creating legal defense funds, in evaluating federal and state election laws, state trust law, federal and state tax laws, state reporting requirements and state ethics requirements. It is a sad commentary on public life today when the legal system can be used as a political weapon against an elected official, and it takes a battalion of lawyers to figure out how to fund a defense and counter-attack."