According to the reports, an independent counsel has found a legal defense fund for former Alaska Gov. Sarah Palin provided "private financial benefit" for her in violation of state law.

The Anchorage Daily News reported on Thursday Anchorage, Alaska, attorney Tim Petumenos said Palin, whose supporters established the fund to help her pay legal bills in an investigation of several ethics complaints against her, has agreed to return $386,856 donated to the trust prior to her resignation as governor last year.

The newspaper also reported that Petumenos said Palin personally gained from the defense fund's use of her official position as governor in appealing for donations. He also concluded that Kristen Cole, the fund's trustee, provided "substantial private benefit" to Palin, although Cole was a public official.

Cole had been appointed by Palin to head several state boards, including the royalty oil and gas advisory board.

According to Petumenos, Palin acted in good faith and relied on legal advice in establishing the defense fund. However, he concluded the fund improperly featured the word "official" on its Web site, giving the impression Palin, as governor, endorsed it.

It was unclear whether the fund would continue, a lawyer for Palin said on Thursday but the Daily News said another fund was set up Thursday and was soliciting funds for Palin's legal defense. (With Inputs from Agencies)