The California Fair Political Practices Commission says a burger chain owner accused of repeatedly donating “straw donors” to former Los Angeles County Sheriff Alex Villanueva's 2018 presidential bid has been arrested. He agreed to pay a $50,000 fine on money laundering charges.
The state watchdog agency said in a January filing that investigators found no evidence that Villanueva knew about the money laundering scheme. But commission records show the former sheriff, his 2018 campaign and the campaign's treasurer at the time were charged a total of $7,500 for violating reporting requirements and failing to return some of the money. agreed to pay.
Under the settlement, which the commission will formally vote on later this month, burger chain owner Manuel Gomez will plead guilty to 10 counts of campaign money laundering.
The remaining three parties (Mr. Villanueva, his finance director and his campaign) are likely to plead guilty to two charges related to the failure to report. Lawyers for Gomez and former campaign finance director Sine Ivery did not respond to requests for comment. Villanueva's attorney, Brian Hildreth, said it was “clear” from the language of the agreement that Villanueva had no knowledge of the plan.
An FPPC spokesperson said the commission does not comment on pending cases.if proposed agreement The approval marks the first time since 2017 that the commission has approved multiple campaign finance laundering settlements, according to commission filings.
of Complaint that triggered investigation At this time, Los Angeles County zoning restrictions prohibited individual donors from contributing more than $1,500 to a campaign in a calendar year. The complaint highlighted a small number of donations made by various Tam's Super Burger locations and several cooks and waiters who worked there.
“The fact that multiple hourly employees of Tam's Super Burgers and other affiliated companies contributed up to $1,500 to Villanueva's campaign raises the possibility that the companies may be reimbursing employees for political contributions. “This suggests that employees, including employees, are encouraged to donate to Villanueva,” the unsigned complaint alleged.
In both the original complaint and a similar complaint filed a few days later, the business owner, then a reserve lawmaker and previously a vice president, raised the following concerns: Supporter of former Sheriff Lee Baca — and the Villanueva campaign may have violated the state's political reform law.
Around the same time, The Los Angeles County District Attorney's Office launched an investigation following the complaint. From the campaign of Villanueva's opponent, then-Sheriff Jim McDonnell. Prosecutors said in the indictment after questioning several donors and obtaining warrants for about two dozen bank accounts. memo No evidence was found that the hamburger chain's owner committed a crime. However, some employees told investigators that his boss, Gomez, had asked them to make donations.
Investigators searched Gomez's home in 2019 and found items linked to the Villanueva campaign, but nothing prosecutors considered incriminating. In spring 2022, the District Attorney's Office decided not to prosecute the case. Prosecutors said the statute of limitations had run out on some of the charges and that most of the donors said they were only encouraged to donate and that Mr. Gomez never gave them their money.
However, the state commission continued with the lawsuit. Gomez capped his contributions to Villanueva's campaign in August 2018 at $1,500, according to the settlement, which a commission spokeswoman said was agreed upon by all parties. . Investigators later discovered he made 14 more donations using his employees. He used friends and family as intermediaries or “straw donors” to provide cash.
“Many of the intermediaries did not speak English,” the agreed settlement states. “Some couldn't write in English. Almost all of the donation checks were filled out in Gomez's handwriting.”
Commission records show 14 donations in other people's names totaling $21,000.
Mr. Villanueva's campaign reported Mr. Gomez's initial contributions, but his pre-election campaign statement omitted important information required by law, such as fields for occupation and employer. According to the settlement, that information “helped explain the relationship” between Gomez and the workers who donated to Villanueva.
If donor information is missing, candidates must return donations within 60 days, which Villanueva's campaign failed to do regarding donations from Gomez and one other person.
“Most of the laundered checks were in Gomez's handwriting, and many of the intermediaries who acted as the 'largest' donors were reported in Villanueva's campaign report as a cook and cashier at a hamburger restaurant, as well as a waiter. “Villanueva and Ivery maintain that they had no knowledge that the money was being laundered,” the settlement states. “Consistent with this, the checks were received at a very busy time, when many other donations were being received in the final months before the general election.”
Villanueva reiterated his lack of knowledge about the source of the funding in an email to the Times on Tuesday night.
“Unfortunately, due to the actions of those involved, we too have become victims,” he wrote. “We were disappointed to hear that the prosecutor's office let this case sit for five years because it was not given the opportunity to address administrative errors in a timely manner.”
The agreed-upon settlement is on the agenda for the commission's Jan. 18 meeting, at which time it is expected to be approved by the five-member commission. A commission spokesperson said the proposed fine would have already been paid.
