Donations to Jimmy Hahn's LA City Attorney campaign fund were found to be suspicious - notably donations from the Association of LA City Attorneys (under Hahn's control), the Association of Black City Attorneys, Kuba and Associates, and the House of Blues.
After investigation, and discovery that the Association of LA City Attorneys had falsified it's tax return and was illegally contributing money to its boss' campaign fund, the incident was reported to the Ethics Commission. The response from the ethic's commission was that they were directed by the City Attorney's office to drop the investigation.
The fraud was then reported (July 20, 1998) to the State oversight organization - Fair Political Practices Commission (FPPC). A copy of the Complaint to the FPPC of July 20 and an Addendum dated August 2, 1998 is detailed below along with exhibits that clearly show the fraud that was perpetrated. The status of the case is "In review". (assigned to Shirley Fong, Associate Governmental Program Analyst, Enforcement Division, (916) 322-5660). The detail provisions of enforcement of the Political Reform Act are defined by the Government Title (Section 91000). Call (916) 322-5660 and find out for yourself! News on this
Help! Look at the documents! The corruption literally jumps off the page! The Attorney General (Lundgren) turned this case over to the FPPC. You can call The Fair Political Practices Commission, Enforcement Division, Shirley Fong, (916) 322-5660 and ask about the status of FPPC# 98/262 (Jimmy Hahn). No response since August 1, 1998! By law the FPPC is supposed to respond in 40 days! Are they part of the corruption?
A Tort Claim was filed against the City of LA on 10/8/98. City laws
have been violated and no action is being taken by the City of LA.
4630 New York Ave.
La Crescenta CA 91214
July 20, 1998
To: THE FAIR POLITICAL PRACTICES COMMISSION (FPPC) 428 J. STREET - SUITE 800 - SACRAMENTO CA 95814 TELE: (916) 322-5660
Re: Political Campaign Fraud Committed by City Attorneys Shelley Smith, Jimmy Hahn, the Association of Los Angeles City Attorneys, and the Association of Black City Attorneys.
I am filing this complaint under the jurisdiction of the Political Reform Act, Government Code Section 81000 et seq., as amended in 1974. I am filing against Political Reform Act violators.
JURISDICTION: Jimmy Hahn is a City Attorney as defined under Section 87200 of the Political Reform Act. Shelley Smith and every member of her corporation, the Association of Los Angeles City Attorneys are defined under Section 87200. The Association of Black City Attorneys are all covered under section 87200 - although their identities are fictitious and unknown to this complainant.
1. STATEMENT OF ORGANIZATION: When Jimmy Hahn ran for office he filed a form 410 - Statement of Organization. Jimmy Hahn failed to state his organization includes Shelley Smith's corporation, the California Corporation known as the Association of Los Angeles City Attorneys.
Jimmy Hahn has a hidden controlled committee known to the California Secretary of State Office, and the California Franchise Tax Board, as corporation C1700294.
Type: Domestic Nonprofit
Class: Mutual Benefit
CEO and AGENT: Shelley Smith
Los Angeles City Attorneys
Office 200 N. Main Ste 1800
Los Angeles California 90012
2. Shelley Smith's is a high ranking filer. Her Statement of Economic Interest does not show her corporation -that is listed in California as number C1700294.
3. In 1997, Shelley Smith's corporation used assets to give Jimmy Hahn a $4,000 campaign fund contribution.
Exhibit 1 - is a copy of the corporation
Exhibit 2 - is a copy of the corporation's federal 1024 form stating they give no donations to elect public officials.
Exhibit 3 - is a copy of the corporation's 990 form.
STATEMENT 0F ECONOMIC INTEREST FRAUD:
City Attorney Shelley Smith's Statement of Economic Interest is a Public Record. Shelley Smith's filed 700 form is fraudulent. Shelley Smith did not list her corporation on her form 700. Shelley Smith's corporation uses the L.A. City Hall East to raise capital for political purposes. The corporation uses government office space and supplies. According to her corporation's 1024 form, her treasurer promises that none of the assets of the corporation goes to help elect any public official - this includes not helping or paying Jimmy Hahn.
UNLAWFUL $4,000 CAMPAIGN "DONATION":
However, Shelley Smith gave a $4,000 campaign contribution in to Jimmy Hahn. See Exhibit 4. This is an unlawful donation. The amount also exceeds the allowable limit. Therefore, the donation is an unlawful gift or income. The Articles of Incorporation of the California Corporation have been violated. The corporation is an INDIVIDUAL by law - and has no immunity.
The Shelley Smith corporation has assets of over $300,000 and a yearly income of $100,000. The income draws interest that is funneled to Jimmy Hahn and to lawyers and political lobby employees. The income is reportable. Payola is income.
In 1997, on March 22, 1997, Shelley Smith and her corporation gave a $4,000 dollar campaign contribution to Jimmy Hahn (Exhibit 4.).
This contribution is barred by city law, the amount exceeding the $1,000 dollar limit. Furthermore, the funds were raised through the misappropriation of city property and is not an allowable contribution.
4. In 1998, Shelley Smith's corporation hired an attorney firm to try to block me from obtaining her 1997 990 forms.
Exhibit 5 - is a copy of Shelley Smith's attorney's letter. The attorney excluded Shelley Smith's 1997 990 form from the records of the corporation that was submitted to me. The attempt to block access to the records of 1997 unlawful "donation" is a blatant attempt at concealment of campaign fraud and tax fraud. This matter of concealment is pending.
PAYMENTS TO A LOBBYING FIRM:
5. In 1997, Shelley Smith and her corporation paid $6,000 in employment to a lobbyist known as Darlene Kuba. The employment of Darlene Kuba is not shown on Shelley Smith's 700 form.
Exhibit 6 - is a copy of a city record shoving the L.A. City Attorney Association employed Darlene Kuba.
Darlene Kuba - is employed by Shelley Smith. Kuba uses wages earned from the Smith corporation to donate campaign fund contributions to Rick Tuttle - City Auditor. In turn the Auditor allows the Shelley Smith corporation to use city hall without properly paying for the space and equipment.
Exhibit 7 is a copy of Shelley Smith's employee's donation to Rick Tuttle - City Auditor, City Council Braude and Hahn.
Some of Shelley Smith's members also run another organization called the Association of Black City Attorneys. This is a subset of Shelley Smith's aggregate corporation. Except - this is a racially motivated subset. This black attorney association lists Jimmy Hahn's general office as it's association headquarters.
Exhibit 8 - is a copy of a record of a 1997 $1,000 dollar campaign "contribution" to Jimmy Hahn by the Association of Black City Attorneys.
I went to the California Secretary of State to investigate the black city attorneys. The State has no record of the organization.
Exhibit 9 - is a copy of the Status Inquiry of the Association of Black City Attorneys. The organization does not exist.
The next issue is the aggregate of 300 attorneys who form the L.A. City Attorneys Association AND the Association of Black City Attorneys, et al., are also using city hall to engage in campaign fraud under the name HOUSE of BLUES.
Exhibit 10 - is a copy of the $7,000 plus fund-raising listed under the name House of Blues. This is yet another ploy of using campaign fraud techniques to do in-house fund-raising under fictitious names. The scheme used the Los Angeles City Hall to funnel campaign donations calling it the House of Blues. The funds were collected inside the government building, and the records and accounting must be made available to the public.
I previously brought a form of this complaint to the Los Angeles City Ethics Commission, under a City JURISDICTION. I soon learned the City Ethics Commission is controlled by the Los Angeles County Bar Association -through it's director Richard Walch, and By the Los Angeles City Attorneys Association, through Shelley Smith, Jimmy Hahn, et al.
The investigator admitted to me that she was instructed to stop the the City investigation.
Exhibit 11 - is a copy of the letter
submitted to me by Madeleine Beaumont. Ms. Beaumont's letter says she "will be"
turning the matters of my city complaint over to the California Department of Justice.
However, when I pressed her to disclose, she could not name who she planned to turn the
matter over to. The City code requires the Ethics Commission to determine if campaign
fraud occurred. The attempt to circumvent the fraud by Jimmy Hahn's misdirection is plain
to see, and needs investigation.
THE POLITICAL REFORM ACT LAWS THAT APPLY:
The laws of Government Code Section 87200 apply.
Shelley Smith is the head of an organized union shop corporation who unlawfully laundered $4,000 dollars to Jimmy Hahn, using the power of her government office. The organization is a private capacity employer of Jimmy Hahn and Darlene Kuba. The payment to Jimmy Hahn exceeds the $290 GIFT LIMIT, and is a violation of Section 89503, regulation 18954.
Gifts totaling $290 or more may subject the official to disqualification with respect to one source, Section 87103 (e).
The "donation" and/or payment was forbidden by federal law, which supercedes state law, as seen in Shelley Smith's corporation's 1024 form. The question therefore is whether the payment is income earned because the corporation also uses city hall resources - see Section 89501(b) regulations 18932-18932.3.
Shelley Smith laundered campaign funds to Jimmy Hahn using the assets derived from hidden sources to curry favors. Her employee, Darlene Kuba, then used her Shelley Smith wages to donate to the campaigns of various city officials, including city council members and the city auditor Rick Tuttle Therefore, the application of violations may include Section 89501, regulations 18930-18935.
In any event, the fact is clear. Shelley Smith and company are involved
in unscrupulous manipulation of corporate and government money. Then, to stop exposure,
the corporation uses its corporate power to sway other government officials from
proceeding to investigate. That's how they get away with political campaign fraud. The
only remedy is for the FPPC to step in and force disclosure through prosecution.
(Addendum provided to FPPC on August 2, 1998)
4630 New York Ave.
La Crescenta CA 91214
To: The Fair Political Practices Commission - August 2, 1998
Subject Matter: This is an addendum to the complaint I filed - now marked in your files as number 98/262 - Shelley Smith et al.
Dear FPPC - Enforcement Division:
The matter I reported concerning political graft is emphasized by the next piece of evidence I am supplying.
In Los Angeles city, there is a Campaign Finance Ordinance, LAMC Section 49.7.8 - which prohibits solicitations of contributions from persons who have city business dealings - Also, Section 49.7.9 prohibits the transmittal of campaign contributions in City Hall, City Office Buildings, or City Offices.
The fact is, JAMES HAHN, City Attorney, controls the 18th floor of City Hall East. Under his control, he approved the the Association of Black City Attorneys who donated to JAMES HAHN - from City Hall. The City is obligated to prohibit the donation due to PRA Section 87300 - AGENCY REQUIREMENT.
The city Ethics Commission maintains the records of JAMES HAHN'S Political Campaigns. In the records there is a clear-and unmistakable violation of the campaign laws. I brought this matter to the attention of the City Ethics Commission. The investigator - Madeleine Beaumont - told me she was directed by the City Attorney's Office to not investigate - Madeleine Beaumont was the initial city investigator. To protect herself - after she admitted she was directed to not investigate, she turned the matter over to "Laurie Tabachnik" - Tabachnik invented reasons why she and the city had no jurisdiction. The argument was wholly contrived.
The issue was pursued when I recently filed a public Record Act Request on Ms. Tabachnik. The purpose was aimed to determine if the city had ANY RECORD of ANY ADDRESS that could rebut the fact that the Black City Attorneys has an address IN CITY HALL - the address used for campaigning.
Ms. Tabachnik's letter response is attached herein. The letter dated July 31, 1998 established two main facts: first, Ms. Tabachnik confirms the address of a black attorney donation is city Hall, since there is no other address. Second, Tabachnik admits there is no city investigation.
The Tabachnik letter backs what Madeleine Beaumont told me. JAMES HAHN and his donors have stopped the investigation. This is why we need enforcement by the State. The City Ethics Commission is controlled by the violators of the Political Reform Act - Government Code Section 81000 et seq.
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