The Los Angeles Ethics Commission approved $189,700 in fines for campaign-law violations on Tuesday, with many levied against associates and companies tied to developer Mark Alan Abrams for laundering political contributions.
Some two dozen individuals and businesses with links to Abrams agreed to pay $87,500 in fines for hiding the true source of contributions to the campaigns of Mayor James K. Hahn, Councilman Tony Cardenas and former Councilman Nick Pacheco.
Four of those who agreed to pay fines said Abrams, a Westside developer who is under investigation for alleged fraud, reimbursed them for their political donations.
In a second case, a company founded by developer Alan Casden, a vice president of that company, three subcontractors and 14 associates of the subcontractors agreed to pay $89,500 in fines. Casden Properties Inc. and Vice President John Archibald admitted that Archibald helped one of the subcontractors launder contributions. The subcontractors admitted reimbursing employees and associates for contributions made to former state Controller Kathleen Connell's 2001 mayoral campaign and Jack Weiss' council campaign.
The Ethics Commission approved the fines despite concern from Commission President Gil Garcetti and other members that some of the fines were not enough to penalize conduct that sought to hide the true source of campaign contributions. Some of the employees of subcontractors were fined $1,000 each.
"These are big cases, and yet we are fining them $1,000," Garcetti said. "I'm not sure $1,000 sends the sufficient deterrent message that a higher fine would send."
Ron Turovsky, an attorney for Casden Properties, called the penalties appropriate. Although the firm stipulated that Archibald helped launder money, Turovsky said the evidence is not clear that a violation occurred. "By increasing the fine you will not be recognizing that there has been cooperation," he said.
Alan Casden was not charged and denies any wrongdoing. He sold Casden Properties and its assets two years ago to Apartment Investment and Management Co. in a deal that allowed Casden to acquire stock in that firm.
In the case involving Abrams' business associates, the Ethics Commission concluded that most of the contributions to Hahn and others came from Abrams or investment firms involved with his Beverly Hills-based real estate group.
