New Report Raises More Questions About Anti-Bustmante IE Committee
Posted by: Jubal | 08/07/2007 4:57 PM
Back in February, I wrote a few posts (here, here and here) trying resolve the mystery surrounding an independent expenditure committee -- Orange County Healthcare, Education and Neighborhood Leaders PAC -- that sent out this mailer attacking Santa Ana Councilman Carlos Bustamante in the final days of the 1st Supervisor District special election.
I put the issue in my mental tickle file until the latest campaign reports became available and I could try to answer some unanswered questions.
But first some back story:
That the mailer attacked Bustamante for a city council vote that took place before he was elected to the Santa Ana City Council wasn't the source of controversy that attached itself to the mailer -- it was the provenance of the IE committee that paid for it.
The committee started life as the Irvine City, School & Neighborhood Leaders PAC and was formed to help John Duong's campaign for mayor of Irvine in 2006. The Lincoln Club of Orange County provided the bulk of the funding for the committee.
About a week before the 1st Supervisor District special election, the committee's name was changed to Orange County Healthcare, Education and Neighborhood Leaders PAC and the treasurer was switched from OC's Betty Presley to Mrs. Kelly Lawler of Willows, CA. The person who OK'd turning treasurer duties to Mrs. Lawler bound Betty to secrecy.
Funding for the anti-Bustamante mailer (and phone banks) came from donations of $2,000 Garden Grove businessman Mr. Charles Kim and $4,000 from Mr. Tam Lecong aka Nick Lecong, a former Garden grove Planning Commissioner who was active in Janet Nguyen's campaign and is currently a member of her supervisor staff. Mr. Kim told me in February that Lecong asked him to donate to the PAC.
I called Nick Lecong at that same time to ask if he was the person behind the mailer/phone banks, and if not, then who asked him to donate $4,000. He literally began coughing into the phone, then hung up and refused to answer my subsequent phone calls.
Now, this creates an interesting situation vis-a-vis county government. Supervisor Janet Nguyen is now Carlos Bustamante's boss (Carlos is Assistant Director, Planning & Development Services for the County of Orange), but one of Janet's executive assistants (Lecong) helped fund a dishonest hit piece on Carlos. Politics can create some strange situations.
Back to the whole business with this IE, which was hinky on several levels. For one thing, the only contributions were the $6,000 from Lecong and Kim, yet the committee spent twice that much on mail and phone banks. But treasurer Kelly Lawler -- who also refused to return several phone calls -- wasn't required to file a comprehensive report until June 30, so my investigation was temporarily at a dead end.
Well, I got a hold of that report on Friday.
I assumed the report would show additional donors making up the large gap between the committee's expenditures and contributions.
No such luck. The report just raises more questions.
Nick Lecong and Charles Kim are still the only donors. Their $6,000 -- combined with the $2,690.47 left from its previous incarnation -- paid for 1749.04 in phone banking, $10,966 for the mailer, plus payments to the treasurer, etc.
But the strangest thing about the report is Schedule F: unpaid bills. The report states that as of June 30, printer -- United Press Works of Riverside -- is owed $5,894.99.
The committee also reports an ending cash balance of ZERO. That means the committee no longer has a bank account, since banks don't let you maintain bank accounts with no money.
Translation: the Orange County Healthcare, Education and Neighborhood Leaders PAC is going to stiff United press Works fro nearly $6,000.
I wondered if United Press Works knew that, so I called owner Tracy Carrell at the end of the day on Friday. I introduced myself, explained why I was calling and asked her if the committee did indeed owe her almost $6,000. Carrell said she didn't recall being owed any money. Ms. Carrell then said she was at dinner with her family and that I should fax her any material I wanted to talk to her about and follow up with a phone call.
On Monday evening, I faxed her the mailer and the pertinent pages from the campaign report, along with a note asking if who asked her company to print and mail the mail piece, and whether it was true the committee owed her company nearly $6,000?
I spoke to Tracy Carrell earlier this afternoon. She refused to answer any of my questions or to discuss the mailer or her business with the IE committee with me.
Now, it's possible Ms. Carrell doesn't care if the IE committee is going to stiff her $6,000 -- which would be unlike any printer I know, since it's a low-margin business.
Then again, Tracy Carrell's initial response was she wasn't owed any money, which tells me that $6,000 debt was paid -- just not by the Orange County Healthcare, Education and Neighborhood Leaders PAC. Which would be a campaign violation.
Either way, this IE committee's involvement in the 1st Supervisor District has been hinky from beginning to end.
Mr. Ayer registered as a Republican to be electable in an interim election with no incumbents. He did...
Wherever Janet goes, hinkyness seems to follow...
I can't believe the Lincoln Club and New Majority types would give Janet a dime for re-election when all she does is embarress the party.
Time for Trung Nguyen to make a few phone calls and give the GOP an alternative to a Supervisor who overspends on furniture, lie about most of her contributions and checks with Lou Correa before making commission appointments.
Citizenship journalism at work.
Since several print journalists follow your blog, there's little chance of your efforts being ignored should you uncover the fire generating all this smoke.
Keep up the GREAT WORK, Jubal.
Is this the same IE PAC that the Lincoln club members were pissed off about because it had some of their money left in the coffers and it was used against Carlos? It was all very curious then and gets more so now...I wonder who is behind it. It makes campaign reporting kind of seem insignificant if we the public are not even able to see the "real" reports. I mean why do committees even need to obey campaign laws and proper reporting laws if this committee and the person behind it can get away with decieving the voters. Seems there is someone behind it that REALLY wants to remain anonymous and hide. I wonder what they have to lose?
What a waste of money by whoever paid for the mailer because Bustamonte never had a chance!
The point here is not about wasting the Lincoln Club's money, which Janet did, the point here is Janet through her staff, Nick Lecong, did something very shady, and probably illegal.
Furthermore, if United Press Works of Riverside is not complaining about being stiff with nearly $6,000 then there's a strong possibility that they have been paid already, either in cash or by another individual. Either way, that is illegal because the law required such a payment be reported.
It looks like Janet, through Nick Lecong, once again broke the law.
I cannot believe Janet Nguyen even had the audacity to seek the Lincoln Club's endorsement last month after she used their money to attack their candidate.
Forget Janet-- that's not the main point.
More important is the person who fired Betty Presley and installed his own treasurer. Who did that? If if was the person who ran the original I.E., then the problem is that person was involved in Janet's campaign AND involved in an I.E. on her behalf (the re-named committee), a blatant violation.
That person is a political insider, everyone knows who he is and he has basically told everyone to pound on this topic. He could clear this whole thing up, but his continued silence raises many questions/suspicions.
Why doesn't that person just clear this up?
Focus on the person who ran the original I.E. committee, everyone, and you likely have your story.
Real Story - Actually I like the Janet angle....but I think for a change it was not her (although I could be wrong). He would have to be someone very political who probably knew better. Hmmmm - WHO COULD IT BE? lol.
Hey Jubal, can you check to see if Adam Probolsky was the original controlling officer of this IE? I'm not sure if he was or not.
And why does Betty Presley get a pass? The person who put together this I.E. scam "swore her to secrecy?" Sorry, lady, that makes you part of the problem.
What a joke. The cronyism in this town is ridiculous.
One other possible explanation for United Press Works: they never did get paid, but simply said they did.
Wouldn't that be an in-kind donation of some sort on their part, one that should have been reported? Just a thought.
Betty is the most upstanding person on this planet...do not even go there!
Flowerszzz-- Please. The folks involved in this mess just want to sweep it under the rug and hope it goes away. Sorry, but while the person who switched treasurers shouldn't have put her in this position, Betty's now part of the whole thing by concealing the identity of someone who likely violated campaign finance laws.
The silence is deafening.
There is nothing new here. I.E. spending has always been a Who Dunnit during and after elections and this race is nothing new. It's a fun way to try to throw some dirt at a candidate you don't like but lots of those crying about this one have been involved one way or another in other I.E.'s that have raised questions as to sources of funds and actual spending. Don't burn too many brain cells or keyboard strokes on this one.
Most likely, the printer has been paid for her work, which is close to $6,000. The printer's original affirmation to Jubal verifies this fact.
Track down the missing, or the secret, money, and you will find the donors and the violation. Don't be surprised if the donors' names are ID'd and that they are the ones closest to Janet Nguyen. Then an obvious question would be, "when does she know about this IE and how much (no pun intended) does she know it?"
This may be a serious compound violation of elections laws.
With all due respect...while I think the IE and the events leading to the IE are definately shady....Betty is not the cause nor is she obligated to tell Jubal or anyone anything.
And still not a peep about the "free" legal services being given to Trung by Schroder.
Hey Jubal ~ How about accumulating all of your information and shooting it over to the FPPC?
Maybe the printer or Betty will open up if they're threatened by an FPPC investigation? Betty has been treasurer of more than one campgain that was fined.
(See http://www.fppc.ca.gov/index.html?id=48&show=detail&prid=605 , http://www.fppc.ca.gov/index.html?id=48&show=detail&prid=427 , http://www.fppc.ca.gov/index.html?id=63&show=detail&msid=180 , and http://www.fppc.ca.gov/index.html?id=426 )
Schedule G, payments made by subcontractors shows payment made by UPW of $2400 for postage.
Printers hurt when they are stiffed on printing because Jubal is right, it is a low margin business.
But printers really hurt when they get stiffed for postage. That is a zero margin business.
Maybe the printer or Betty will open up if they're threatened by an FPPC investigation?
Betty isn't the one who needs to open up. Kelly Lawler and Nick Lecong are the ones who need to open up.
What did Adam Probolsky know and when did he know it?
"The Real Story" at 9:58PM is correct. Only a political insider could have arranged all the backroom dealing.
Only a political insider that is known to be a hired gun to the highest bidder; thereby allowing him to be all over O.C. working for various groups with different goals, would be able to "move" money from Irvine to Santa Ana in an effort to benefit his next client.
Only a political insider who has openly stated on the record at central committee meetings and endorsement committee meetings, "There is no such thing as a conflict of interest in politics," would try to pull off such an unethical, illegal activity as Jubal has so capably exposed.
That political insider is none other than ADAM PROBOLSKY!!! He IS the trigger man AND he ordered "The hit." Reputation, motivation, smoking gun, fingerprints, profile, countless clues - all point to Adam Probolsky.
The sad part? Since he's Baugh's and Carona's "kind of guy," there will be no action taken within the Party unless it's brought forth from committee members through the ethics committee - which will then be illegally referred to the endorsement committee to be heard so that the outcome can be guaranteed by Baugh on behalf of his henchman, Probolsky.
What a sad joke the lot of them are...
The FPPC is our only chance for any accountability here.
This can be cleared up relatively simply. Any registered voter in Orange County has standing to hire an attorney and sue the committee. Then, Presley, Lawler, Lecong and United Press Works can be subpoenaed and compelled to talk.
Anyone up to the task?
Betty is no longer the treasurer...so the FPPC would not even bother her about this.
This thread is incomplete without a comment from the vacationing Art Pedroza, who'd probably comment:
"Who cares? This is old news! What about Van Tran and Mike Carona? How much is Van Tran paying you?
Flowerszz:
"Betty is no longer the treasurer...so the FPPC would not even bother her about this?"
Surely you jest.
Betty is a wonderful human being and a fine American. However, if she has any information, which presumably she does, the authorities would want to talk to her. She is not insulated from interrogation simply because she is a FORMER treasurer of the committee.
Lawerly Advice, I agree with Adam is the trigger man. Since we know the OCGOP with its current inept, self-serving leadership wont' do anything, isn't the County DA compelled to investigate the wrong doing of Probolsky in this case, if asked to do so?
It's so obvious Probolsky is the one behind the IE. There's got to be some sort of penalty or fine for this executive board member of the OCGOP. What do you suggest(Or any other lawyer out there familiar with campaign laws/disclosures)?
By the way, great investigative reporting, Jubal!!!
OWK - absolutely but they could also ask the new treasurer who asked her to do the books as well. LOL...I doubt it would be an interrogation though. And yes Betty is the best and at least you all know if you hire her she keeps your stuff confidential! :-P
Bart - and they are censoring/not posting comments over at Art's blog, inhis absence. I have "posted" a few comments and none have gone up.
This whole IE thing really stinks to high heaven. Nick LeCong is a major player in this whole can of worms.
The investigators ought to give this "pay-to-play poster boy" a visit. This guy is a donor to an IE and a behind-the-scene string-puller in Janet Nguyen's campaign.
Flowerszzz,
I am back and no, we are not censoring posts at the Orange Juice! blog. We moderate our posts, due to an insane local named Stanley Fiala. He likes to post long diatribes that make liberal use of the "F" word, so we have to moderate the posts in order to delete what he tries to put up.
The only posts we delete with any regularity are those that are personal attacks and those that go after our respective families, as well as those that use profanity.
It has been hard for my co-bloggers to keep up with post moderation in my absence. Also, apparently Claudio used a computer at a Kinkos and did not log out. A prankster deleted a number of posts for no reason.
All that aside, this information that Matt dug up is interesting. It does appear that something weird went on with this account. I also wonder how much Mr. Probolsky knows? Isn't he a blogger here at Red County? Maybe Matt can find a way to interview him.
I don't think however that the mailers funded by this account were the reason that Carlos Bustamante lost. He lost because he is lame. I said from the beginning that he would lose big, and he did. He will be lucky to be reelected to the SA City Council next year.
I realize that the OC GOP machine invested a lot of energy and money into hyping Carlos, but the guys is a stiff. He has no political future to speak of and the sooner the OC GOP figures that out, the better for them.
Just look at what happened while I was on vacation. Bustamante tried to pass an ordinance banning handbill delivery to SA residents. What a waste of time! He got slapped down by his peers on the Council and that was the end of that.
Bustamante would have been a totally disastrous Supervisor.
"It's so obvious Probolsky is the one behind the IE. There's got to be some sort of penalty or fine for this executive board member of the OCGOP."
Well, maybe there is. Looks like Adam P. is being appointed to the County Waste Management Commission!
"Bustamante tried to pass an ordinance banning handbill delivery to SA residents"
Nope.
Bustamante was just being used by Pulido and City Attorney Fletcher to create a diversion that would allow them to pass the term limit measure that suits them.
Art - he could not have been much worse a supervisor then the one there have now....that being said he was not my horse in the race anyway. As far as your site....I made several comments and none of them appeared and I did not attack anyone personally nor did I use profanity.