Thread: CA Dems give $250,000 to help Perata fight corruption probe

State Democrats give $250,000 to help Perata fight FBI corruption probe
By Josh Richman
Bay Area News Group
Article Launched: 07/09/2008 10:00:32 AM PDT


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John J. Kim-staff 11/15/02 ang news California State Senator Don Perata «1»The California Democratic Party has contributed another $250,000 to state Senate President Pro Tem Don Perata's legal fund, reinvigorating his defense against a years-long FBI corruption probe.
Until last week, the fund had collected only $60,000 in 2008 - $25,000 each from the Pechanga Band of Mission Indians and from San Diego Padres owner John J. Moores, and $10,000 from Manhattan Beach homemaker Jennifer Sizemore. But the Democratic State Central Committee of California followed up its December contribution of $200,000 with another $250,000 last week, records show.

The once-robust fund - buoyed not only by contributions from developers, labor unions and other longtime Perata supporters, but also by transfers from a Perata campaign committee totaling $555,000 since late 2005 - had dipped to a low of $273 in May before the Pechanga Band and the Democratic party ponied up.

Party political consultant Roger Salazar characterized the contribution Tuesday as repayment of the party's debt of gratitude to Perata, D-Oakland.

"One of the reasons that we are successful as a party and have the resources we need to win elections in hotly contested contests is because of the work our leaders do in raising money for those candidates ... and at the same time, when Democrats come under attack, we ought to be there to defend them," Salazar said. "Senator Perata is the Senate President Pro Tem ... and he has been one of the reasons we've been as successful as we have been in winning seats up and down the state."
Some Democrats don't share that view, including bloggers at the liberal Democratic Web site Calitics.com.

"(I)t's an excellent indication that the CDP is interested in protecting their own rather than moving the state forward," Santa Monica activist David Dayen blogged. "How many regional organizers throughout the state for the fall would $250,000 buy? How many pieces of direct mail? How many registration drives? How many door-hangers? How many Google ads going after California Republicans?"

Perata spokesman Jason Kinney declined to comment on the party's contribution except to say it will be used "to pay for legal expenses that were accrued over the last couple of quarters."

"This has been a seemingly endless investigation ... which seems to be going nowhere. However, as long as it continues, Senator Perata will unfortunately and unfairly continue to incur legal expenses," Kinney said.

No charges have been filed since news of the Perata probe broke in November 2004, as businesses and public agencies were subpoenaed for documents related to Perata, his children, his political and business associates and his former aides.

Subpoenas and sources indicated investigators sought to determine whether any of those people or their businesses entities funneled money to Perata illegally; federal agents searched his home and that of his son, Nick, in December 2004, carting away boxes, computers and other items.

Records show the businesses of Perata's son and daughter have been paid hundreds of thousands of dollars by political committees under his direct control, even as Nick Perata and his businesses were involved in real estate rentals and sales with his father.

State Sen. Darrell Steinberg, D-Sacramento, is scheduled to replace Perata at the chamber's helm in August. Perata will be term-limited out of office at 2008's end.

http://www.mercurynews.com/breakingnews/ci_9828090

Perata aid angers some Dems
$250,000 to help with his legal bills should go to 2008 races, they say.
By Shane Goldmacher - sgoldmacher@sacbee.com
Published 12:00 am PDT Wednesday, July 9, 2008
Story appeared in MAIN NEWS section, Page A3

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The California Democratic Party's decision to spend another $250,000 on Senate leader Don Perata's legal bills has angered some party activists, who say the money would be better spent electing Democrats this year.

The Oakland Democrat has racked up nearly $2 million in fees fending off an ongoing FBI corruption investigation in the last four years. With the latest donation, made July 1, the party has now given a total of $450,000 to help cover Perata's legal bills.

"The California Democratic Party is in business to defeat Republicans and elect Democrats," said Rick Jacobs, co-founder of the Courage Campaign, a left-leaning online activist group. "It's not really to keep corrupt politicians out of jail."

Steve Cummings, vice president of the Democratic Club of Ventura County, said that while he had not personally formed an opinion, "People are going to be livid."

Ventura is home to what's expected to be California's most competitive state Senate contest this fall. As such, Cummings said, the area is in line to receive much in the way of state party funds.

But in "plenty of places that are not going to get this type of support … there's going to be a certain amount of resentment," he said.

Roger Salazar, communications director for the party, defended the six-figure support of Perata.

"The California Democratic Party contributes to Democrats, including our leaders," Salazar said.

It is important, he added, that "when the leaders of our party get attacked … the party is there to assist them as well."

The funds transfer is uncommon, though not unprecedented.

When former Secretary of State Kevin Shelley, a Democrat, was forced from office amid scandal in 2005, the party donated nothing to his legal defense fund. In 2004, the party gave $66,000 to the legal fund of Sen. Mike Machado, D-Linden. Machado, however, was not facing a federal investigation.

Still, the size of the party's combined donations to Perata appears to be its largest ever.

Salazar insisted the $450,000 contributed in the past eight months would not hinder Democratic election efforts this fall.

"There is not anything that we are going to be neglecting to have a successful November," Salazar said.

For Perata, the money comes just in time, as his legal fund had a balance of only $273 with $250,000 in unpaid bills, according to a May disclosure.

The years-long FBI probe, launched by a federal grand jury in 2004, has focused on the business dealings of Perata, his family and close associates.

Almost four years ago, FBI agents raided the homes of both Perata and his son, Nick. Investigators later subpoenaed Perata's Senate e-mails over a six-year period, among other documents.

No charges have been filed.

Jason Kinney, a Perata spokesman, said the party's donation is "no indication of anything" changing in the status of the probe.

"As long as this scurrilous and seemingly endless investigation continues to meander, Sen. Perata will unfortunately continue to accrue significant legal expenses," Kinney said.

The lion's share of spending has gone to the law firm Stevens & O'Connell. Perata's lawyer, George O'Connell, is a former U.S. attorney in Sacramento.

Kinney said the spending is for "extensive legal research and analysis."

The breadth of the federal investigation "requires our legal team to look at what they're looking at – which is everything," Kinney said.

Count Candi Easter, the chair of the Kern County Democratic Party, among those who approve of the party footing part of Perata's legal bills.

She said the FBI probe reminded her of "when the Republicans were investigating Clinton for years and years and years."

"This is an attack on our leadership, and that's the party's job, to defend our leadership," Easter said.

But Jacobs remains unconvinced.

His group is trying to air a TV ad lampooning Southern California GOP Rep. David Dreier as a "Bush rubber stamp."

"I'd sure love to have that 250,000 bucks," Jacobs said. "We could do a lot of educating with that."

http://www.sacbee.com/111/story/1069694.html