FPPC Enforcement Decisions, May 21, 2020

FOR IMMEDIATE RELEASE                            

May 21, 2020

For More Information Contact:

Jay Wierenga (916) 322-7761

.pdf version of news release

Additional information on each of the enforcement cases listed below can be found in the May agenda on the FPPC website at www.fppc.ca.gov. FPPC agendas are distributed and posted on the agency website at least 10 days prior to each monthly meeting.

The web version of the agenda includes links to the stipulations agreed to between the FPPC Enforcement Division and the individuals and organizations subject to the fines, or the default decisions proposed to the Commission. Exhibits in support of the stipulations and proposed default decisions are also available on the website. If you or need further assistance, please contact the FPPC communications office at (916) 322-7761 or press@fppc.ca.gov.

I. The following are enforcement decisions approved by the Fair Political Practices Commission at its regular monthly meeting held on Thursday, May 21, 2020. Decisions are listed by category and include a brief summary of each case and the total amount of any administrative fine in each case.

Campaign Related Communications at Public Expense

In the Matter of Mesa Water District; FPPC No. 16/19813. Staff: Ruth Yang, Commission Counsel and Paul Rasey, Special Investigator. The respondent was represented by Patrick Munoz and Jennifer Farrell of Rutan & Tucker, LLP. The Mesa Water District provides water to Costa Mesa, parts of Newport Beach, and some unincorporated areas, in Orange County. The District sent prohibited campaign related mass mailings at the public’s expense, in violation of Government Code Section 89001 and Regulation 18901.1 (1 count). The District also failed to include the proper disclosure statements in newspaper advertisements, in violation of Government Code Sections 84506, subdivision (a)(1), 84507, and Regulation 18450.4, subdivision (b) (1 count); failed to timely file 24-Hour Reports, in violation of Government Code Section 84204 (1 count); and failed to timely file a semiannual campaign statement, in violation of Government Code Section 84200, subdivision (b) (1 count). Fine: $14,500.

In the Matter of City of Upland; FPPC No. 18/228. Staff: Ruth Yang, Commission Counsel and Marshall Miller, former Special Investigator. City of Upland is represented by Steven L. Flower of Richards, Watson & Gershon. The City of Upland produced and distributed over 200 copies of a letter which included the name, photograph, title, and other references to an elected officer at the public’s expense, in violation of Government Code Sections 89001 and 89002, subdivision (a) (1 count). Fine: $2,000.

Misuse of Campaign Funds and Recordkeeping

In the Matter of San Francisco Bay Area Renters Political Action Committee, and Sonja Trauss, FPPC No. 15/1635. Staff: Megan A. Van Arsdale, Commission Counsel and Bob Perna, Program Specialist II. San Francisco Bay Area Renters Political Action Committee was a state general purpose committee. Sonja Trauss was the Committee’s treasurer and principal officer. The Committee and Trauss failed to maintain adequate records for expenditures, in violation of Government Code Section 84104 and Regulation 18401 (1 count); commingled contributions received by the Committee with the personal funds of Trauss, in violation of Government Code Section 84307 (1 count); and failed to disclose contributions and to disclose correct amounts for expenditures on a semiannual campaign statement, in violation of Government Code Section 84211, subdivisions (a)- (d), (f), and (k) (1 count). Fine: $9,500.

Recordkeeping

In the Matter of Committee to Elect Jim Smith, Superior Court Judge, Seat #3 2014, James S. Smith, and Michael Arzaga; FPPC No. 17/076. Staff: Megan A. Van Arsdale, Commission Counsel and Luz Bonetti, Supervising Management Auditor. This matter arose from an audit performed by the Franchise Tax Board’s Political Reform Audit Program. James (Jim) S. Smith was an unsuccessful candidate for Superior Court Judge in the June 3, 2014 Primary Election. Committee to Elect Jim Smith, Superior Court Judge, Seat #3 2014 was his candidate-controlled committee. Michael Arzaga was the Committee’s treasurer. The Committee, Smith, and Arzaga failed to maintain adequate records necessary to prepare campaign statements in 2014, in violation of Government Code Section 84104 and Regulation 18401 (1 count); failed to timely file eight 24-Hour Reports, in violation of Government Code Section 84203 (1 count); and improperly accepted cash contributions of $100 or more, in violation of Government Code Section 84300 (1 count). Fine: $6,500.

Prohibited Cash Contributions

In the Matter of Yes on Measure LV Residocracy and Armen Melkonians, Patricia Crane and Armen Melkonians; FPPC No. 16/19836. Staff: Bridgette Castillo, Senior Commission Counsel. Armen Melkonians was an unsuccessful candidate for Santa Monica City Council in the November 8, 2016 General Election. Yes on Measure LV Residocracy and Armen Melkonians was a primarily formed ballot measure committee to support Measure LV in the same election. Patricia Crane was the Committee’s assistant treasurer and acted as treasurer until October 31, 2016. Melkonians became treasurer after that. The Committee and Crane impermissibly accepted two prohibited cash contributions, in violation of Government Code Section 84300, subdivision (c) (1 count). Additionally, the Committee and Melkonians failed to timely file a semiannual campaign statement, in violation of Government Code Section 84200 (1 count). Fine: $3,500.

Campaign Late Filer

In the Matter of Transparent Silicon Valley and Victor Gomez; FPPC No. 18/1145. Staff: Jenna C. Rinehart, Commission Counsel. Transparent Silicon Valley is a state general purpose committee. Victor Gomez was the Committee’s treasurer. Prior to the June 5, 2018 Primary Election, the Committee and Gomez failed to timely file two pre-election campaign statements, in violation of Government Code Section 84200.5, subdivision (c) (1 count) and four 24-Hour Reports, in violation of Government Code Sections 84203 and 84204 (1 count). Prior to the November 6, 2018 General Election, the Committee and Gomez failed to timely file two pre-election campaign statements, in violation of Government Code Section 84200.5, subdivision (c) (1 count) and four 24-Hour Reports, in violation of Government Code Sections 84203 and 84204 (1 count). Fine: $9,000.

In the Matter of L. Pacheco for VCWD B-Member 2013, L. Pacheco 4 Valley County Water District 2018, Lenet Pacheco, and Ricardo Pacheco; FPPC No. 18/1045. Staff: Jenna C. Rinehart, Commission Counsel. Lenet Pacheco was a successful candidate for Board Member of Valley County Water District in the November 5, 2013 and November 6, 2018 General Elections. L. Pacheco for VCWD B-Member 2013 and L. Pacheco 4 Valley County Water District 2018 are her candidate-controlled committees. Ricardo Pacheco served as treasurer for both committees. The 2013 Committee, Pacheco, and Pacheco failed to timely file five semiannual campaign statements, in violation of Government Code Section 84200 (1 count). The 2018 Committee, Pacheco, and Pacheco failed to timely file three semiannual campaign statements, in violation of Government Code Section 84200 (1 count); failed to timely file two pre-election campaign statements, in violation of Government Code Sections 84200.5 and 84200.8 (1 count); and failed to timely file six 24-Hour Reports prior to the November 6, 2018 General Election, in violation of Government Code Section 84203 (1 count). Fine: $9,000.

In the Matter of Laure L. Woods; FPPC No. 18/1006. Staff: Ruth Yang, Commission Counsel and Marshall Miller, former Special Investigator. Laure L. Woods is represented by Laura Stephen of Stephen Company. Woods is a clinical researcher and philanthropist. Woods failed to timely file a major donor campaign statement, in violation of Government Code Section 84200, subdivision (b) (1 count), and failed to timely file a 24-Hour Report, in violation of Government Code Section 84203 (1 count). Fine: $3,500.

In the Matter of Local 18 Water & Power Defense League (IBEW) and Brian D’Arcy; FPPC No. 19/1508. Staff: Megan A. Van Arsdale, Commission Counsel. This matter arose from an audit performed by the Franchise Tax Board’s Political Reform Audit Program. The respondents were represented by Stephen Kaufman of the Kaufman Legal Group. Local 18 Water & Power Defense League (IBEW) is a state general purpose committee sponsored by the International Brotherhood of Electrical Workers Local 18. Brian D’Acry was the Committee’s treasurer at the time these violations occurred. The Committee and D’Arcy failed to timely file two 24-Hour Reports, in violation of Government Code Section 84203 (1 count). Fine: $3,000.

Statement of Economic Interests Late Filer

In the Matter of Terry Smith; FPPC No. 19/791. Staff: Jenna C. Rinehart, Commission Counsel. Terry Smith, a Governing Board Member for the Grenada Irrigation District in Siskiyou County, failed to timely file a 2017 and 2018 Annual Statement of Economic Interests, in violation of Government Code Section 87300 (2 counts). Fine: $3,000.

II. The following are enforcement decisions approved through the streamline penalty process and were executed by the Chief of Enforcement per Regulation 18360.2 following the May 21, 2020 meeting. Decisions are listed by category and include a brief summary of each case and the total amount of any administrative fine in each case.

Advertisements

In the Matter of Long Beach Reform Coalition PAC, a committee to oppose Measure BBB, David L. Gould, and Ian Patton; FPPC No. 19/217. Staff: Christopher Burton, Senior Commission Counsel and Garrett Micheels, Special Investigator. Long Beach Reform Coalition PAC, a committee to oppose Measure BBB is a committee primarily formed to oppose Long Beach Measure BBB, which appeared on the ballot in the November 6, 2018 General Election. David L. Gould is the Committee’s treasurer, and Ian Patton is the Committee’s principal officer. The Committee and Patton failed to include the correct disclosures on two different advertisements, in violation of Government Code Section 84504.2 (2 counts). Additionally, the Committee, Gould, and Patton failed to timely file four 24-Hour Reports, in violation of Government Code Section 84203 (4 counts). Fine: $1,533.

In the Matter of Yes on Measure PV – Safer Schools for Our PVP Kids and Howard Edelson; FPPC No. 20/352. Staff: Galena West, Chief of Enforcement and Dominika Wojenska, Associate Governmental Program Analyst. The respondents were represented by Beverly Grossman Palmer of Strumwasser & Woocher LLP. Yes on Measure PV – Safer Schools for Our PVP Kids is a local primarily formed committee. Howard Edelson is the Committee’s principal officer. The Committee and Edelson failed to include the proper advertisement disclosure on a mailer, newspaper ad, and yard signs paid for by the Committee prior to the March 3, 2020 Primary Election, in violation of Government Code Section 84504.2 (4 counts). Fine: $560.

In the Matter of Joy McCreary for GUSD School Board, District A 2020 and Joy McCreary, FPPC No. 20/247. Staff: Galena West, Chief of Enforcement and Tara Stock, Intake Manager. Joy McCreary was an unsuccessful candidate for Glendale Unified School District Board in the March 3, 2020 Primary Election. Joy McCreary for GUSD School Board, District A 2020 was her candidate-controlled committee. The Committee and McCreary failed to include the proper advertisement disclosures in a mass mailing distributed prior to the election, in violation of Government Code Section 84305 (1 count). Fine: $102.

Campaign Late Filer

In the Matter of Ken Hara for Judge 2020 and Kenneth Hara; FPPC No. 20/242. Staff: Jenna C. Rinehart, Commission Counsel. Kenneth Hara was a successful candidate for Stanislaus County Superior Court Judge Office 5 in the March 3, 2020 Primary Election. Ken Hara for Judge 2020 is his candidate-controlled committee. The Committee and Hara failed to timely disclose when the Committee qualified as a committee on its statement of organization, in violation of Government Code Section 84103 (1 count); failed to timely file two pre-election campaign statements, in violation of Government Code Section 84200.5 (2 counts); and failed to timely file two 24-Hour Reports prior to the election, in violation of Government Code Section 84203 (2 counts). Fine: $2,070.

In the Matter of Carlton for Menlo Park City Council 2016, Catherine Carlton, and Anil Advani; FPPC No. 19/1231. Staff: Galena West, Chief of Enforcement and Dominika Wojenska, Associate Governmental Program Analyst. Catherine Carlton was a successful candidate for Menlo Park City Council in the November 8, 2016 General Election. Carlton for Menlo Park City Council 2016 is her candidate-controlled committee. Anil Advani is the Committee’s treasurer. The Committee, Carlton, and Advani failed to timely file four semiannual campaign statements, in violation of Government Code Section 84200 (4 counts). Fine: $800.

In the Matter of John Marquez for CCC College Board 2018 and John Marquez; FPPC No. 19/564. Staff: Galena West, Chief of Enforcement and Ginny Lambing, Political Reform Consultant. John Marquez was a successful candidate for Contra Costa Community College Board in the November 6, 2018 General Election. John Marquez for CCC College Board 2018 was his candidate-controlled committee. The Committee and Marquez failed to timely file two semiannual campaign statements, in violation of Government Code Section 84200 (2 counts). Fine: $439.

In the Matter of Greg Dale for Harbor Commission 2015, Greg Dale, and Sandra Dale; FPPC No. 19/1525. Staff: Galena West, Chief of Enforcement and Ginny Lambing, Political Reform Consultant. Greg Dale was a successful candidate for Humboldt County Harbor Commission in the November 3, 2015 General Election. Greg Dale for Harbor Commission 2015 is his candidate-controlled committee. Sandra Dale is the Committee’s treasurer. The Committee, Dale, and Dale failed to timely file two semiannual campaign statements, in violation of Government Code Section 84200 (2 counts). Fine: $409.

In the Matter of Committee to Recall Jose Lara and Leanne M. Ibarra 2019 and Susanne Perea; FPPC No. 19/1762. Staff: Galena West, Chief of Enforcement and Ginny Lambing, Political Reform Consultant. Committee to Recall Jose Lara and Leanne M. Ibarra 2019 is a local primarily formed committee. Susanne Perea is the Committee’s treasurer. The Committee and Perea failed to timely file a quarterly campaign statement, in violation of Government Code Section 84202.3 (1 count). Fine: $292.

Lobbying

In the Matter of LAFC StadiumCo, LLC (Los Angeles Football Club); FPPC No. 18/1552. Staff: Galena West, Chief of Enforcement and Tara Stock, Intake Manager. LAFC StadiumCo, LLC (Los Angeles Football Club), a lobbyist employer, failed to timely file two lobbyist employer reports, in violation of Government Code Section 86117 (2 counts). Fine: $752. 

In the Matter of Sam Lauter; FPPC No. 19/1699. Staff: Galena West, Chief of Enforcement and Ginny Lambing, Political Reform Consultant. Sam Lauter, a lobbying firm, failed to timely file a lobbying firm quarterly report, in violation of Government Code Section 86114 (1 count). Fine: $380.

Statement of Economic Interests Late Filer

In the Matter of Danielle Bogan; FPPC No. 19/638. Staff: Galena West, Chief of Enforcement and Cheng Saetern, Assistant Political Reform Consultant. Danielle Bogan, a Director for the Health and Human Services Agency of El Dorado County, failed to timely file an Assuming Office, a 2017 Annual, and a 2018 Annual/Leaving Office Statement of Economic Interests, in violation of Government Code Section 87300 (3 counts). Fine: $600.

In the Matter of Terra Brusseau; FPPC No. 19/715. Staff: Galena West, Chief of Enforcement and Cheng Saetern, Assistant Political Reform Consultant. Terra Brusseau, a Board Member for the Fresno Housing Authority, failed to timely file a 2018 Annual Statement of Economic Interests, in violation of Government Code Section 87300 (1 count). Fine: $400.

In the Matter of Joseph Myers; FPPC No. 19/1151. Staff: Galena West, Chief of Enforcement and Ginny Lambing, Political Reform Consultant. Joseph Myers, Commissioner of the Native American Heritage Commission, failed to timely file a 2018 Annual Statement of Economic Interests, in violation of Government Code Section 87300 (1 count). Fine: $200.

In the Matter of Patrick Parker; FPPC No. 19/683. Staff: Galena West, Chief of Enforcement and Cheng Saetern, Assistant Political Reform Consultant. Patrick Parker, a Member of the Community Planning Group of San Diego County, failed to timely file an Assuming Office Statement of Economic Interests, in violation of Government Code Section 87300 (1 count). Fine: $200.

Statement of Economic Interests Late Reporter

In the Matter of Jimmie Soto; FPPC No. 19/1565.  Staff: Galena West, Chief of Enforcement and Tara Stock, Intake Manager. Jimmie Soto, a former Member of the California State Independent Living Council, failed to timely disclose a source of income on his 2017 Annual, 2018 Annual, and Leaving Office Statements of Economic Interests, in violation of Government Code Section 87300 (3 counts). Fine: $300.

In the Matter of Danielle Anderson; FPPC No. 19/1562. Staff: Galena West, Chief of Enforcement and Tara Stock, Intake Manager. Danielle Anderson, a Member of the California State Independent Living Council, failed to timely disclose a source of income on her Assuming Office and 2018 Annual Statements of Economic Interests, in violation of Government Code Section 87300 (2 counts). Fine: $200.

In the Matter of Lisa Hayes; FPPC No. 19/1563. Staff: Galena West, Chief of Enforcement and Tara Stock, Intake Manager. Lisa Hayes, a Member of the California State Independent Living Council, failed to timely disclose a source of income on her 2018 Annual Statement of Economic Interests, in violation of Government Code Section 87300 (1 count). Fine: $100.

In the Matter of Curtis Cannon; FPPC No. 20/418. Staff: Galena West, Chief of Enforcement and Tara Stock, Intake Manager. Curtis Cannon, an Economic Development Manager for the City of Palmdale, failed to timely disclose a source of income on his Assuming Office Statement of Economic Interests, in violation of Government Code Section 87300 (1 count). Fine: $100.