Political Group Resolves Funding Charges

ANAHEIM —  A conservative political action committee agreed Wednesday to pay the city $9,355 to settle charges that it violated campaign laws.

The civil settlement ended misdemeanor charges against Lake Forest-based Business and Taxpayers Good Government Committee, led by attorney Rex Brady and Stephen Sheldon, son of the Rev. Lou Sheldon of Anaheim-based Traditional Values Coalition.

In the last weeks before the November 1996 council election, the committee received contributions ranging from $5,000 to $15,000. City law limits individual donations to candidates and political action committees to $1,000.

The $48,500 in contributions largely came from gaming interests, including $20,000 from Californians for Local Control, and conservative business people.

Days before the election, the committee spent about $32,000 for campaign material in support of unsuccessful council candidate Lucille Kring. The material attacked incumbent Frank Feldhaus, who lost his seat, and Shirley McCracken, who was elected.

Attorney Edward W. Hall, representing the committee, said his clients agreed to settle to avoid costly legal bills.

Hall also said the committee contacted Anaheim’s city attorney on Jan. 31, 1997, to report their potential campaign law violations, and that his clients have since cooperated with the investigation to seek a resolution.

According to the settlement, the committee admitted to violating the state Political Reform Act by failing to file late independent expenditure reports within 24 hours. They spent $15,220 on Oct. 28, 1996, and an additional $16,966 two days later, both times in support of Kring. The committee did not report the two expenditures until Nov. 4, 1996.

City Atty. Jack L. White filed the criminal charges against the committee last August, later turning the case over to independent prosecutor Ravi Mehta. Mehta, former state Fair Political Practices Commission chairman, was hired at the behest of Councilmen Lou Lopez and Bob Zemel to investigate allegations of campaign-law violations by current and former council members.

Mehta said he is satisfied with the settlement since the committee “has admitted to violations” and the group will cease to exist.