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Schwarzenegger cleared of money violation claim

By Josh Richman
Friday, September 25th, 2009 at 10:43 am in Arnold Schwarzenegger, General.

California’s Fair Political Practices Commission has reviewed a much publicized complaint about Gov. Arnold Schwarzenegger’s income and found no violation of the state’s Political Reform Act.

In a Sept. 9 letter, FPPC Executive Director Roman Porter said his agency had received a complaint July 19, 2005 about the governor’s business relationships with health and bodybuilding magazine publisher Weider Productions LLC and its parent company, American Media Inc.

That complaint came four days after news outlets reported that just before he’d been sworn into office in 2003, Schwarzenegger had inked a consulting deal with Weider estimated to bring him $8 million over five years; the governor was to get 1 percent of the magazines’ ad revenue, much of which comes from nutritional supplement manufacturers. The governor in 2004 vetoed legislation that would’ve imposed regulations on that industry.

“The complaint alleged that payments the Governor received through Oak Productions Inc. from Weider Productions LLC or American Media Inc. were prohibited honoraria or gifts under the Act, or were a disqualifying source of income for conflict of interest purposes. Further, the complaint alleged that a payment which American Media Inc. made to the Governor’s charitable organization, the Governor’s Council on Physical Fitness, was a behested payment that was not properly reported,” Porter’s letter says.

“This letter is to advise the Governor that we have completed our review of the foregoing allegations and found no violation of the Act,” he concluded. “We have therefore closed our file.”

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