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More Perata campaign-finance intrigue

By Josh Richman
Monday, January 11th, 2010 at 9:07 pm in campaign finance, Don Perata.

We’ve got an article up about former state Senate President Pro Tem and 2010 Oakland mayoral candidate Don Perata’s ballot-measure committee paying Oakland City Councilmember Ignacio De La Fuente $25,000 for campaign consulting work, but that’s not the only tidbit we found in Perata’s recent filings.

Perata in late 2008 had transferred $1.9 million from his Leadership California committee – now called Hope 2010, supporting a cigarette-tax-for-cancer-research ballot measure – into the legal defense fund shielding him from a years-long FBI corruption probe; the California Democratic Party also had anted up $450,000 for the legal defense fund. Both were to the chagrin of some progressive activists who thought that money should’ve been spent instead on some of 2008’s hard-fought legislative campaigns.

Federal prosecutors in May 2009 announced no charges would be filed in the Perata probe, and Perata struck the tent on his legal defense fund in July and – after having spent millions on his defense over the years – had some left over to refund to contributors: $534,850 to his Leadership California/Hope 2010; $156,401.43 to his Taxpayers for Perata Committee; $126,675 to the California Democratic Party; and $204,266.32 back to dozens of individual donors.

One of those refunds then followed a strange path.

The Taxpayers for Perata Committee, ostensibly formed for Perata’s never-materialized 2010 Board of Equalization campaign – had shut down in December 2008 but reopened briefly this summer to accept the legal defense refund. It then promptly gave $155,830.07 on July 21 to “Voters Organized for Community Empowerment – VOICE” in Los Angeles. That committee, in turn, gave $152,188 in November to Hope 2010.

So: from Perata, to Perata, to someone else, to Perata. What’s that all about?

Records from the Secretary of State’s office show Voters Organized for Community Empowerment-VOICE was formed last June, just weeks before receiving the money from Taxpayers for Perata, listing Jone Anderson Canaday of Jackson, in Amador County, as its board president. It initially filed as a city committee aimed at increasing voter participation in 2010, but filed an amendment reclassifying itself as a state committee with the same purpose in October – three months after receiving the money from Taxpayers for Perata, and one month before giving it to Hope 2010.

Canaday, reached briefly on her cell phone at midday, said she was driving and would call back later; she didn’t.

Perata told my colleague Kelly Rayburn earlier today that he’d given the money to VOICE to support a friend’s community organizing efforts, primarily in the Latino community.

“What I said was, ‘If that’s not going to used for the purposes it was intended for, I want it back for the cancer measure,’” he said, adding he had been unaware that the money was actually returned to Hope 2010.

Yep, sorta lost track of that $150,000 for a while. One of my fellow reporters was rubbing his head while listening to all this today; I told him now he knows how all those FBI agents and federal prosecutors felt as they tried to follow the money through Perata’s finance labyrinth.

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  • Kent Melgoza

    What about all the poor saps that don’t have the money to defend themselves against a federal government that has endless resources. Without that money he would have been part of the 98% that pleads.

  • John W.

    “What about all the poor saps…?” Screwed! As for Don, I’m sure everything is on the up and up.

  • Elwood

    Well, of course you all know the Don’s campaign slogan don’t you:

    “NEVER BEEN INDICTED”

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  • http://www.auditoaklandceda.com RdwithCypress

    All of these guys donate directly to Don Perata. Joe Tuman spoke directly about cronyism at the last mayoral forum. Let’s talk about the so called transit village.

    The transit village project is being handled by the Aegis Group

    http://www.aegisrealty.com/

    Aegis used to use a certain political lobbying company (unregistered of course) by the name of the Enterprise Group for dealings with a little company called PPD Merritt I, LLC.

    PPD sold its project property to the City at a great profit and avoided foreclosure as a result of the CEDA.

    The kicker is that Enterprise Group is/was Walter Cohen the current Director of CEDA.

    Talk about cronyism. The whole thing is a back room deal.

    The connection to CEDA director Walter Cohen and Don Perata is clear as a bell. The insiders are making millions on these deals and the only one who seems to care is Joe Tuman. Did you hear him talk about the cronies at the forum at holy names? He actually stood up for this part of the discussion.

    Aegis=PPD=enterprise group=desilva=greg fisher=Walter Cohen=DON PERATA = Valdez Property = Transit Village?!?. For God Sake, No one thinks this is a problem?! Where the hell is the FBI!