District Attorney Launches Probe of Villaraigosa Campaign Contributions

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Los Angeles County District Attorney Steve Cooley announced Friday that his office has opened a “preliminary inquiry” into out-of-state campaign contributions to mayoral candidate Antonio Villaraigosa just as the mayoral race heads into its final weeks.


“In response to extensive media coverage, I believe an inquiry is warranted and have instructed our Public Integrity Division to take the necessary first steps,” Cooley said in a statement released Friday afternoon.


D.A. spokeswoman Jane Robison said the purpose of a preliminary inquiry is to determine whether there is reason to pursue a full-blown investigation into Villaraigosa’s campaign contributions.


On Wednesday, the Torrance-based Daily Breeze reported that Villaraigosa received $31,000 in campaign contributions from employees of Florida-based Travel Traders Inc. and a related firm, S.E. Florida Investments. Sean Anderson, the president of Travel Traders, formerly was the head of U.S. travel retail operations for W.H. Smith Group, which until recently had the largest concession contract at Los Angeles International Airport.


The donations have raised questions about whether they are legal and if Anderson was trying to gain influence with Villaraigosa should he be elected mayor. Travel Traders runs concessions at hotels but it has been reported that a possible reason for the donations is to help it get a concessions contract at LAX.


Under Los Angeles city campaign laws, it is illegal for employees to make contributions and then be reimbursed for their contributions. So far, no evidence has emerged that reimbursements were made.


When contacted by various media outlets, several employees at the two firms said they either could not remember giving money to Villaraigosa, gave factually incorrect statements about why they contributed or refused to answer any questions about their contributions.


A major theme of Villaraigosa’s campaign has been the alleged ethical violations of Mayor Jim Hahn’s Administration. This latest controversy opens him up to the same charges.


In his statement, Cooley also noted that his office has two cases still pending from the 2001 mayoral campaign of Mayor Hahn.


One involves Westside developer Mark Abrams for allegedly laundering contributions to Hahn’s campaign. The other involves attorney Pierce O’Donnell, who is charged with laundering $25,000 in donations to Hahn’s campaign by reimbursing employees and associates. That case is currently pending in Los Angeles County Superior Court.


Cooley, a Republican, has not endorsed a candidate in the mayoral runoff, and Robison said he does not plan to do so. She also denied that there were any political motivations in launching the preliminary inquiry.


“He is the elected district attorney, here to make sure the laws are followed by all candidates,” Robison said.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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