Lobbyist Testifies He Gave Lynwood Ex-Mayor $7,500

A onetime lobbyist for a Southern California advertising company testified Friday that he gave an illegal $7,500 gratuity to a campaign fund controlled by former Lynwood Mayor Paul Richards to help his client win a city contract to put up large billboards along the Century Freeway.

The payment was part of some $35,000 in contributions that lobbyist David Neal Smith raised while negotiating with Richards in 2001 on behalf of Regency Outdoor Advertising. Smith did not testify, however, that Richards demanded the money in exchange for supporting the deal. Regency was awarded the contract, but it was rescinded before the billboards went up.

Richards, who was ousted in a recall election two years ago, is on trial in Los Angeles federal court on charges of conspiracy to commit extortion, fraud, money laundering and depriving the public of honest services.

Smith, 65, pleaded guilty in August to making the illegal payment to Richards and agreed to testify for the prosecution.

Much of the case revolves around the role of Allied Government Services, a front company that prosecutors say Richards set up in the name of his sister, Paula Cameo Harris, to do business with the city. Harris, 56, of Altadena, is on trial with her brother and Bevan A. Thomas, 56, of Anaheim, a longtime Richards friend.

Smith testified Friday that in 2001, Richards got a majority bloc he controlled on the City Council to hire Allied Government Services as its exclusive negotiating agent with Regency. The contract called for Regency to pay the city $4.8 million, $960,000 of which was earmarked for Allied.

Under questioning by Assistant U.S. Atty. Bruce Searby, Smith said that Allied played no role in the actual negotiations.

He said he became concerned when he learned that Allied’s president was Richards’ sister, but he went along with the arrangement.

The Regency contract was rescinded after Richards lost his council majority in late 2001. He was recalled from office two years later.

Also testifying against Richards on Friday was another sister, Milena Naulls, a mortgage underwriter who now lives in Las Vegas.

Naulls, once active in her brother’s political campaigns, denied lending $34,000 to a Richards campaign fund. The alleged loan was listed on Richards’ public campaign records as not reimbursed.

Prosecutors said he used the campaign fund to launder illicit payments from city contractors.