Judge drops final charge in ’04 campaign finance case

In a contentious case reaching back to the 2004 presidential campaign, a federal judge Monday agreed to dismiss a final charge of illegal campaign finance violations against prominent Los Angeles attorney Pierce O’Donnell.

O’Donnell’s representatives portrayed the action in U.S. District Judge S. James Otero’s court as a vindication of their client.

But officials with the U.S. attorney’s office say they intend to pursue the charge at a later date, adding that Monday’s dismissal was agreed to by both sides to avoid the chance of having to conduct two trials in the same case.

Last year, prosecutors charged O’Donnell with two counts of violating federal campaign laws by soliciting employees to donate to Democrat John Kerry’s presidential campaign and then reimbursing them. Otero tossed out those charges June 8, saying the statute cited by prosecutors in last July’s indictment did not prohibit such activity.

Prosecutors have filed a notice that they intend to appeal Otero’s ruling.

The judge let stand a third charge that O’Donnell knowingly caused a political action committee treasurer to make false statements about the contributions.

Trial on that count was scheduled to begin July 7, until Monday’s dismissal.

An agreement filed by prosecutors and O’Donnell’s attorneys says the charge may be refiled, pending the outcome of the government’s appeal on the rest of the case.

Appeals or a trial are expected to drag out a resolution of the case for at least several months.

Still, O’Donnell’s attorney, George Terwilliger, issued a statement Monday saying that prosecutors “did the right thing by dismissing the final charge and vindicating Pierce in his fight against these allegations.”

That prompted U.S. Atty. Thomas P. O’Brien’s spokesman, Thom Mrozek, to cite the agreement signed by both sides and filed with the court.

It says the dismissal was sought “to avoid the possibility of two separate trials and the resulting additional expenditure of resources.”

Said Mrozek: “It is our intention to try Mr. O’Donnell on at least count three -- and hopefully all three counts -- once the matter returns to the trial court.”

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rich.connell@latimes.com