Panel Probes Finances of Lindsay’s Campaign

The state Fair Political Practices Commission is reviewing one of Los Angeles Councilman Gilbert Lindsay’s campaign fund-raising committees for possible violations of public reporting requirements, The Times has learned.

Public records show that Lindsay has failed to fully and accurately disclose how more than $300,000 has been raised and spent by LIN PAC, one of two political fund-raising committees controlled by the veteran downtown councilman.

An analysis of records by The Times found that LIN PAC’s financial reports over the past two years have so many basic mathematical errors and significant omissions that it cannot be determined from the public record how much money has passed through the fund.

“It’s a real mess . . . grotesque sloppiness,” said one source familiar with the reports, who asked not to be identified.

The FPPC, which enforces state campaign contribution laws, is reviewing records on Lindsay’s committee at the request of the Los Angeles city attorney’s office, which is completing a separate review of LIN PAC activities.

Charles Goldenberg, a supervising assistant city attorney, said the matter was referred to the state commission last month after a number of inaccuracies were discovered in campaign finance statements filed on behalf of LIN PAC. There “is a question whether or not those inaccuracies would be violation of the government code,” said Goldenberg.

Lindsay denied any wrongdoing and described the problems as “minor” accounting mistakes.

Goldenberg and an FPPC spokesperson declined to discuss details of the review.

LIN PAC is not Lindsay’s principal reelection fund. It was formed by Lindsay in 1985 and structured to allow him to collect contributions in excess of limits approved by city voters that same year. Much of the more than $300,000 raised has come from Lindsay’s business supporters, including developers, downtown corporations and financial companies wanting a piece of the city’s huge municipal bond business.

LIN PAC funds cannot be used directly for a city race, but Lindsay has used some of the money to enhance his image by hiring additional staff to represent him in the community and by contributing to community groups, records show. He has also given and loaned large amounts to other candidates, including Mayor Tom Bradley, Los Angeles Councilman Nate Holden and state Controller Gray Davis.

The Los Angeles city clerk’s office has been trying for several months to get a complete accounting of LIN PAC’s activities. But based on the records filed so far, “there is no way of telling exactly what has happened,” said Barbara Lavendar, who reviews campaign contribution reports in the city clerk’s office. Lavendar said she hopes to meet with Lindsay’s representatives soon to try to resolve some of the problems, which include:

- For the past year, reports filed on behalf of LIN PAC failed to include essential information required by state law, such as how much money the committee has on hand.

- LIN PAC appears to have reported spending more than it has reported collecting. The difference, based on the figures in Lindsay’s public reports, could be tens of thousands of dollars.

- Lindsay and his representatives have taken months to respond to requests from city officials for additional information on the committee’s finances.

- Amendments to the campaign reports filed by Lindsay a few weeks ago were supposed to correct the record but instead added new errors, further obscuring the true status of the political fund.

Herbert A. Howard, the treasurer of LIN PAC, refused to answer questions about the committee and referred questions to Lindsay.

Lindsay, one of the leading City Hall critics of efforts by political watchdog groups to limit contributions and toughen reporting requirements, said he was the only one who could answer questions about the fund but was not familiar with the details of LIN PAC reports. He said he is trying to straighten the records out. “We’re working on it day and night,” he said, blaming the problems on volunteers who help prepare reports but were not familiar with the reporting requirements. But he added, “I’ve made some mistakes. I admit it.”

Lindsay said LIN PAC currently has about $28,000 in cash on hand and has raised a little more than $300,000 since LIN PAC was formed in 1985. But some records filed with the city and county registrar indicate that since then nearly $400,000 has been spent--a figure Lindsay’s says cannot be accurate.

He suggested that aides may have inadvertently mixed up expenditures made from his “personal account” with those made by LIN PAC. But he added, “I haven’t spent a dime on myself . . . I’m clean as a hound’s tooth.”

Asked if LIN PAC’s collections and expenditures balance, Lindsay said, “When I get through . . . you’ll be able to tell, I hope.”

City Clerk Does Audit

Miriam Markus, assistant excutive director of Common Cause, said her group has been concerned about the incomplete information in some of Lindsay’s campaign filings. She said the confused state of LIN PAC records and the delays in providing required information thwarts the intent of the campaign finance laws. “The purpose of the disclosure is . . . so you, I or any constituent can go into the elections office, look at the records for Gil Lindsay and find out what makes this campaign tick,” she said.

LIN PAC is one of several state-regulated committees that have come under scrutiny by the city clerk and city attorney offices for other reasons. An as yet unreleased audit of LIN PAC was begun last year by the city clerk after political activist groups, including the Center for Law in Public Interest, charged that such committees were violating the 1985 city law limiting contributions to candidates.

That law restricts contributions to $500 for councilmen and $1,000 for citywide candidates, such as mayor and city attorney.

Goldenberg, of the city attorney’s office, said this week that his inquiry into LIN PAC is nearly complete and he has not found any violations of the city law.