League Will Stop Taking Donations

In the wake of a controversy about its fund-raising activities, the founder of a nonprofit corporation critical of the countywide slow-growth initiative said Monday that the organization will not accept any more contributions until after the June 7 election.

Former Brea City Manager Wayne Wedin, who established the Transportation League in February, also disclosed that the league had received $5,000 each from the Akens Development Co., the William Lyon Co. and the Fieldstone Co. Also, he reported receiving $2,500 from D & D Development Co., and $100 from Gilbert Aja & Associates.

A $5,000 check from the Santa Margarita Co. is being returned to the company after the firm said it was withdrawing its support and would contribute to the anti-initiative Citizens for Traffic Solutions instead.

“We will report everything we have to and then some,” said Wedin, a business consultant.

Wedin and the league were caught up in the fund-raising controversy last week when a Times article quoted a Feb. 23 letter written by John Simon, treasurer of Citizens for Traffic Solutions. In the letter Simon suggested that the nonprofit league could be used as a “vehicle” for publicity-shy donors to keep their names secret.

$18,000 Spent

Wedin said his group had raised and spent about $18,000, mostly on “organizing” and a small amount of research. Last week he had said the money was spent mostly on public opinion polling.

Wedin said he decided to disclose his group’s finances and cut off current fund-raising activities not in reaction to publicity about Simon’s letter, but rather because of questions raised by reporters.

“I hope this will clear the air,” he said.

In a related action Monday, Simon apologized for writing the Feb. 23 letter.

Simon said in a prepared statement that the letter was a “mistake.”

“They must be fearful that they will get caught,” said initiative sponsor Tom Rogers, referring to Monday’s developments.

The actions taken by Simon and Wedin Monday followed Times articles last week in which the state Fair Political Practices Commission said nonprofit corporations are not exempt from campaign finance disclosure laws, even if they do no more than commission polls and do not take a position for or against political candidates or ballot measures.

In his Feb. 23 letter to potential supporters, Simon had said the league was seeking nonprofit status from the Internal Revenue Service and was engaged in developing long-range traffic solutions. In the short term, the letter said, the league could be used as a “vehicle” to keep secret the identities of publicity-shy donors.

On Friday, The Times reported that at least one development firm--the Santa Margarita Co.--had voluntarily disclosed that it had given the Transportation League $5,000 in February but would no longer provide financial support to the league.

“Perhaps I was a little naive about political campaign procedures when I wrote my letter on Feb. 23,” Simon said in his prepared statement Monday. “ . . . I am now aware that my letter was a mistake. Citizens for Traffic Solutions will report all campaign contributions on May 26 and subsequent dates as required. . . . I am sorry if the letter caused problems with the Transportation League and with individuals or companies who wish to support our campaign against Measure A (the slow-growth initiative).”