Antonovich Admits Failing to Report $100,000 Loan

Los Angeles County Supervisor Mike Antonovich admitted Friday that he failed to report properly an apparently illegal $100,000 loan for his 1986 Republican primary campaign for the Senate, but he said the mistake was purely technical.

“I thought it was OK,” Antonovich said at a press conference. “Three years later, I am being apprised that this is a technical violation.”

Antonovich was responding to a report in the Herald Examiner that he accepted the loan from a corporation owned by Abraham Spiegel, a Beverly Hills financier active in local politics, despite a ban on a corporate donations in federal campaigns.

He also failed to report the loan on his campaign finance report, as required by federal law. The Federal Elections Commission has contacted him about the loan, Antonovich said. Commission officials refused to comment Friday.

The loan from Remington Investment Co., a now-defunct Beverly Hills investment, securities and real estate firm, was reported in March, 1987, nine months after the primary, on Antonovich’s financial disclosure report.

Antonovich listed it as a personal loan which he had repaid and made no reference to the loan’s use for his Senate campaign.

He said Friday that he accepted the loan as an individual and then loaned the money, in turn, to his campaign.

Federal election law forbids contributions or loans from corporations, even if they are made through a third party, said a spokesman for the Federal Elections Commission. It also prohibits contributions in excess of $1,000 from individuals.

According to Antonovich, he went to Spiegel short of cash in the waning days of his 1986 Senate campaign. He described Spiegel as an old friend who has advised him on personal financial matters.

Antonovich borrowed the money for a last-ditch television campaign, against the advice of at least one of his campaign consultants, Sal Russo, who considered the race lost.

“I discouraged him” from taking out the loan, Russo said in an interview Friday. “I felt it wouldn’t make any difference. . . . It was pretty evident it was going to be a race between (Ed) Zschau and (Bruce) Herschensohn.”

“He felt it was worth a shot, and he could afford it,” Russo said.

‘I’m Not a Quitter’

Antonovich, who spent $1.4 million on the campaign, finished third with 9% of the vote. Zschau won the primary with 37% of the vote, but lost in the November election to the Democratic incumbent Sen. Alan Cranston.

“I’m not a quitter,” Antonovich said Friday, explaining why he sought the loan.

Antonovich said he used stock he owned in BCI Holding Corp. and Columbia Savings & Loan as collateral for the loan. Spiegel is founder and vice chairman of Columbia.

The activities of Columbia and its chairman Thomas Spiegel, son of Abraham Spiegel, are being scrutinized in connection with an insider-trading investigation of Drexel Burnham Lambert and its former junk bond king, Michael Milken.

Repaid Loan

Antonovich said he repaid the loan, at 1/2% over the prime rate, within 90 days from his Senate campaign coffers. He said he repaid $2,500 in interest out of his own pocket.

He admitted that he failed to check with the Federal Elections Commission before obtaining the loan.

Abraham Spiegel declined comment.

Antonovich said he was contacted by the Federal Elections Commission a few months ago “just wanting additional information.” He said he did not know what prompted the commission’s inquiry.

Violations of federal election law are subject to penalties of $5,000 or the amount of the violation, whichever is greater, said Federal Elections Commission spokesman Fred Eiland. The lender also can be held liable for violations.

No Attempt to Obscure

‘We do feel when an explanation is given to the Federal Elections Commission, they will be able to see that we at no time attempted to obscure the loan,” Antonovich said.

“It was reported on the conflict-of-interest statement,” he added. He said has retained a former Federal Elections Commission attorney to represent him.

Antonovich said he was unaware of whether Abraham Spiegel or any of his firms, who have contributed $7,000 to the supervisor’s Senate and reelection campaigns since 1984, conducts business with the county. He said Spiegel has never asked any favors for his financial support.

Asked why Spiegel loaned him the money, Antonovich said: “He knew he was going to get the money back because I was going to be responsible for it. He was a supporter of mine in the Senate campaign and was a friend.”

Lost Money on Stock

Antonovich said he bought stock in BCI and Columbia Savings & Loan on the recommendation of Abraham Spiegel. He said he personally lost $10,000 on the stock transactions.

Antonovich said he will pay any fine out of campaign funds.

During his press conference, Antonovich complained about the press coverage of the loan. It “is something I don’t understand, especially when we are witnessing the need for public attention for young people fighting for freedom in China.”

Columbia Savings & Loan issued a statement disassociating the savings and loan firm and Thomas Spiegel from the loan.

“Remington was not affiliated with Columbia in any way, nor did it conduct any business with Columbia,” the statement said. “Although Thomas Spiegel, Columbia chairman, served as an officer of Remington, he did not participate in the management of Remington’s business.

Not Aware of Loan

“Neither Thomas Spiegel, nor any other person associated with Columbia, except for Abraham Spiegel, was aware of the loan, or had any contact with Mr. Antonovich at the time the transaction occurred,” the statement continued.

Usually, if the commission finds that a violation has occurred, it attempts to negotiate a fine with the accused, Eiland said. If no agreement can be reached, the commission then files suit in federal court.