ELECTIONS 21ST CONGRESSIONAL DISTRICT : Korman Names Gallegly Backer in Suit

Republican congressional candidate Sang Korman said Friday he filed a $5-million lawsuit against a conservative supporter of Rep. Elton Gallegly (R-Simi Valley), charging the supporter libeled Korman by publicly questioning his campaign finances.

The lawsuit was announced with just three days remaining in the increasingly rancorous primary-election battle between Gallegly and Korman, a wealthy Korean-American developer who has vigorously attacked the incumbent with a $120,000 barrage of radio and television ads. Korman lost badly to Gallegly in the 1988 GOP primary, capturing less than 14% of the vote.

Stephen R. Frank, a Gallegly ally and Simi Valley public affairs consultant, filed a complaint with the Federal Elections Commission asking for an investigation of Korman’s finances, including whether a $12,000 debt to his 1988 political consultant constitutes an illegal corporate campaign contribution.

At a news conference at Korman’s campaign headquarters Friday, Korman’s lawyer, Franklin Pelletier, stood at a podium explaining the libel suit while Korman slumped in a nearby chair, saying little and looking dejected.

Pelletier acknowledged that Frank was within his rights to file a complaint against Korman with the elections commission, which keeps such documents confidential while they are investigated. But the lawyer said Frank opened himself to a libel allegation by circulating copies of the complaint to reporters.

“We don’t think Mr. Frank’s intentions were simply to file a complaint,” he said. “We believe his intentions were clearly to smear” Korman immediately before the June 5 primary in the 21st Congressional District, which stretches from northern and western Los Angeles County into southern and eastern Ventura County.

Frank, a former state chairman of a conservative GOP volunteer group, was unavailable for comment Friday. He has said in the past he supports Gallegly politically but does not work for him. Frank has said he filed the complaint because he believes in good government.

Frank’s complaint questioned a $12,000 debt Korman owes Marathon Communications, which acted as his political consulting firm in 1988. Frank said Korman has made no payments on the debt in the past 18 months and it “appears to me” the money amounts to a donation to Korman.

Pelletier said the debt will be paid after Korman’s current campaign and was “never intended as a donation or gift” from Marathon.

Sharon Snyder, elections commission spokeswoman, said the commission investigates a number of factors in determining whether unpaid debts are actually contributions, including whether a contributor has sued to recover the money. Political candidates--especially losers--often carry debts for years before finally paying, she said.

Pelletier said he may amend the lawsuit to name Gallegly as a defendant if it is found that the congressman “acted in collusion” with Frank. A Gallegly spokesman said Frank has “no connection whatsoever with our camp.”