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Bernhardt Is Target of Probe by D.A.’s Office : Politics: Councilwoman’s campaign finances appear to be primary focus of wide-ranging investigation, sources say.

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TIMES STAFF WRITER

San Diego City Councilwoman Linda Bernhardt, already facing a campaign to recall her from office, has become the target of a wide-ranging investigation by Dist. Atty. Edwin Miller’s office that appears to focus primarily on Bernhardt’s campaign finances, sources said.

Over the past two months, an investigator for Miller’s office has interviewed former Bernhardt chief of staff Chris Crotty, recall chairman Kathy Gaustad, recall political consultants Jack Orr and Bob Trettin, and a Glendale printer who produced Bernhardt’s campaign literature and is owed about $40,000, according to knowledgeable sources who demanded anonymity.

The sources said that Carlos Rebelez, an investigator for the district attorney, is looking into numerous issues, including the funding of the Bernhardt campaign, Bernhardt’s lingering campaign debt, how Bernhardt became associated with political consultant Rick Taylor, and Taylor’s role as a paid consultant to McMillin Development. McMillin recently settled a lawsuit with the city governing construction of the controversial Miramar Ranch North project in Bernhardt’s district.

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District attorney’s office spokesman Steve Casey would not comment on whether Miller has initiated an investigation of Bernhardt. Bernhardt did not return a telephone call to her council office and was not in the office when a reporter attempted to interview her Wednesday evening.

But Taylor vehemently denied any improprieties by the Bernhardt campaign and alleged that complaints against the councilwoman came from leaders of the recall effort.

“If they’re looking for something, come and ask me,” Taylor said. “We’ve got nothing to hide.

“The only thing that surprises me is that the D.A.’s office would allow itself to get immersed in a political battle like this and waste taxpayers’ money,” Taylor said. “I think there’s no question the complaint was lodged by some anti-Bernhardt person. It’s politically motivated.”

In another development Wednesday, Bernhardt’s office issued a statement saying that her chief of staff, Aurie Kryzuda, and aide Jay Powell will be leaving the staff during the next month “to pursue other career opportunities.”

Kryzuda will be replaced by Heidi Bunkowske, who the statement said has 10 years of experience in federal, state and local government.

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The Recall Bernhardt Committee has submitted signatures on petitions calling for an election to oust the 5th District councilwoman, who was elected in November, 1989, but City Clerk Charles Abdelnour’s office has not yet determined whether there are enough valid signatures to call an election.

Some of the questions being asked by Rebelez are similar to issues already raised in news stories during the past year.

In August, City Atty. John Witt’s office said it was examining whether Bernhardt was guilty of a misdemeanor criminal violation for carrying a campaign debt that totaled more than $120,000 as of her last filing, on June 30.

A city law makes it illegal for a candidate to owe money to anyone but himself for more than 30 days. Bernhardt has stated, however, that she believes she is in compliance with the law.

The debt, a substantial portion of which was owed to Taylor and the Glendale printer, has been whittled to a significantly smaller sum through vigorous fund raising, according to Bernhardt fund-raiser Jean Andrews. Taylor and printer Ron Charles, general manager of Charles Print-O-Graph, both said Bernhardt has been making payments.

Taylor’s status as a paid consultant to McMillin Development, which is attempting to win city approval for the controversial housing project north of Miramar Lake, also has been the subject of at least one news story.

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Taylor said Wednesday that he is on a monthly retainer to McMillin and has a clause in his contract calling for a bonus to be paid to him if McMillin wins approval of the project. He declined to give the size of either payment.

Taylor also said he has worked for two other developers with projects in Bernhardt’s district.

Several of those questioned by Rebelez declined comment when contacted by The Times. But Charles said that Rebelez asked to see the work he did for Bernhardt, along with a price list and invoices.

Kathy Gaustad, a leader of the Bernhardt recall campaign, said Rebelez questioned her in a brief telephone call Oct. 17 about a videotape she possesses of a man who she claims was hired to harass recall petition gatherers. Rebelez did not view the videotape, but asked her to keep it in a safe place, Gaustad said.

Crotty, who a source said was interviewed Tuesday, declined to comment. Trettin and Orr, who a source said were questioned last month, also refused to discuss the interviews.

But several sources said that Rebelez is casting a wide net, asking questions about a variety of campaign activities and often focusing on Taylor. Rebelez also is interested in Taylor’s relationship with developers after Bernhardt was elected, sources said.

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