State Tax Board Member Accused of False Claims

William M. Bennett, a combative, outspoken State Board of Equalization member who built a career exposing the ethical misdeeds of others was charged Thursday on 23 counts of filing false travel claims.

The felony charges, outlined in a 13-page criminal complaint filed by Sacramento Dist. Atty. Steve White, accuse the veteran board member of collecting reimbursement from the state for hotel, meal and other travel expenses he did not incur.

White said the charges are based on travel claims and business records that Bennett submitted to the state between January, 1988, and April, 1990, and involve alleged “false claims” for about $9,000. A report attached to the criminal complaint indicates that in many instances Bennett claimed to be out of town at a time when gasoline receipts and mobile telephone records for the same period showed him making phone calls and buying gas near his home.

“Those records indicate that Bennett could not have been at the locations claimed at the time necessary for him to have the expenses he claimed,” White said.

Bennett, 72, became the second member of the state tax board to face felony charges in the last year. In September, Paul Carpenter, a former state senator, was convicted in federal court on four counts of racketeering, extortion and conspiracy, for using his legislative office to extract campaign contributions.

By prearrangement with the district attorney, Bennett, accompanied by his wife, son and daughter, voluntarily surrendered at the district attorney’s office at 10 a.m. and was taken into custody. He was then driven to the sheriff’s office where he was escorted through a back entrance for booking to avoid the news media that had gathered in a front lobby. He was later released on his own recognizance.

On the advice of his attorneys, Bennett declined to make any direct comments although his lawyers issued a statement on his behalf characterizing the charges as “unfounded” and saying Bennett would “fight them.”

“It is deeply disappointing that of all people, the state would attack Bill Bennett,” said San Francisco attorney James J. Brosnahan. Bennett, who is a Democrat, is scheduled to be arraigned in Sacramento next Thursday.

Bennett’s colleagues on the State Board of Equalization, meanwhile, greeted news of his legal troubles with a sense of resignation.

“I’m sorry that it’s happened for government’s sake,” said board member Ernest Dronenburg, a Republican. “We already have enough problem with people’s lack of confidence in government.” He said however, he would reserve judgment on Bennett’s conduct until after the matter is handled in the courts.

Both Dronenburg and Board Chairman Brad Sherman, speaking through his chief of staff, said they think that Bennett should remain on the board while the criminal case is pending.

The charges against Bennett carry a maximum fine of $230,000 and a maximum prison sentence of six years. But because of Bennett’s age and previously clean record, the district attorney is not expected to seek jail time if he is convicted.

A conviction on any of the charges would, however, require Bennett to forfeit his office and his $95,052 annual salary. It also could pave the way for a Republican majority to take over the board, which administers the state’s business taxes and handles income tax appeals. If Bennett’s Northern California seat is vacated, Republican Gov. Pete Wilson would appoint his replacement.

The decision to file charges against Bennett apparently came after he had made several offers to settle the matter outside the criminal courts. Saying the discrepancies in his travel claims stemmed from poor bookkeeping, he tried to end the matter last summer by offering to reimburse the state $1,680.73. But the offer was declined and his check returned. As late as Wednesday, sources said, his attorney suggested the possibility that Bennett could resign in return for no criminal charges being filed. That offer, too, apparently was rejected.

White said the charges stemmed from a lengthy internal investigation that had been conducted by the attorney general’s office.

Bennett’s legal troubles come after a long and controversial career in which he sought to construct a reputation as a crusader for consumer rights and tough ethical standards. But his own actions often conflicted with the standards he espoused and made him a target of unflattering news stories and critical comments from other public officials.

A former World War II bomber pilot, Bennett was one of the bright young idealists who clustered around President John F. Kennedy in the early in 1960s.

For a short time in 1969, Bennett achieved national fame when he singlehandedly defeated an attempt by El Paso Natural Gas Co. to acquire a gas pipeline in California that would have given it near-monopoly status in the state.

He won election to the State Board of Equalization in 1970 and quickly established an ethical standard for himself that would set him apart from other elected officials--he refused to take campaign contributions.

But two years later, his reputation for integrity was questioned when a Capitol shoeshine stand operator accused him of trying to steal six newspapers. Bennett denied the accusation and the shoeshine operator did not press charges, saying publicity over the incident had been “punishment enough.”

Later, Bennett was criticized for a conflict of interest when he helped bring several lawsuits against a utility whose tax rates were set by the Board of Equalization.

Shortly thereafter, Bennett made national news when he drew attention to the fact that then-President Richard M. Nixon had not paid any California income taxes for several years. Accusing Nixon of “tax evasion,” Bennett tried to force the President to pay back taxes to the state, but his efforts were overruled by a Republican majority then on the board.

More recently, Bennett has been highly critical of former Board members Conway H. Collis and Carpenter for accepting campaign contributions from corporations and individuals who had business before the board.