Honig Being Investigated by State, Federal Grand Juries

Federal and state grand juries are investigating allegations that state Supt. of Public Instruction Bill Honig violated conflict-of-interest laws in dealings with his wife’s nonprofit business, Honig’s lawyer said.

Patrick Hallinan, one of the state’s top criminal lawyers, said Wednesday that Honig hired him after learning that a state grand jury had subpoenaed a former deputy superintendent.

Hallinan said a federal grand jury had subpoenaed a former employee of Honig’s reelection campaign.

California Atty. Gen. Dan Lungren is spearheading the state investigation, which stems from accusations that Honig improperly benefited financially by promoting his wife’s Quality Education Program within the state Department of Education, which he heads.

The U.S. attorney’s office in San Francisco has convened its own grand jury to look into the matter, Hallinan said. Assistant U.S. Atty. Floy Dawson, chief of the criminal division, is handling the case. He declined to comment.

Honig did not return telephone calls seeking comment Wednesday. But his lawyer said Honig felt frustrated and relieved when the grand jury investigation was confirmed.

“There’s a certain sense of relief in that we’re going to go to battle, resolve this thing. He’s confident he’s going to exonerate himself from any wrongdoing,” Hallinan said.

Honig and his wife, Nancy, have repeatedly denied any wrongdoing. The superintendent, a Democrat, has long attributed his legal troubles to political opponents in Sacramento. He has clashed with many conservatives on issues such as school choice and creationism in textbooks.

One of the two witnesses subpoenaed so far, former Deputy Supt. Jim Smith, left the department last fall. At the time, he wrote a memorandum that told staff members Honig ordered them to stop working on parent-involvement projects without the approval of Nancy Honig’s program.

The second witness is Katherine Brock, a former employee in Honig’s reelection campaign. She is alleged to have signed Honig’s name to a letter on state Education Department stationery requesting federal grant money for Nancy Honig’s Quality Education Program in 1989.