Firm Repaid Rep. Kim for Donations : Contributions: JayKim reimbursed the congressman and employees for money given to other candidates, records show. He denies intentional wrongdoing.
A month after taking office in January, freshman Rep. Jay C. Kim (R-Diamond Bar) stepped up to the microphone in the House of Representatives, denounced the “arrogant attitude” of his congressional colleagues and called for stricter limits on campaign financing.
A few weeks later, records show, Kim’s engineering corporation issued a $500 check reimbursing a company official for a personal campaign contribution she made to U.S. Sen. Phil Gramm (R-Texas).
“It’s a violation” if a corporation repays an employee for a federal campaign contribution, said Fred Eiland, press officer for the Federal Election Commission. He declined to comment on this case.
Federal election laws prohibit corporations from donating directly or indirectly to candidates for federal offices. In some cases, local ordinances also prohibit such contributions.
During the last four years, records show, JayKim Engineers Inc. reimbursed Kim on two occasions for personal contributions he made to other politicians--one a U.S. congressman, the other a City Council member in San Diego, where corporate contributions are prohibited.
In addition, state tax auditors recently alleged that the firm had improperly taken tax deductions on legitimate contributions the company had made to state and local politicians in 1989 and 1990. About $7,000 in political contributions to unnamed recipients was challenged by the auditors.
Kim blamed his staff for deducting the campaign contributions and said he would pay any back taxes he owes as a result.
He said he knows that “it’s wrong” to use corporation funds to reimburse employees for making political contributions and said he never intended to do so.
Records show that he has used corporate money to reimburse himself--and signed the checks.
The corporation repaid Kim in 1989 for his $2,000 donation to Rep. David Dreier (R-San Dimas). The Times obtained copies of Kim’s personal check to Dreier as well as a corporate check to Kim.
Kim said his contribution paid for a half-table of tickets to a Dreier breakfast fund-raiser.
He said he thought that the company check he signed was a year-end bonus for himself, even though attached to the check was a typed notation: “Support of Congressman David Dreier.”
A spokesman for Dreier said the congressman had no knowledge of the reimbursement.
On June 24, 1991, Kim wrote a $250 personal check to Wes Pratt, who was running for reelection to the San Diego City Council.
The campaign had sent Kim a letter informing him that only personal checks could be accepted. San Diego had banned political donations by corporations.
On this letter, obtained by The Times, Kim jotted and initialed a note to his staff: “Please write me a check for reimbursement.” A corporate check was issued to Kim the next day.
Kim said getting reimbursed for the contribution was “a mistake on my part.”
This March, two months after Kim was sworn in as a congressman, JayKim Engineers issued a check reimbursing the firm’s marketing director, Carmen Suarez, for a political contribution. Suarez also serves as Kim’s campaign finance committee chairwoman.
On March 19, Suarez wrote a $500 check to Gramm, who had recommended her for a job in the Clinton Administration. That same day, Suarez wrote a request for reimbursement “per Jay’s request and OK.” The company’s former chief financial officer, Fred Schultz, promptly wrote Suarez a check.
Suarez said she did not recall asking the company for reimbursement. She said she made the contribution because “I wanted to do it out of my own heart and goodwill for Phil Gramm.”
Gramm’s spokesman said he had no knowledge that Suarez’s contribution was reimbursed by JayKim Engineers.
Kim recalled talking to Suarez before she made a donation. “I said go ahead and donate it,” he said.
But the congressman said he did not authorize repayment by the company. He blamed the reimbursement on a miscommunication.
