Opponent Asks U.S. to Probe Firm’s Role in Kim Campaign

The Federal Election Commission was asked Wednesday to investigate the 1992 congressional campaign activities of Rep. Jay C. Kim (R-Diamond Bar) to determine whether he improperly used corporate funds to pay for campaign staff, supplies and office space.

The request was filed by Yorba Linda attorney James V. Lacy, whom Kim defeated last spring in a tight primary race for the 41st Congressional District seat.

In a notarized complaint, Lacy said he believes Kim violated campaign laws that prohibit corporations from contributing money or services to federal campaigns. He cited an article in The Times on Wednesday reporting that the congressman improperly used hundreds of thousands of dollars from his engineering corporation to pay campaign expenses last year.

“He bought this election lock, stock and barrel in flagrant disregard of the law. . . ,” Lacy alleged in an interview. “There was no level playing field” in the election.

Lacy said that Kim avoided public disclosure of his true campaign costs by using corporate funds to pay campaign expenses, giving him an improper advantage.

If he had known Kim was spending so much, Lacy said, “I might have made different decisions about my own expenditures.” Lacy finished third in the June primary, with 27% of the vote compared to Kim’s 30%.

A complaint to the FEC automatically sets off a review of the matter by commission attorneys in Washington. Their findings are forwarded to the six-member commission, which decides whether to open a formal investigation. Violations of election law can result in civil and criminal penalties.

In Los Angeles, Assistant U.S. Atty. Michael Emmick, head of the office’s corruption and government fraud section, said he will perform “a detailed technical analysis” to determine whether Kim’s campaign spending warrants an investigation by his unit.

Kim, 54, did not return phone calls Wednesday, but his chief of staff, Sandra Garner, told the Associated Press that Kim asked his campaign staff to find someone to conduct an “independent outside audit” of the alleged campaign spending by Kim’s firm.

“He wants to get the facts and make sure all rules and laws have been observed,” said Garner.

Records and interviews show that JayKim Engineers Inc. provided Kim’s campaign with free office space, plus staff and office supplies. The firm also paid Kim’s salary and expenses during the 1992 election, and paid campaign bills ranging from airline tickets to telephone service.

The expenditures were not publicly disclosed.

Jane Mentzinger, vice president of Common Cause in Washington, said the article “raises some very serious questions . . . that the FEC should look into.”

Donna Edwards, staff attorney for Public Citizen, a Washington-based consumer advocacy organization founded by Ralph Nader, said, “What was described (in the article) is just wholly and completely illegal. Certainly, this . . . is one of many avenues to try to skirt the campaign finance law. The bottom line is corporate contributions are illegal.”