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LOS ANGELES : Companies to Pay $19,300 for Illegal Contributions

Two companies have agreed to pay a total of $19,300 in fines to the city of Los Angeles after conceding that they used intermediaries to illegally conceal the source of $3,000 in campaign contributions they made in 1991 to now-Councilman Mike Hernandez.

The city Ethics Commission is scheduled Thursday to consider settlements with Precision Engine Volume, which admitted it hid the source of $2,500 in donations, and with Borbon Inc., which admitted it hid the source of a $500 contribution.

Under the City Charter, individuals and companies are guilty of money-laundering if they use employees or others to disguise the source of campaign contributions.

In a proposed settlement, the Ethics Commission cited no evidence that Hernandez knew the contributions were illegal.

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