Mall Firm Fined for Laundering Donations : Crime: Ex-manager of Northridge Fashion Center admits illegal contributions to Bernson and others.

The firm that formerly managed the Northridge Fashion Center has agreed to pay an $87,000 fine after admitting that it made laundered campaign contributions to local politicians in San Diego and Los Angeles, including a $2,000 donation to Los Angeles City Councilman Hal Bernson.

Bernson, who represents the Northridge area, was not accused of wrongdoing in an accusation filed against the Yarmouth Group by the state’s Fair Political Practices Commission, nor were the other lawmakers involved. Yarmouth is accused of making a total of $13,500 in illegal contributions to 11 lawmakers.

The New York City-based company advises shopping mall investors and manages mall properties throughout California. Until this year, it managed the Northridge Fashion Center.

According to a stipulated agreement that the FPPC is expected to approve at its April 7 meeting, Bernson received contributions of $500 from each of four employees of Yarmouth in May, 1990. All four, including one of the firm’s senior executives, Paul Wilson of Los Angeles, were subsequently reimbursed by the company.

It is illegal under the California Political Reform Act to hide the source of campaign contributions, a practice called laundering.

Additionally, Los Angeles campaign-finance rules prohibit contributions of more than $500 from one source to a candidate for elected office. The proposed FPPC settlement “only addresses the state law violations, not any possible violation of local ordinances,” said FPPC spokeswoman Jeanette Turvill.

“We can’t comment,” said Benjamin Bycel, head of the Los Angeles Ethics Commission, when asked if the commission, charged with enforcing local reform laws, would be investigating the Yarmouth matter.

Bernson aide Francine Oschin said the councilman would not be available for comment until Monday. But she said she had no knowledge of the contributions and was certain that Bernson granted the company no favors for its financial help. “I know Hal Bernson and he’s turned down campaign contributors time after time that were looking for help,” Oschin said.

Wilson, the Yarmouth executive, contended that the illegal way in which the contributions to Bernson and other lawmakers were made was the result of ignorance, not corrupt intent. “We were aware that the contributions had to be personal, not corporate, but we did not know that it would be wrong to be reimbursed,” Wilson said.

Wilson also said that Bernson and the other lawmakers were unaware of Yarmouth’s practice.

In the Bernson case, Wilson said, the contributions were made because “we felt he was a good councilman for the district and we should support him.”

“We had nothing on the table before him or the council,” Wilson added.

The FPPC stipulation also stated that Yarmouth made 44 illegal contributions, totaling $10,750, to eight San Diego City Council members and $750 to two San Jose council members.

In San Diego, the FPPC report noted that Yarmouth made its contributions between October, 1989, and March 24, 1993. In April, 1992, Yarmouth introduced a preliminary plan to expand its Fashion Valley Mall in San Diego. That project is still pending before the San Diego City Council.

San Diego and San Jose have laws barring single-source contributions greater than $250.