GOP Strategist Pleads Guilty to Fraud, Election Law Counts

Powerbroker and Republican strategist James H. Lake pleaded guilty to wire fraud and election law violations Wednesday and pledged to “fully cooperate” with the independent counsel who is investigating former Agriculture Secretary Mike Espy’s relationships with large agricultural businesses and their lobbyists.

Lake, who had been California agriculture’s preeminent Washington advocate, said after the proceedings in federal district court that he had turned over about 20,000 documents to independent counsel Donald C. Smaltz concerning “every matter coming before my firm and the Department of Agriculture.”

But he emphasized that “there is nothing else hanging over my firm and myself” other than the one felony and two misdemeanors that he admitted. And, he added, “I have no knowledge of anything relevant to Mr. Espy.”

Many of the records reportedly pertain to Sun Diamond Growers of Pleasanton, Calif., a major agricultural cooperative that Lake has represented for 15 years. Smaltz asserted in court that Lake had participated in a complex scheme to raise $5,000 in illegal corporate campaign contributions for Espy’s brother, Henry, in conjunction with Richard Douglas, a senior vice president of Sun Diamond who supervised Lake’s work on behalf of the firm.

Sun Diamond and Douglas have denied wrongdoing.

Lake said that he had revealed the plot to Smaltz after the court-appointed counsel agreed to grant immunity to Lake and three associates that Lake had brought into the deception, including his two sons.

Subsequently, Lake said, Smaltz indicated that he intended to prosecute Robinson Lake Sawyer Miller, the prestigious advocacy firm that Lake helped found, and the firm’s parent company, Bozell Worldwide Inc., for Lake’s actions. Lake said that he then waived his immunity in exchange for Smaltz’s pledge not to charge the companies for Lake’s crimes, which he had concealed from his partners.

Charles G. Bakaly III, Smaltz’s deputy, declined comment.

Lake, who could face up to seven years in prison, will be sentenced at a later date.