Ex-Councilman, Firefighters Group to Pay Fines in Finance Probe

Rather than face misdemeanor criminal prosecution, a former city councilman and the Anaheim firefighters political action committee agreed Thursday to pay fines for violating city and state campaign contribution laws.

Former Councilman Frank Feldhaus will pay the city a $10,000 fine and the committee will pay $20,000. Under the settlement, criminal charges against Feldhaus and the committee will be dropped.

“This will send a message to everyone engaged in politics that no one is above the law and that if you engage in political activities, you must comply with the law,” said the city’s independent prosecutor, Ravi Mehta.

Mehta, former chairman of the state Fair Political Practices Commission, filed misdemeanor complaints in November alleging that the firefighters committee had failed to disclose information about contributions it made in the November 1996 council election. The committee was also accused of not filing a report about a $4,000 campaign contribution within the required period.

According to Mehta, in October 1996, Mayor Tom Daly agreed to pay a telemarketing firm $10,000 to conduct phone calls to solicit support for Feldhaus and Shirley McCracken.

Daly contacted the firefighters committee and former Councilman Irv Pickler for contributions to pay the telemarketing firm. Pickler sent a check for $3,000 to the telemarketing firm, the committee paid the firm $4,000 and Daly mailed another $3,000.

Mehta charged that the committee failed to report the $4,000 expenditure as a contribution to Daly’s campaign committee. The committee also was charged with not filing supplemental expenditure reports disclosing more than $10,000 in contributions to McCracken.

Feldhaus was charged with failing to report a number of contributions he received late in his campaign during the 1996 council race. Mehta also accused him of not identifying contributors on campaign reports, some of whom had affiliations with Walt Disney Co.

Feldhaus lost his bid for reelection, but McCracken won.

In a statement after the settlement was announced, the firefighters committee said the violations were “not willful and were not knowing.”

“The cost of defense and administrative distraction in this matter were significant factors in arriving at the settlement,” the statement said.

James Riddet, Feldhaus’ attorney, said, “It never should have been a criminal case and now it’s not going to be.”

Critics have said Mehta’s criminal complaints are overzealous and that the hiring of a special prosecutor is politically motivated.

Mehta called the charges significant violations of the state Political Reform Act. He has billed the city about $118,000 for his services from Oct. 1 to Dec. 31.

He also has filed criminal complaints against Daly, his campaign treasurer, Debra Daly, and Pickler for allegedly violating campaign laws. An arraignment is scheduled in Municipal Court in Fullerton on March 2.

In December, McCracken settled a civil lawsuit in which Mehta charged her with reporting errors. McCracken, who said they were honest mistakes, has paid a $6,500 fine.

At Tuesday’s council meeting, McCracken will ask the council to review its contract with Mehta.