Group Calls for Inquiry on O.C. Businessman’s Financial Disclosure

A government watchdog group on Monday called for an investigation into whether Orange County businessman Gus Owen has properly disclosed his financial interests while serving as vice chairman of the Surface Transportation Board.

Owen, a Dana Point real estate mogul who is married to developer Kathryn G. Thompson, has served since 1994 on the federal agency formerly known as the Interstate Commerce Commission. His recent renomination is scheduled for a Senate Commerce Committee hearing March 10.

In a 12-page letter to Sens. John McCain (R-Ariz.) and Ernest F. Hollings (D-S.C.), the committee’s leaders, the director of the Congressional Accountability Project raises questions about whether Owen “has improperly engaged in business and lobbying activities which are incompatible with his government service.”

Specifically, director Gary Ruskin questions:

* Whether Owen’s partnership in Brook Park West in Buena Park and involvement in CMOW Corp. and other companies violate the prohibition on full-time federal commissioners earning income from outside employment, or take too much time away from his government duties.

* Why Owen remained as “president,” “owner,” or “chief executive officer” of Owen Properties Inc. after saying before joining the board that he would resign the post if confirmed.

* If Owen’s role running Fairness for Small Business--a coalition organized to help companies benefit from deregulation of the electric utility industry--presented a conflict of interest.

* Owen’s statements that he is not involved with Thompson’s business holdings, in light of California business records showing they are partners in a company called Pacific Argonaut II.

* Why some business positions listed in state records were not disclosed in Owen’s federal filings.

Owen did not return a call to his Washington office Monday afternoon.

STB spokesman Dennis Watson said the letter “is just part of the confirmation process,” and refused to address the allegations.

Pia Pialorsi, a spokeswoman for the commerce committee, said Senate staff would look into the allegations and give Owen a chance to respond at the March 10 hearing. “We obviously take the advice and consent role [on federal appointees] very seriously, so we’ll be looking into this,” she said.

“Any time anyone makes allegations about anyone, there’s always a desire to learn more,” said Hollings’ aide Maury Lane. “But just because someone writes us a letter and says things about someone, we’re not going to jump to conclusions.”

Owen, a former chairman of the conservative Republican Lincoln Club, joined the ICC in 1994, even as it was being disbanded, but ended up staying on with the revamped STB. Though he is up for another term, he said in 1996 that he “only came to serve for a couple or three years, not a career,” and has pushed for term limits on federal commissioners such as himself.

“My time limit is to go home tomorrow,” he joked, but added, seriously, that he would definitely return to California when his term expired at the end of 1997.