Tribal Leaders Lose Round in Campaign Gifts Case

A federal judge refused Monday to dismiss criminal charges against two executives of the Cabazon band of Mission Indians in Indio for allegedly conspiring to defraud the Federal Election Commission.

Mark Nichols and Greg Cervantes were accused in an indictment last year of using conduit donors to funnel thousands of dollars in tribal funds to six Democratic candidates, including President Clinton and Sen. Dianne Feinstein.

Federal election law bars individuals from donating more than $2,000 to any candidate. In December, U.S. District Judge Audrey B. Collins dismissed the bulk of the indictment--13 felony counts accusing Nichols and Cervantes of causing the candidates’ campaign committees to give false information to the FEC about the true source of the contributions. The government says there is no evidence that the candidates were aware of any impropriety.

Collins said the federal law governing campaign donations is ambiguous about the definition of contributor--whether it means the original source of money or the person who writes a check to a political campaign.

In the wake of its earlier setback, Monday’s ruling was an important victory for the prosecution, keeping alive a felony case against the two defendants. Nichols and Cervantes each also face two misdemeanor election law counts.

Their trial was put on hold Monday while the government appeals Collins’ dismissal of the 13 counts. Defense lawyers said they may appeal the latest ruling.