Holden to Pay $6,500 for Ethics Violations

City Councilman Nate Holden was found guilty by the Los Angeles Ethics Commission Tuesday of 31 campaign violations involving his 1999 reelection drive, but escaped a heavy fine.

On a vote of 3 to 2, with Chairwoman Miriam Krinsky holding out for a $30,000 fine, the commission voted to fine Holden and his campaign treasurer, Anne Froelich, $6,500.

Commissioners Dale Bonner, David W. Fleming and Pam Emerson said they believed that despite past violations by Holden, the latest infractions were technical and unintentional.

Holden, who had complained during months of contentious proceedings and the more than 20-hour hearing that he had been targeted for discriminatory action, called the outcome a victory and said the Ethics Commission should change its policies and not so aggressively pursue “bookkeeping errors.”

But commission Executive Director Lee Ann Pelham expressed deep disappointment.

“Unfortunately, the low fine the majority chose to impose in this case suggests that violating the law comes with little real consequence for those found guilty,” Pelham said in a written statement handed out after the hearing.

The other commissioner who favored heavier fines was Richard Walsh, head of the Los Angeles County Bar Assn.

He and Krinsky were outspoken in their belief that the commission was doing a disservice.

“It’s a sad message we are sending tonight,” Krinsky said just before the vote. “Candidates will have no incentive to observe the law. It’s a bad message for the citizens as well.... It may well undermine our laws.”

Walsh, who said he wanted a fine of $25,000 to $30,000, said he “vigorously” dissented from the $6,500 fine, because he thought Holden’s light punishment would create a bad precedent.

The staff member who prosecuted the case, Deena Ghaly, repeatedly told the panel that Holden has a record of campaign violations stretching over four elections. She said he was fined $27,000 for 41 violations in his 1995 reelection campaign.

Throughout his career, she said, Holden has compiled a record of taking money beyond permissible campaign limits 334 times, a total of $164,789.

The commission majority, while joining in the unanimous verdict that Holden was guilty of 31 violations this time, including 11 excessive donations and 20 duplications of applications for city matching funds, maintained that the violations were unintentional.

“If there had been proof of bad intent, I would have joined in wanting higher fines,” Fleming said. “But this was mistakes, not intent.”

Bonner said, “We have an obligation to look at specific facts of the case. This is not a case to send a message.”

Emerson said she agreed that “a very large fine is not appropriate.”

She proposed the successful motion that Holden reimburse the city $4,500 and pay a $2,000 fine.

Tuesday’s hearing began at 8:45 a.m. and continued until 8:15 p.m.

Holden was there throughout the proceedings, along with Froelich.

Holden did most of the talking for the defense, spiritedly contending that as soon as he learned there may have been violations of campaign laws, after his reelection campaign was over, he had ordered a “re-audit” and had returned most of the money he was not entitled to.

Earlier, he said, “I was not the captain of the ship,” because he was campaigning and didn’t know what his staff was doing.

Ghaly scoffed at that. Holden, she said, “is a tough, charismatic figure” who runs everything in his office and must take responsibility for any violations.