No State Probe of Carona Campaign

California Atty. Gen. Bill Lockyer’s office on Friday declined to investigate allegations that a Newport Beach businessman illegally funneled campaign contributions to Orange County Sheriff Michael S. Carona, saying the matter is best handled by local prosecutors.

Carona had asked both Lockyer and Orange County Dist. Atty. Tony Rackauckas to look into reports that Charles H. Gabbard persuaded dozens of investors in his company to contribute $1,000 each to the sheriff’s 2002 reelection campaign in exchange for company stock. Such an exchange would violate state campaign-finance law.

Gabbard and his company, CHG Safety Technologies, are at the center of concerns that have surfaced since the sheriff fired a top aide, George Jaramillo, who had worked for Gabbard as a consultant in 2000 and 2001.

Jaramillo has not been accused of wrongdoing, but the Orange County Grand Jury and the FBI have started preliminary investigations into allegations of influence-peddling in the Sheriff’s Department.

Representatives of the attorney general’s San Diego office met this week with Rackauckas and two senior assistants to determine whether there were conflicts of interest that might prevent the district attorney’s office from conducting any such investigation.

“We reviewed the matter and determined it was not a conflict,” said Gary Schons, a senior assistant attorney general who supervises the San Diego office.

Political watchdogs have questioned whether the district attorney’s office can pursue an unbiased investigation of the Sheriff’s Department. The sheriff and chief prosecutor, are Republicans and allies who share some political and financial supporters.

Nathan Barankin, spokesman for the attorney general’s office, said fundraising by Carona on the district attorney’s behalf does not constitute a legal conflict for Rackauckas.