Judge Backs Charges Against Donor

A judge refused Thursday to set aside charges that attorney Pierce O’Donnell laundered political contributions to James K. Hahn’s 2001 campaign for mayor of Los Angeles, but dismissed accusations against six of O’Donnell’s employees and associates that they participated in the scheme.

Superior Court Judge Ann I. Jones concluded that the statements five of the co-defendants gave to the district attorney’s office under a grant of limited immunity were improperly used in deciding to file criminal charges.

Jones dismissed charges against a sixth co-defendant, saying the state Political Reform Act does not provide for charges of aiding and abetting, but she let the charges stand for a seventh co-defendant.

“I am gratified that Judge Jones’ ruling today has vindicated my friends and colleagues,” O’Donnell said in a statement.

The author of five books, O’Donnell has, over the years, represented a host of high-profile clients, including Lockheed Martin, MGM and the cities of Pasadena and Anaheim.

The case against him is one of three major cases involving political money laundering allegations connected to the 2001 mayoral race.

The dismissals were a setback to Dist. Atty. Steve Cooley’s aggressive pursuit of political corruption cases.

“We disagree with the judge’s ruling dismissing the remaining defendants and will consider our options on appeal,” Cooley said. “The state has an overriding public interest in protecting the integrity of the electoral process from corruption at the municipal level.”

Cooley added he was pleased with the decision on O’Donnell, saying that case “is well founded in the law.”

Prosecutors allege that O’Donnell gathered $25,500 in donations for Hahn’s campaign from others and then reimbursed them.

Sworn statements made part of the court record quote current and former employees of O’Donnell as saying they were asked by an O’Donnell assistant to contribute after Hahn attended a fundraising reception at the firm’s law offices. Three employees whose statements were filed with the court admitted O’Donnell reimbursed their contributions to Hahn.

The mayor has said he had no knowledge that contributions were laundered.

O’Donnell plans to appeal Jones’ decision.

His attorney, George L. O’Connell, said the allegations involve a local election so charges should be brought under city ethics laws. The local law has a two-year statute of limitations, which has expired. The district attorney’s office filed charges under state law, which has a four-year statute of limitations.

“It is our view that the city’s charter provisions of a shorter statute of limitations and lesser penalties do not supersede more stringent state law,” Cooley said.

Jones, in her 22-page decision, agreed. Jones did not dismiss charges against David Bernstein, O’Donnell’s personal trainer, because he had not provided immunized testimony.

Charges of serving as conduits for O’Donnell’s contributions were dismissed against: Dolores Valdez, who is O’Donnell’s secretary; Linda Fraser, a paralegal; Hilda Escobar, a legal secretary; Neil Sacker, an attorney; Else Latinovic, the office administrator; and Anita Latinovic, Else’s mother.

Deputy Dist. Atty. Juliet Schmidt said she used the sworn statements to judge the veracity of the defendants in deciding whether to charge them and did not intend to use them in trial.

But Jones said she was “very troubled” that prosecutors had used the statements to decide whether to bring charges. “This court finds these admitted prosecutorial uses of immunized testimony flatly contrary to the protections expected and afforded under the privilege against self incrimination,” she wrote.