Second Billboard Firm Accused of Ethics Violation

For the second time in as many weeks, the director of the Los Angeles Ethics Commission accused a billboard company Tuesday of not properly disclosing an independent expenditure campaign backing candidates in the 2001 election.

Executive Director LeeAnn Pelham issued a public accusation declaring she found probable cause to believe that Regency Outdoor Advertising Inc. and Brian Kennedy, one of Regency’s owners, violated the city’s independent expenditure and disclosure laws in 194 instances in connection with the company’s support of 2001 city candidates Tony Cardenas, Rocky Delgadillo, James K. Hahn and Jan Perry.

If the commission agrees the violations occurred, Regency and Kennedy could face maximum fines of up to $970,000.

The accusation states that in six cases Regency and Kennedy failed to report in a timely manner $49,896 in independent expenditures, and in 188 instances the two failed to include required disclaimers on their displays.

Last week, Clear Channel Outdoor agreed to pay $30,000 in fines for similar violations. The fine was ratified Tuesday by the commission.

Kennedy said any required disclosures were done within 24 to 48 hours after the deadline. “Did I do it on purpose? Absolutely not. I tried to do it right,” he said.

“They have the right to make the accusation, and I need to look at it and decide what to do, he said.”

Pelham declined to comment.