Indicted lawmaker leaves fate of a half million dollars unclear

A small part of more than $800,000 that was parked in campaign accounts controlled by indicted or convicted California lawmakers is making its way back to contributors, but more than half a million dollars remains missing.

At the time of his arrest on bribery and corruption charges in March, Sen. Leland Yee (D-San Francisco) had $134,000 cash in his secretary of state campaign account and had weeks earlier sent more than $518,000 to a Los Angeles media agency for future campaign commercials.

Campaign finance reports filed with the state by Thursday’s reporting deadline show the indicted lawmaker had reduced that account to just over $29,000, returning checks for nearly $20,000, and paid bills, including a small check to his criminal defense lawyer.

The paperwork doesn’t disclose the fate of more than $518,000 that Yee’s campaign spent on commercials for his aborted campaign.

Yee’s criminal defense lawyer, James Lassert, his former campaign advisor, Richie Ross, and his current campaign treasurer, Jim Sutton, did not return calls to their offices. Nor was there a response to multiple phone calls and email messages to principals at Milner Butchner Media, the recipient of that money.

Though Yee’s name remains on the ballot in next month’s primary, he withdrew from the race in March.

A spokesman for the Fair Political Practices Commission said the campaign watchdog agency has little say over what happens to the unspent media money.

“That’s really a contract decision,” said Jay Wierenga.

Records show Yee held a fundraiser in Los Angeles the night before he was arrested, and checks continued to come in to the account afterward. Among them was $1,000 from Huasha Liu, director of land use and environmental planning for the Pasadena-based Southern California Assn of Governments.

Liu declined to discuss the donation. She responded to questions with a brief email that said the “$1,000 was fully returned to me.”

Liu said she had not requested the refund, nor had she expected it.

Other checks were returned without being deposited.

Several of Yee’s Senate employees received payments for campaign expenses.

They included Yee’s former chief of staff in the Senate, Jordan Curley. She left Yee’s office days after the arrest to take a job as a “strategist” for a Sacramento campaign consulting firm.

Expense checks included $500 to Paul Demeester, a longtime friend who stepped in as Yee’s first lawyer when he was arrested.

Yee also spent down his much smaller Senate campaign and officeholder accounts.

Wierenga said candidates facing criminal charges are free to use those funds for attorney fees, including their legal defense if the crime is related to political office. That includes campaign contributions the FBI alleges were bribes.

A federal criminal complaint and indictment outline some $76,100 in alleged payments intended to influence Yee, including a $5,000 fundraiser attended by at least nine undercover agents. Less than $17,000 of the payments could be identified by The Times in Yee’s campaign finance reports. None of that money was returned.

Wierenga said state law will require Yee to close down his campaign-related accounts by June 30. He said refunds to contributors are allowed, but not required. Leftover cash can be directed to political parties, charities or debts.