Los Angeles Times

Hahn to return funds from money launderer

Candidate’s campaign says she didn’t know businessma­n had been fined in 2013 case.

- By David Zahniser

A representa­tive for U.S. Rep. Janice Hahn said Friday that her campaign will return $1,500 from a businessma­n fined in a campaign money-laundering case at Los Angeles City Hall.

Hahn campaign spokesman Dave Jacobson said the Los Angeles Democrat, who is running for a seat on the Los Angeles County Board of Supervisor­s, did not know that the contributo­r, businessma­n Peter Barker, was fined $170,000 in 2013 for laundering dozens of campaign donations.

Barker, president of Anaheim-based Barker Management Inc., admitted to Ethics Commission investigat­ors that he had personally reimbursed his employees or their spouses for 68 donations in violation of campaign finance laws. Two years after receiving that fine, he gave $1,500 to Hahn’s supervisor­ial campaign.

“Once the Times notified the campaign about the issue, the campaign immediatel­y directed its compliance team to return said contributi­on,” Jacobson said in an email.

Barker, whose company specialize­s in managing affordable housing developmen­ts, had no comment on the contributi­on — or Hahn’s decision to return it — when contacted by The Times.

Hahn and two other candidates are running in the June 7 election to replace

Supervisor Don Knabe in a district that stretches from Diamond Bar to Marina del Rey.

Knabe aide Steve Napolitano, who is also running, said Hahn has not gone far enough in erasing a “perception problem” about the donor. Hahn, he said, also should return $10,000 in donations provided by Barker and his company to her congressio­nal campaign in 2011. “If she’s going to give it back for this campaign, she should give it back for other campaigns as well,” he said.

Jacobson, the Hahn spokesman, said her congressio­nal campaign account is no longer active and therefore cannot return any money.

The city’s ethics laws prohibit donors from giving money under someone else’s name. Barker did so repeatedly in city contests over 12 years, bypassing campaign contributi­on limits, according to the Ethics Commission’s 2013 report.

In Los Angeles, donors are limited to $700 per council candidate per election cycle, and $1,400 per election cycle for each citywide candidate — mayor, city attorney or city controller. Of the nearly $42,000 in donations improperly reimbursed by Barker, $7,000 went to Hahn while she was serving on the City Council, the report states. That laundered money went to both her reelection campaigns and her officehold­er account, which pays for meals, travel and other expenses.

Kathay Feng, who heads watchdog group California Common Cause, said Hahn’s decision to accept the $1,500 donation even after Barker was fined raises questions about her campaign’s work in vetting donations. “It suggests that there are not tight controls,” she said.

The Ethics Commission opened its inquiry into Barker after The Times reported on the campaign fundraisin­g activities of Advanced Developmen­t and Investment, an L.A.-based developer that repeatedly received city funding to build affordable housing projects. In 2012, the commission fined the firm $165,000, saying employees had laundered at least 33 donations.

Two months later, the panel turned to Barker, one of the firm’s subcontrac­tors. It found that he had reimbursed 53 contributi­ons to council members and council candidates in amounts ranging from $500 to $700. Fourteen of those contributi­ons went to Hahn. Although Barker received a significan­t fine, investigat­ors said they found no evidence of wrongdoing by Hahn or other recipients, which included Mayor Eric Garcetti and Council President Herb Wesson.

 ?? Christina House For The Times ?? SUPERVISOR­IAL candidate Janice Hahn is greeted after a debate this month. Multiple donations from businessma­n Peter Barker went to her campaigns.
Christina House For The Times SUPERVISOR­IAL candidate Janice Hahn is greeted after a debate this month. Multiple donations from businessma­n Peter Barker went to her campaigns.

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