Panel Alleges Ethics Breach

The director of the Los Angeles Ethics Commission on Monday accused attorney Pierce O’Donnell and employees of his firm of laundering $25,500 in political contributions to Mayor James K. Hahn’s 2001 election campaign.

The seven-page administrative accusation by Executive Director LeeAnn Pelham alleges that O’Donnell had 22 people, including employees of his law firm -- O’Donnell and Shaeffer -- and their relatives, make 26 contributions to Hahn’s campaign, and then O’Donnell reimbursed them.

The charges come a week after the state Fair Political Practices Commission named the prominent attorney in 26 civil counts of laundering political contributions to Hahn involving the same donations. The Los Angeles County district attorney’s office has also filed 26 misdemeanor charges in the same case.

Pelham also alleges that O’Donnell made a $25,000 independent expenditure on a mailer supporting Hahn without properly reporting it to the city panel.

If the Ethics Commission determines that all of the violations occurred, O’Donnell and the others could face fines of $385,000.

O’Donnell has said the proper forum for the matter is an administrative process, such as the Ethics Commission review, rather than criminal court.

“We will continue to cooperate fully with the agencies involved and are looking forward to a quick resolution,” O’Donnell said in a prepared statement.

The Ethics Commission did not allege any wrongdoing by the Hahn campaign, and a spokesman for the mayor said the campaign was unaware that any contributions had been reimbursed.

“Nobody had any idea that this was going on,” said Bill Carrick, a Hahn campaign consultant. “It’s sad.”

While the state charges involve violating state law on money laundering, the city allegations involve the prohibition on making a contribution in the name of another person, as well as the $1,000 limit on campaign contributions from individuals.

O’Donnell faces 26 counts of making contributions to Hahn in the name of another person, and two counts of exceeding the contribution limit in checks provided to Hahn and the city attorney campaign of former councilman Mike Feuer.

In addition, 22 others were accused of accepting reimbursements for contributions they made to Hahn.

Pelham issued the public accusation based on an investigation by the Ethics Commission staff.

O’Donnell can ask the Ethics Commission to hold a hearing and rule on the merits of the accusations or submit the matter to an administrative law judge to rule on the merits.