Investor Leeor Maciborski has been handed over a $17,000 fine by Los Angeles City Ethics Commission on charges of writing multiple checks through a number of companies. The money helped to elect Mitch O'Farrell to the Councilman post. Checks were routed through LLCs which were link to apartment buildings situated in Los Feliz and East Hollywood. Most of these companies shared identical majority members.
It was discovered by city investigators that these donations contravened financial restrictions. The latter limited the amount each contributor can donate to each candidate. It was found that city restrictions were exceeded by a whopping $3,000. The question of finding out these anomalies after a long time is not surprising. It can be extremely hard to find out the person making the contributions when that person does that while hiding behind business entities. A number of business entities, specifically privately held, small LLCs do not have the compulsion to report the names of their owners. There is also no need to state whether they are following the rules or not.
Jessica Levinson, the commission President, has made no secret of her being uncomfortable with the illegal use of LLCs. Describing them as illegal pass- through, she expressed the apprehension that donations like these may threaten fairness of campaigns.
Hard to trace
Tony Arranaga, the spokesman for O'Farrell, said that the councilman was unaware that the donations could have originated from same source prior to Ethics Commission making a thorough examination of them. She added that the campaign staff hand managed the donor documentation and fund raising four years before. When questioned, both Jane Leiderman and Maciborski declined to comment. Leiderman served as O'Farrell's treasurer during the campaign.
The Ethics Commission fined Jimmy Blackman, the ex-City Hall aide and present day lobbyist about $22,500 for contravening the “revolving door” rules which limit how and when the former city officials could make an attempt to influence city decisions. This is important as Blackman was given money to advocate for firefighters' union. He has multiple times contacted city officials to inform them the position of the union on the budget issues. This violated the city rules as it occurred within a year of Blackman exiting his city position. The commission also levied a $15,000 fine on Dr. Feliciano Serrano. The owner of Serrano Kidney and Vascular Access Center located in Huntington Park on charges of failing to maintain the proper records.