Fund laundering described to jury

Sacramento Bee ^ | 8/31/5 | Herbert A. Sample and Dan Smith

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OAKLAND - An associate of indicted political fundraiser Julie Lee personally delivered a $25,000 campaign check he knew was laundered to Kevin Shelley at his San Francisco home in 2002, and told him to wait a few days before cashing it, according to grand jury transcripts released Tuesday.

Bowman Leong told the grand jury investigating Lee last month that Shelley, then an assemblyman seeking the post of California secretary of state, was expecting him in his Glen Park home. The two men, Leong testified, "spent probably about 10 seconds exchanging pleasantries, and then (Shelley) asked if I had something for him."

"I reached in my coat and took out the check. It was in an envelope," Leong continued. "He looked inside and just said 'thank you very much.' "

Democrat Shelley was not called to testify, has been charged with no crime and may not have even been interviewed by investigators from Democratic Attorney General Bill Lockyer's office and the San Francisco District Attorney's Office.

But Shelley, who resigned from his secretary of state post in February, is central to the story in the four volumes of grand jury transcripts that led to Lee's indictment on felony grand theft, embezzlement and forgery charges, stemming from her alleged funneling of campaign donations to him.

While the transcripts show that others received immunity from prosecution for their testimony implicating Lee, she has so far declined to cooperate with prosecutors, leaving open to speculation whether she has information that might implicate Shelley.

Shelley's lawyer, Matt Jacobs, said the transcripts provide no evidence that his client was involved in the crimes for which Lee is accused.

[SmithL]

Who does Shelley think he is, Hillary?

[SmithL]

ShmelleyGate Ping