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CA: Attorney general sues to dissolve nonprofit linked to controversy (Shmelleygate)
Bakersfield Californian ^ | 10/29/04 | AP - San Francisco

Posted on 10/29/2004 7:48:12 PM PDT by NormsRevenge

SAN FRANCISCO (AP) - State Attorney General Bill Lockyer filed suit Friday to shut down a nonprofit group accused of illegally funneling taxpayer money into Secretary of State Kevin Shelley's campaign coffers.

The lawsuit, filed in San Francisco County Superior Court, seeks to dissolve the San Francisco Neighbors Resource Center. It claims the group improperly diverted at least $168,750 in charitable funds to make $125,000 in donations to Shelley's campaign in 2001 and 2002.

When Shelley was majority leader of the state Assembly in 2000, he helped arrange a $500,000 state grant for the center, which was founded in 1999 by San Francisco real estate agent Julie Lee to provide bilingual education and other services for youth and seniors.

Lockyer's office, which began investigating in August, said it determined that the center disbursed $168,750 to five individuals and businesses for work related to construction of the center, which was never built. Each of the recipients gave to Shelley's campaign in amounts similar to checks they received from the nonprofit.

Lee's attorney, John Burris, said he hasn't seen the complaint but that he was disappointed the attorney general decided to file suit.

"This resource center was put together for good purposes to service the community," Burris said. "It could still do good things if it were allowed to exist."

The campaign contributions also are the subject of various state and federal investigations. Shelley also is being investigated for how his office disbursed federal election funds.


TOPICS: Crime/Corruption; Government; Politics/Elections; US: California
KEYWORDS: attorneygeneral; calgov2002; california; controversy; dissolve; julielee; lockyer; nonprofit; shelley; shmelleygate; sues

1 posted on 10/29/2004 7:48:12 PM PDT by NormsRevenge
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To: NormsRevenge

"This resource center was put together for good purposes to service the community," Burris said. "It could still do good things if it were allowed to exist."

Translation, sure we're doing something illegal. But we can still make people (Democrats) feel good!


2 posted on 10/29/2004 7:52:15 PM PDT by Simmy2.5 (Kerry, because we should be U.N. Cool!)
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