CA: FBI Presence Shadows Legislature's New Session (PeRataGate & ShmelleyGate)

LA Times ^ | 1/3/05 | Dan Morain

[NormsRevenge]

SACRAMENTO — For the first time since the Capitol's "Shrimpgate" scandal more than a decade ago, California legislators open their session today knowing that the FBI is hovering not far away.

By issuing subpoenas, conducting searches and convening grand juries in Oakland and Sacramento, the feds have made their presence unmistakable as they investigate dealings by the new state Senate leader, Don Perata, and Secretary of State Kevin Shelley, a former legislator. Both men are Democrats.

The scope of the inquiries, which are not connected, is not known. But interviews and documents that have become public suggest that the FBI is examining Perata's business and political activity in Oakland, his hometown, and Shelley's procurement of state money for a nonprofit group when he was an assemblyman from San Francisco.

Shelley's troubles revolve around a politician's stock in trade: delivering "pork barrel" spending to his district and collecting campaign donations from political supporters. And an aspect of the Perata inquiry involves something that hits home hard: family. Like many elected officials, Perata has family members — his son and daughter — who work on his campaigns.

Perata, confirmed last month by his fellow senators to be their leader, holds one of the most powerful posts in California government. Under the pressure of a criminal investigation, he will still be expected to help shape the state budget, exercise life-or-death power over legislation and raise campaign money for fellow Democrats.

Shelley, who is responsible for ensuring that California elections are fair and who had been a rising star, is so wounded that his political survival is in doubt, several experts said.

[goldstategop]

The Democrats are on the hot griddle. And the bad news is just around the corner.