Posted on 05/05/2005 4:13:44 PM PDT by NormsRevenge
SAN FRANCISCO (AP) - The U.S. attorney's office on Thursday indicted Julie Lee, a top political fundraiser for former Secretary of State Kevin Shelley, for diverting $125,000 from a taxpayer-funded grant to Shelley's campaign coffers.
An FBI investigation led a federal grand jury to issue the seven-count indictment that charges Lee with four counts of mail fraud and three counts of attempted witness tampering, U.S. Attorney McGregor Scott said.
Lee's attorney, Steven Gruel, could not immediately be reached for comment, but last month she pleaded not guilty to related criminal charges in San Francisco.
The federal indictment alleges that Lee misused $125,000 of a $500,000 state grant intended for a San Francisco nonprofit that was never built. The charges say she instead used the money to make political donations to Shelley's 2002 campaign for secretary of state, federal prosecutors said.
Lee, a 58-year-old real estate agent and former city commissioner, allegedly attempted to cover up her misuse of the funds by creating false and misleading documents and lying to state auditors and investigators, according to the indictment. She also allegedly tried to persuade three witnesses not to cooperate with, or give false information to, federal agents.
"The conduct at issue in this prosecution is nothing short of reprehensible," Scott said. "The very notion of laundering state grant funds for a community center of all things and converting them to political campaign contributions is beyond the pale."
If convicted, Lee could face up to 20 years in prison and $250,000 in fines for each mail fraud count, and up to 10 years in prison and $250,000 in fines for each count of witness tempering, prosecutors said.
Lee, a native of Shanghai, became a political power broker in San Francisco's Chinese-American community. Last month, she pleaded not guilty to eight felony counts and two misdemeanors in San Francisco County Superior Court. She was released on $250,000 bail.
The criminal charges include four counts of grand theft, two counts of embezzlement, one count of forgery and one count of preparing false documentary evidence. The two misdemeanor charges involve alleged violations of the state election code.
Lee, one of Shelley's top fundraisers, also resigned last month from her position as a commissioner on the San Francisco Housing Authority. At the time, her attorney said the move should not be seen as an admission of guilt or wrongdoing, but to allow her to focus on fighting the charges.
In March, Shelley stepped down as secretary of state amid investigations into his handling of federal election funds and questionable campaign contributions.
Just another standard, corrupt liberal Demo-rat. Tried and true.
She will sing like a bird. Expect the charges against Shelley to start adding up with a big media surrender to authorities. Serves him right.
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