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Secretary of State Bruce McPherson demanded Monday that the state sue his predecessor, Democrat Kevin Shelley, to recover nearly $3 million in federal funds that were misspent or mismanaged. McPherson, in a letter to Attorney General Bill Lockyer, said it is "imperative that you bring legal action at once." "It is wholly unfair and unacceptable that the taxpayers of California would be required to lose funds" due to the "documented misconduct and mismanagement of Kevin Shelley." McPherson said he was reacting to a ruling Monday by the U.S. Election Assistance Commission that requires California to repay $2.92 million in federal...

WASHINGTON (AP) - The federal agency that oversees election preparations has decided to release nearly $170 million to California that was potentially in jeopardy because of questions over how federal money was spent under former Secretary of State Kevin Shelley. The U.S. Election Assistance Commission sent a letter Wednesday to California Secretary of State Bruce McPherson, Shelley's replacement, to announce the release of the $169.7 million, commission spokeswoman Jeannie Layson said Thursday. The move followed a visit McPherson paid to the commission last month to lobby for the money - Californias 2004 share of some $3 billion being sent to...

Some senators expect secretary of state, probed over use of federal funds, to resign. Sacramento -- One of the Legislature's highest-ranking Dem- ocrats suggested Monday that embattled Secretary of State Kevin Shelley should resign, a dramatic sign that support from Shelley's own political party is quickly evaporating. State Senate Majority Leader Gloria Romero, D-Los Angeles, told The Chronicle she expects Shelley to resign and that it would be better for the party if he did. She questioned whether he can effectively run elections in California. Shelley faces multiple investigations about a fund-raising scandal and allegations of misconduct in office. He...

Bay Area community groups say they have been forced to scale back voter-outreach plans after federal funds they hoped to receive became entangled in the controversy surrounding Secretary of State Kevin Shelley. In late August, Gov. Arnold Schwarzenegger's administration froze $17.5 million in federal voter funds until an audit determines whether Shelley properly spent previously distributed money. Shelley, a Democrat from San Francisco, has come under fire after he hired political allies and Democratic Party activists with some of the money.

SAN FRANCISCO - Top deputies to Secretary of State Kevin Shelley were informed that consultants hired to do nonpartisan voter education work were attending Democratic events on his behalf and attempting to boost his public image, according to documents obtained by a newspaper. Memos titled "Week-Ahead Reports" show that top officials in Shelley's office were routinely informed of the contractors' upcoming schedules and plans, the San Francisco Chronicle reported. A "Democratic Club" luncheon and efforts to "get exposure for KS (Kevin Shelley) in Southern California" were among activities mentioned in the memos. The newspaper's report is the latest revelation in...

Sacramento -- Two witnesses told federal prosecutors Thursday that they provided signed blank checks to people who later gave them to Kevin Shelley's 2002 secretary of state campaign, in return for reimbursement from a taxpayer- funded San Francisco nonprofit organization, according to sources familiar with the case. At the time of the donations, neither Steve Chen nor Joseph Chen, the two witnesses who testified before a federal grand jury under grants of immunity, knew who Shelley was, according to a lawyer for one witness and another source familiar with the statements given to the government.

Secretary of State Kevin Shelley made crude gestures and sexually related comments to an employee last year, according to a complaint filed by the former aide. The internal complaint stated that Shelley allegedly made hand gestures relating to masturbation, asked about the aide's sexual orientation and made references to the genitalia of the aide's ex-husband. The complaint, submitted on Nov. 10, 2003, was one of three the former aide filed that month alleging inappropriate behavior by Shelley. Carol Dahmen, Shelley's spokeswoman, said there would be no comment from Shelley, who has returned from vacation, or from Mark Kyle, his chief...

Secretary of State Kevin Shelley received $30,000 in donations to his 2002 campaign from a 62-year-old foster-care provider who said Friday that the money was tied to a home purchase from Julie Lee, the president of a nonprofit who is under fire for a series of questionable political contributions. State records show Eliana Maldonado wrote checks for $10,000 and $20,000 to Shelley on Sept. 27, 2002. Four days later, Maldonado took ownership of a three-bedroom, three-bath house from Lee and her husband, Shing Kit. The San Francisco Chronicle reported Friday that Patrick K. Hsu, a 69-year-old retired state worker, said...