Migden agrees to $350,000 FPPC fine

State Sen. Carole Migden and her managers have agreed to pay a $350,000 fine for 89 campaign spending and disclosure violations between 2003 and 2007, including illegal personal use of campaign funds.

The state's Fair Political Practices Commission on Tuesday released details of the San Francisco Democrat's transgressions, which also included misrepresenting spending, soliciting donations prior to establishing campaign accounts and failing to adequately disclose contributions and expenses.

The fine is the FPPC's biggest ever for an individual, topping a $263,000 penalty against former Lt. Gov. Cruz Bustamante. The action comes as Migden is locked in a tough re-election battle, facing two fellow Democrats in the June 3 primary, Assemblyman Mark Leno of San Francisco and former Assemblyman Joe Nation of San Rafael.

"A significant fine clearly can have a major impact on a political race," said Tony Quinn, an editor of the California Target Book, which handicaps political races. "The voters say, 'Gee, what's going on here?' "

The senator, who revealed last year that she had been in a 10-year battle with leukemia, could not be reached for comment Tuesday. Her attorney, James Harrison, said Migden initiated a review of her campaign accounts after the FPPC issued a $110,600 fine against her in 2006 for separate campaign violations.

"It's a textbook example of what we should expect from our elected officials. … She was battling cancer at the time and she didn't pay attention as she should have," Harrison said. "Ultimately, she understands the buck stops with her."

The violations span Migden's time in the Senate and before that, the Assembly and Board of Equalization. Roger Sanders, who was Migden's campaign treasurer, and one of Migden's aides, Eric Potashner, were also named as respondents in the FPPC documents. Harrison said Migden will pay the entire fine herself.

The commission will consider the fine in an emergency session Thursday.

The 35-page FPPC report says Migden on eight occasions between 2005 and last June spent a total of $16,317 in campaign funds that "conferred a substantial personal benefit" to her without having a reasonable "political, legislative or governmental purpose" as required by law.

Details of Migden's personal spending were not included, though the information may be released later. "It's still a pending issue until the commission formally accepts or rejects the stipulation," said FPPC spokesman Roman Porter.

In addition to airfare and hotel stays, Migden has used campaign credit cards to make purchases at Nordstrom, Neiman Marcus, and Tiffany & Co., among other high-end retailers, according to her campaign disclosure reports.

Harrison, her attorney, denied the senator benefited personally, saying campaign spending laws allow candidates to buy gifts.

"Some of it fell within a gray area, and Senator Migden concluded it was best to repay them," he said. "In other instances, she just pulled out the wrong credit card."

Under law, which allows the agency to levy $5,000 per count, the FPPC could have fined Migden $445,000 for the 89 counts, but she, Sanders and Potashner stipulated to the $350,000 fine. Migden has paid $100,000 out of her own pocket, but it's unclear whether she will use campaign money to cover the remaining fine, her attorney said.

Candidates are allowed to use campaign funds to pay fines if they are related to the committee.

As of the end of 2007, Migden had about $1 million in three campaign accounts. But recently the FPPC ruled that she can't spend $647,000 in political contributions she raised before being elected to the Senate. Chairman Ross Johnson said Migden has already illegally spent $400,000.

Sanders could not be reached for comment and is no longer the senator's treasurer. Potashner remains on Migden's staff but did not return a call for comment.

Migden's latest violations involve these campaign accounts:

• Carole Migden Leadership Committee (six counts). The senator used her Board of Equalization committee account after it should have been closed, and she failed to properly disclose spending and transfers.

• Friends of Carole Migden (22 counts). She failed to report transferring $265,000 from her 2004 Senate committee, and she did not reveal bank and credit card charges.

• Re-Elect Senator Carole Migden (61 counts). Migden solicited contributions before filing candidate paperwork, failed to properly disclose contributions, understated cash payments, did not show receipts, failed to disclose expenses and spent money on personal use.

Last November, Leno accused the incumbent senator of charging $397,000 in political expenses without disclosing who was initially paid and for what, as required by campaign finance laws. He also objected to the transfer of funds among her campaign committees.

Migden fought back, filing a lawsuit against the FPPC. She said she should be entitled to use the money for her current campaign because the mistakes stemmed from the use of volunteer bookkeepers unfamiliar with all of the state's finance reporting requirements.

The fine, if approved, would be the largest against a state official in the FPPC's three decades of existence.

However, larger fines have been imposed on committees. For example, an $808,000 penalty was levied on a campaign committee that tried to recall former Democratic state Sen. Dave Roberti in 1994.

About the writer:

• Call Judy Lin, Bee Capitol Bureau, (916) 321-1115.