The California Democratic Party has donated $250,000 to help Don Perata pay off his legal bills, as the Senate Democratic leader continues to rack up expenses fending off an ongoing FBI corruption investigation.
The party made the quarter-million dollar donation on July 1, according to campaign filings.
The money comes just in time for Perata, who, according to a May disclosure, had only $273 cash on hand in his legal defense fund and $250,000 in unpaid bills.
Jason Kinney, a spokesman for Perata on legal issues, said the donation -- and the continuing expenses -- are "no indication of anything."
"As long as this scurrilous and seemingly endless investigation continues to meander, Senator Perata will unfortunately continue to accrue significant legal expenses," Kinney said.
An Oakland-based federal grand jury launched the Perata investigation in 2004, probing the business dealings of Perata, his family and close friends. That year, FBI agents raided the homes of both Perata and his son, Nick. A year later, investigators subpoenaed Perata's Senate e-mails over a six-year period.
The FBI probe has been publicly quiet of late, last bubbling to the surface in November, when the Los Angeles Times reported on recent activity by investigators. There has been no indication the probe is close to ending, either with an indictment or nothing at all.
Through it all the Oakland Democrat's legal bills have mounted, with total spending to fight the probe topping $1.9 million, as of the latest campaign filings.
The Senate leader spent $742,000 in 2005, $338,000 in 2006, $531,000 in 2007 and $289,000 so far in 2008.
The lion's share of spending has gone to the law firm Stevens & O'Connell. Perata's lawyer, George O'Connell, is a former U.S. attorney in Sacramento. A smaller share has gone to the Olson, Hagel & Fishburn law firm. Some money has gone to the Mason Investigative Group, a private investigating firm, and Kinney, Perata's spokesman.
Kinney said the spending is for "extensive legal research and analysis."
The breadth of the federal investigation "requires our legal team to look at what they're looking at -- which is everything," Kinney said.
The investigation has taken a political toll, as well. Opponents of the term limits extension measure, Proposition 93, on the Feb. 5 ballot, used the investigation to bludgeon the initiative as a tool of corrupt politicians.
"Proposition 93 is a fraud created by two politicians, one under investigation for misusing campaign funds for lavish shopping sprees, and the other whose house was raided by the FBI in an ongoing corruption scandal," said one TV ad.
The Democratic Party is the single largest donor to Perata's legal war chest, with a total of $450,000 in contributions (another $200,000 was given last December).The next largest donor is Sacramento developer Angelo Tsakopoulos, who has given $100,000.
Unlike regular campaign contributions, which are limited to $3,600 per election, donations to the legal fund can be made in any size.
Roger Salazar, communications director for the Democratic Party, defended the six-figure donation.
"The California Democratic Party contributes to Democrats, including our leaders," Salazar said. "That's what we do."
It is important, he said, that "when the leaders of our party get attacked ... the party is there to assist them as well."
He insisted the nearly half-million in contributions in the past eight months will not hinder Democratic election efforts come November. He pointed out two counties -- Ventura and Stanislaus -- recently "turned blue," meaning Democrats now outnumber Republicans there.
"There is not anything that we are going to be neglecting to have a successful November for all of our Democrats," Salazar said.
Perata, he noted, like the rest of the legislative leadership, is "very instrumental in helping raise money for the party."
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