State Auditing D.A.’s Fund for Misuse

The state attorney general’s office said Monday it is auditing a special fund in the Orange County district attorney’s office to determine whether money earmarked for law enforcement was misused.

The probe comes two weeks after Orange County Auditor-Controller David Sundstrom said he was unable either to verify or refute allegations by the Orange County Grand Jury that money from the fund was improperly spent on alcohol.

Sundstrom said his audit stalled because Dist. Atty. Tony Rackauckas would not provide him with certain documents about the expenses. Rackauckas argued that making the documents public would compromise undisclosed criminal probes.

A spokesman for Atty. Gen. Bill Lockyer said his office’s audit of the Special Appropriations Fund began several weeks ago. Officials are trying to determine whether a Rackauckas aide used money to buy drinks for politicians, lobbyists, journalists and others.

The spokesman, Nathan Barankin, said the attorney general is within his rights to conduct the audit because his office allocated the money in the special fund and oversees its use. The attorney general routinely audits the funds, but is paying special attention to Orange County, Barankin said.

“We decided to expedite this particular audit because of the questions raised,” Barankin said. “The purpose of the program is to help local law enforcement prosecute and convict dangerous criminals. Our objective is to make sure the money is being used for that purpose.”

Susan Schroeder, a spokeswoman for Rackauckas, declined to discuss the audit.

The attorney general disburses about $3 million annually to local district attorneys for use in sensitive areas such as witness protection and relocation.

In June, the grand jury reported that Rackauckas’ top investigator billed the fund for alcohol-only expenses at a Santa Ana social club. It’s unclear exactly how much was spent.

Noting that the county does not reimburse employees for alcohol expenses, Sundstrom opened an investigation of the fund in October.

But Sundstrom has said he was unable to determine whether Rackauckas aide Don Blankenship billed the fund for alcohol. Sundstrom last week asked the attorney general to help him complete the audit. He said he hasn’t gotten a response.

“Am I going to take the D.A.’s word or the grand jury’s word?” Sundstrom said Monday. “I need to come to my own assessment independently. In order to do so, I need to see those documents.”

If Sundstrom determines money was misspent, he said he will ask the district attorney’s office to reimburse the county.

Lockyer has criticized Rackauckas for his handling of the special fund as well as other allegations contained in the grand jury report. Rackauckas has denied any wrongdoing, saying the grand jury was unduly influenced by his political enemies.