Don’t expect anything to come of campaign gaffe

In last week’s column, I suggested that voters need to be their own investigative reporters, examine campaign disclosure forms for candidates, independent expenditure (IEs) and political action committees (PACs) in order to uncover the sources of mystery money that fund these entities.

But Newport resident Dick Weaver, treasurer for council candidate Jeff Herdman, apparently was already doing this.

Alleging inconsistencies in campaign disclosure forms of Herdman’s opponent, District 5 Newport council candidate Lee Lowrey, Weaver’s attorney, Mark S. Rosen, sent a letter Oct. 20 to Newport’s city attorney, Aaron Harp, and Orange County District Attorney Tony Rackauckas.

Weaver requested of the attorneys that “action be taken or a special prosecutor be appointed because of Mr. Lowrey’s violation of the Newport Beach campaign contribution law.”

In a nutshell, Lowrey’s June 30 campaign report shows he received a contribution from an entity listed as SCCBT, the Southern California Coalition of Business and Taxpayers, in the amount of $250.

On Sept. 13, Lowrey received another contribution from SCCBT for $1,000, which totals $1,250, an amount over the $1,100 legal contribution limit.

Rosen alleges that “Lowrey tried to cover up this amount on the Sept. 13 contribution by listing a cumulative total of $1,000, ignoring the first contribution of $250. He also spelled out SCCBT’s full name in the Sept. 13 contribution but only identified it by its initials in the June 30 contribution.”

The candidate, however, called the episode an attempt by his opponents to do political harm to him right before the election.

“I’m not worried about it at all,” Lowrey told the Daily Pilot. “They wanted to make a big deal out of this, but it’s not. I understand people are grasping at straws toward the end of the campaign season.”

I reached out to Lowrey for additional comment but didn’t hear back.

Lowrey, however, in his interview with the Daily Pilot, said this contribution was an error by his treasurer, Lysa Ray, and once discovered she refunded the excess amount about two weeks ago. That would have been the beginning of October, but Lowrey’s report campaign finance report filed this week shows the refund check was written Oct. 20 — the same day Weaver filed his complaint.

Now, throwing Ray under the bus was probably Lowrey’s only political move here, but Ray’s a seasoned campaign treasurer. This isn’t her first rodeo working for veteran political consultant Dave Ellis’ clients this campaign season, or last, so I’m not buying that she’s sloppy one here. (Ray did not return a request for comment from a Daily Pilot reporter earlier in the week.)

Lowrey’s also the founder and chairman of the powerful Atlas PAC, so he’s certainly hip to campaign contribution laws.

That being said, in 2012, two former mayors from Huntington Beach and Fountain Valley filed complaints with the Fair Political Practices Commission (FPPC) alleging that Atlas PAC failed to disclose funding sources when sending out an attack ad against council candidate Jill Hardy, according to the Hungtington Beach Independent.

In that case, Atlas treasurer David Bauer chalked it up to human error, saying he would correct it.

Sound familiar?

Lowrey’s background is in real estate finance. A business partner of Costa Mesa Mayor Pro Tem Jim Righeimer, he co-founded Newport’s Arbor Capital Partners, which focuses on real estate investment and development in Southern California, according to his campaign website.

In a city like Newport, which is grappling with the issue of high-density development, Lowrey may not be a popular choice with some voters, noting his background.

News spread quickly this week about the complaint against Lowrey. Emails I received raised interesting concerns, like one from resident Dr. Donald W. Wise.

Wise emailed friends questioning Harp’s role in the Lowrey campaign finance issue.

“City Attorney Aaron Harp’s hands might be tied from taking any action,” Wise wrote. “Harp reports directly to a City Council that is controlled by Team Newport constituents, some of whom have donated money to ... Lowrey’s campaign.”

Ellis saw the email and wrote back just three words to Wise: “Be VERY careful.”

I and several other people were copied on this exchange, so I called Ellis and he said he wasn’t able to talk at the moment.

Nevertheless, Wise is a former Marine and not easily rattled. And I do believe Harp’s hands are tied because Lowrey is not a sitting councilman, at least not yet.

I thought this would all be discussed at Tuesday’s City Council meeting but nothing came up, at least in open session, so I assume the council will just let this issue die of inattention.

But voters may not.

BARBARA VENEZIA lives in Newport Beach. She can be reached at [email protected].