State political watchdog opens investigation into Councilman James Gardner's 2014 Lake Forest city council campaign

The state’s political ethics commission has initiated an investigation into Gardner's 2014 Lake Forest city council campaign after a complaint alleging multiple campaign violations related to underreporting of donations and expenditures was recently leveled.

The Fair Political Practices Commission (FPPC) recently initiated the investigation due to the FPPC's evaluation of a complaint having "merit" regarding about Gardner's 2014 city council campaign. The complaint is detailed as follows:

1. An analysis of the combined 2014 Lake Forest city council campaign reporting on all Form 460 reports (campaign reporting of donations and expenses) supporting Gardner, Tom Cagley and Liz Miller noted that they sent approximately 10 mass mailing fliers to residents in Lake Forest (in the second attachment).

2. As the complaint estimates typical mailers cost between $5,000 and $7,500 per mailing, this would cause total expenditures for mass mailing fliers to equal between $50,000 and $75,000.

3. However, only a combined $21,020 was reported as paid to Spectrum Marketing (assumed vendor used for mass mailing fliers) on the combined Form 460 filings from the campaigns of Gardner, Tom Cagley and Liz Miller.

4. This caused an estimated under-reporting of approximately $30,000 to $55,000 of expenses related to mass mailing fliers. As a percentage, this is an error rate between 50% and 175%.

5. This under-reporting of expenditures has a similar effect on contributions reporting. When Gardner does not properly report expenditures, it is a way for him to hide contributions (and related contributors).

Previous Campaign Spending

Gardner has bragged about being extremely frugal in the past. In the 2012 campaign, Gardner is quoted from his own post (http://patch.com/california/lakeforest-ca/bp--campaign-2012-part-1-campaign-spending):

"I spent less than anyone, yet people complain that I am everywhere." Gardner also said he "conduct[s] an effective campaign at a minimal cost. I hope we win and maybe this will show everyone that big spending doesn’t have to rule the day."

Gardner's 2014 Campaign

So why the change of heart? Gardner campaigned 3 times - in 2008, 2010 and 2012 - when he proudly spent the least. So what happened in 2014? Did a new face on the scene provide funding to him in 2014? Why wasn't the donations ever reported?

Here is my theory. I believe Adam Nick helped secretly fund Gardner's 2014 campaign.

As you may recall, Gardner and Adam Nick didn't get along at first:

However, as you can now see in Gardner's recent fawning endorsement of Adam Nick on the Patch: http://patch.com/california/lakeforest-ca/city-council-candidates-adam-nick, they get along quite well now.

Adam Nick was the highest spending councilman to ever get elected in 2012. Flush with Adam Nick's money, I believe Gardner and Nick formed an alliance to overtake the city council in 2014, except they didn't succeed as only Gardner won the election. Fellow 2014 candidates, Thomas Cagley and Liz Miller who didn't win in 2014, are also currently under FPPC investigation.

Nick's History of Secret Donations:

Adam has a history of trying to make multiple secret undisclosed donations in a Voice of OC article: https://voiceofoc.org/2015/08/lake-forest-councilman-wields-cash-bribes-and-rage/

Nick also recently admitted (in his own words) to bribing one of his colleagues: http://patch.com/california/lakeforest-ca/lake-forest-councilman-adam-nick-admits-trying-bribe-colleague

Nick also admitted (in his own words) to offering a secret cash donation:

Recall

Having failed to transform the council in 2014, I believe they grew impatient and couldn't wait until the next election in 2016, so they recruited Leah Basile in 2015 to start the failed recall based on unfounded allegations against 3 of their colleagues on city council which cost the city over $80,000. Don't forget, the Recall Committee reported Gardner donating $30,000 because he was accused of wearing his own dog suit (http://patch.com/california/lakeforest-ca/somethings-fishy-james-gardners-big-dog). This is another "out of character" donation from Gardner and I believe time will tell that this was truly Adam Nick making a donation in Gardner's name.

Could Gardner's endorsement of Adam Nick be payback for Adam Nick secretly funding Gardner's campaign? Is Adam Nick the person behind the extravagant campaign spending that has now become the norm in Lake Forest? Are Gardner and Nick trying to achieve dominance of the city council at any ethical and monetary cost? And for what reason?

About the FPPC

California voters approved the creation of the FPPC via Proposition 9, the Political Reform Act (PRA), which mandates the FPPC to administer, interpret and enforce political campaign finance laws.

According to the FPPC, complaints are evaluated whether the "complaint contains enough evidence of a potential violation and whether the allegation is related to the PRA . . . If a complaint has merit and allegations that fall under the PRA, the parties will be notified and an investigation will commence to determine if there is a violation of the Act."

This is important as the FPPC does not open an investigation on all complaints: "If a complaint is found to be without merit, it is dismissed."

Summary

1. This detailed complaint along with the decision by the FPPC to open an investigation due to the complaint's merits is very concerning to me. It sure brings into question the honesty and integrity of Councilman James Gardner.

2. Gardner is such a huge fan of transparency. However, he has now been exposed for hiding his expenditures and donations.

3. What is Gardner hiding?

4. It remains to be seen how Adam Nick's involvement and potential donations in the 2014 election, 2015 failed Recall and 2016 election is flushed out by this investigation.

Stay tuned.