Neil Derry Responds to Felony Charges Filed by State Attorney General Office

San Bernardino County Supervisor Neil Derry is calling charges that he laundered between $5,000 and $10,000 in campaign contributions through a political action committee premature.

On Tuesday, the California Attorney General’s office filed a complaint against Derry accusing him of felony perjury and filing campaign documents that failed to report a $5,000 contribution from Arnold Stubblefield-Highland Town Shops. Attorney general officials said Derry then “knowingly” submitted a campaign report with the omission. Officials said he also failed to report Stubblefield as a contributor, which is a misdemeanor.

“I have always tried to comply with the reporting requirements for my campaigns,” Derry said in a written statement released late Wednesday. “If I made a mistake I will correct it. I was not informed of this supposed error before I received the complaint, however, and have not been given the opportunity to voluntarily correct any mistake.”

The alleged impropriety was found during an investigation into political corruption in San Bernardino County, said Jim Finefrock, spokesman with the State Attorney General’s office. Some of that corruption involved former San Bernardino County Assessor and Supervisor Bill Postmus.

Postmus has been working with authorities to expose corruption in the county after he was charged with several felony counts of accepting bribes, misuse of public funds and possession of methamphetamine. He pleaded guilty after prosecutors offered to cut the number of charges in exchange for his cooperation, according to several reports.

Stubblefield is also cooperating with investigators. He told investigators that on May 31, 2007, he wrote a check on a business account of Highland Town Shops for $5,000 payable to the Inland Empire Political Action Committee, at the time controlled by Postmus. Stubblefield intended the contribution to go Derry’s campaign fund, according to court documents. Stubblefield told authorities he did not remember “who told him to make the check payable to the Inland Empire PAC and he had no knowledge of the Inland Empire PAC or who controlled it.”

Stubblefield said he either mailed or handed the check to Derry.

Derry told investigators he asked Stubblefield for a contribution, but that the developer told him he did not want to show up on campaign records for “political reasons.” Stubblefield asked if there was a political action committee that supported Derry he could donate to, according to documents. Derry then mentioned that the Inland Empire PAC was “probably” going to support his campaign.

Derry also did not remember how he received the Stubblefield check, but he did admit giving the check to Postmus.

“Derry admitted his campaign later received contributions from the Inland Empire PAC,” according to court documents. “Derry admitted that it was 'understood' that the Stubblefield funds were to support his campaign.”

Postmus told investigators that at a lunch meeting at a San Bernardino Coco’s in June 2007, Derry handed over more checks that brought the total to $10,000.

“We’re referring the matter for possible administrative action to the Fair Political Practices Commission,” Finefrock said.

Derry could face a possible four years imprisonment. The perjury charge is the most serious, Finefrock said.

It was not clear how the charges would affect Derry’s position on the San Bernardino Board of Supervisors. The Board will discuss the matter with County Counsel in closed session, board chairwoman Josie Gonzales said.

“Today’s news concerning Neil Derry is disturbing,” she said through a written statement. “However, as always, my focus will be upon faithfully executing the duties of my office without distraction.”

“I will not allow the actions of any one individual to define this County. I won’t allow them to reflect upon or discourage the decent people who work here. I won’t allow them to disrupt or create doubts about the vital, first-rate services that we provide for the public,” she wrote.