Donations to Picus, Woo Probed : Developers May Have Violated $500-Per-Person Limit

Investigators are looking into multiple developer contributions accepted by recently reelected City Council members Joy Picus and Mike Woo as possible violations of Los Angeles’ strict $500-per-person limit on campaign contributions, city officials said Tuesday.

Since voters passed the campaign limit in 1985, there have been repeated accusations that candidates and contributors seek to circumvent the law through various strategies.

City Clerk Elias Martinez confirmed Tuesday that his office is probing both Picus’ and Woo’s campaign statements at the request of the city attorney’s office.

Although Martinez would give no details, Woo campaign manager Steve Afriat said the investigation centers on fourteen $500 contributions accepted by the councilman from seven executives of the Lycon Group, a development firm, and their children.

Contributions Returned

“We returned half of the contributions, those from the children, because they seemed to go against the law, because the money actually appeared to come from the parents,� Afriat said.

“But Mike didn’t catch it right away, so the returns didn’t show up on our last campaign statement in late March. So I guess someone complained.�

He expressed confidence that investigators would drop the case once they examine the canceled checks by which the seven contributions from children of executives were returned.

The Picus probe stems from a letter sent to City Atty. James Hahn by Paul McKellips, one of five candidates Picus edged out in the April 11 primary.

McKellips said Tuesday that he urged investigators to look into $500 contributions to Picus from Sherman Oaks developer Edward L. Saunders, his wife, and son Brad, who lives at the family home in Woodland Hills.

“When a child lives at home, it raises the question of whether he put up the money or whether his parents did it using him as a figurehead,� McKellips said.

“Brad is swimming in money,� Anita Harkavy, an executive assistant at Saunders Development Corp., said Tuesday. “He is very wealthy on his own without mom and dad.�

‘Enthusiastic Supporter’

She termed Brad Saunders, 22, an “enthusiastic supporter of Picus in his own right.�

Also questioned by McKellips were three $500 contributions from Selleck Properties Inc., a Woodland Hills development firm.

Two of the checks were sent in the name of other firms with the same address--Sherman Way-White Oak Associates and Tampa-Saticoy Associates.

Noting that the law also limits business entities to $500 each per candidate, McKellips asked, “Are these really separate businesses? I think that should be checked into.�

Bob Selleck, managing general partner and brother of actor Tom Selleck, said Tuesday he is convinced that the three firms, each of which is a different partnership, “are separate under the law’s definition. We thoroughly reviewed that before making the contributions.�

Sharon Schuster, Picus’ chief deputy, said she had “no doubt� that investigators would conclude that “we have followed the letter and spirit of the law.�

She said that in the recent campaign, Picus returned more than $30,000 in contributions that exceeded the $500 limit, out of a total of $280,000 in contributions.