California Secretary of State Kevin Shelley
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A San Francisco real estate company is embroiled in a
campaign contributions controversy that has ignited federal and state
investigations and raised questions about the possible misuse of money from
real estate transactions.
Earlier this month, the FBI raided the office of First
Financial Realty in San Francisco, which is owned by broker Shing-Kit Lee and
his wife, Julie Yang Lee, a Realtor, according to reports in the San
Francisco Chronicle. The state attorney general and the Fair Political
Practices Commission—a state agency that enforces political campaign, lobbying
and conflict of interest laws—are investigating the campaign contributions.
Sigrid Bathen, a spokeswoman for the commission, said this
week that the commission does have an open case on the "Julie Lee
matter." Bathen said the commission typically does not publicize its
investigations, though in this case "the complaint has been publicized by
the complainant."
On Aug. 13, in response to news reports, California Secretary of State Kevin Shelley issued a statement
that he would return $125,000 in campaign contributions as a result of reports
that the contributions may have been inappropriately funneled to his 2002
campaign, and he directed the campaign to place $80,000 in additional
contributions into an escrow account "pending investigations into the
possible impropriety of two more contributions."
Shelley said in the announcement that "revelations
emerged this week" that the $125,000 in contributions to his 2002 campaign
for secretary of state may have been channeled from a state grant for the San
Francisco Neighbors Resource Center, a nonprofit that was founded by Julie Lee.
Lee has been a high-profile activist in San Francisco and an outspoken voice
for the Chinese-American community.
Shelley cited specific donations in the name of Patrick Hsu
and Eliana Maldonado, who filed a complaint in October that was referred to the
Fair Political Practices Commission. Referring to a newspaper account that
stated that Hsu and Maldonado's contribution appear to have been improperly
diverted from payments for home-sale transactions, Shelley said in his Aug. 13
announcement, "The idea that someone would utilize a down payment on a
home to hide the true source of a campaign contribution is truly bizarre – and
totally unacceptable."
He also stated, "I've never even heard of someone
attempting this sort of subterfuge. Again, I call on the attorney general and
FPPC to investigate."
There are reports that other real estate agents may have
been involved in the operation of the center and in the contributions to
Shelley.
According to state campaign
contribution records, there were two donations to Shelley's campaign in the
name of Maldonado on Sept. 27, 2002. One of those contributions was for $10,000
and the other was for $20,000. And there was one contribution in Hsu's name for
$50,000, on Sept. 30, 2001. Shing-Kit and Julie Lee personally donated $17,500
on Sept. 30, 2002, and Julie Lee donated $2,500 to Shelley's campaign.
Tom Pool, a spokesman for the California Department of Real
Estate, said Julie and Shing-Kit Lee have active real estate licenses
and "are in good standing," with no complaints on record. The Lees'
First National Realty also does business as First Real Estate Financial
Services, First Financial Services, First National Realty of San Francisco, and
First National Realty of California. The Lees could not be reached for comment
this week.
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