Statement of California Democratic Party John Burton on FPPC Complaint Against Abel Maldonado for Failure to Report Campaign Contributions

As a result of an IRS investigation, it has come to light that Congressional candidate Abel Maldonado likely failed to report past campaign contributions which would be a violation of FPPC rules. According to a Sacramento Bee article on the IRS audit earlier this month, Maldonado raised $35,500 for his State Senate re-election campaign at a fundraiser and did not report expenses which he then tried to deduct from his company's taxes. Mr. Maldonado's failure to report these expenses as in-kind contributions, would be a violation California's campaign finance regulations.

This matter was just recently brought to our attention by the Sacramento Bee's reporting. The statute of limitations for the violations is 5 years for FPPC action and expires this year.

The Sacramento Bee reported that the IRS denied the deduction as part of an audit on Mr. Maldonado's family business. If the IRS is correct, those costs were an in-kind contribution from the company to Mr. Maldonado's campaign committee and failure to report that contribution is a violation of the Fair Political Practices Act.  The IRS found that the family business, Agro-Jal Farming Enterprises, Inc., has underpaid its taxes by $4.2 million and has made dubious deductions for personal expenses, including home remodeling, country club memberships and a private plane.

Because Mr. Maldonado refuses to release his tax returns as he promised and refuses to report his campaign contributions or expenses as required by law, we must refer him to the FPPC for a full investigation.  Central Coast voters must surely understand that if Mr. Maldonado were to go to Congress, he would be serving under a legal cloud.

To download a copy of the FPPC complaint click here




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