Campaign funds conjure suspicion

A cash donation given to City Council candidate Gary Monahan has ignited a dispute over whether it was a contribution or earnings from a business deal he conducted outside of the election.

The $7,000 he received was twice the amount given to any Costa Mesa candidate — and the biggest — through the end of September.

On his first campaign finance disclosure statements, Monahan lists the money as a donation from Chino Hills Country Club, 2285 Newport Blvd., Costa Mesa. But no country club exists at that address.

A carwash called Angel’s Auto Spa operates there, and the cash came from the spa’s owner, Surat Singh.

But Singh denies that the money was given as a campaign contribution. He says it was payment for lobbying services that Monahan provided. Singh said he intends to claim the money as a business expense for tax purposes.

“It’s not a donation,” Singh said. “I’m not so rich I can give donations this big.”

Singh said he’s trying to establish a country club on a piece of property in Chino Hills and that Monahan is helping him push the development through that Inland Empire city’s government.

Monahan sees things differently.

He said Singh — a longtime friend of his by both men’s accounts — gave his campaign the money because he could afford to give donations that big and wanted to see Monahan back on the council.

Any earned income cannot be included on a Form 460 (the form for campaign donations) and must instead be reported on a Statement of Economic Interest, according to the California Fair Political Practices Commission, a state agency that monitors elections.

“If a candidate provides their own money they would have to report that as a loan or a contribution from themselves,” said Roman Porter, a spokesman for the commission, who did not comment specifically on Monahan’s filing.

Candidates who violate the rule could be subject to fines up to $5,000 depending on the gravity of the circumstances, Porter said.

Campaign contributions are not considered taxable income, according to the IRS, but consulting fees are.

Competing candidate Bill Sneen noticed the contribution on Monahan’s forms and confronted Monahan and Singh.

After getting what he considered to be conflicting explanations from them, he said, he will most likely file a complaint with the state agency within the next few days.

The commission had not received any complaints about Monahan’s filing, Porter said.

“Gary Monahan has run for many public offices and has been on many city councils,” Sneen said. “He knows better than this.”

Singh said he employs Peter Buffa and Gary Monahan, both former Costa Mesa mayors, to help him push through his development plans in Chino Hills.

“When I went to Chino Hills about a year ago they treated me like I was homeless,” Singh said. “But when Peter and Gary came with me, then they started to treat me like someone.”

Through Oct. 18, Monahan continues to be the second biggest fundraiser, amassing more than $43,000 so far this year.

ALAN BLANK may be reached at (714) 966-4623 or at [email protected].