Fabian Nunez Accused of Funneling Charity Donations

WESTLAKE DISTRICT, Nov. 2, 2007 (KABC-TV) (KABC) -- Assembly Speaker Fabian Nunez is under scrutiny again tonight. The Los Angeles Democrat may have used a charity to funnel funds from donors to events that boosted his political career.

Corporate friends of the Assembly Speaker giving hundreds of thousands of dollars to a favored charity in his district.

There are questions about that charity which calls itself a small non-profit.

Under scrutiny: Speaker of the Assembly Fabian Nunez and corporate donations he directed to Collective Space Inc., what appears to be a sparse storefront charity in L.A.'s Westlake area.

Nunez discloses to the Fair Political Practices Commission that companies donated $300,000 to Collective Space for events Nunez sponsored.

In Sacramento there's an outcry from critics.

"Nunez is soliciting from major special interests that have business before the legislature and he has power over, soliciting major contributions from them," Kevin Spillane of No On Prop 93 said.

"They go to this foundation, the interest groups get a tax write-off, the contribution exceeds campaign reporting limits, and, frankly, then it supports Fabian Nunez."

"I ask corporations to be good corporate citizens, to contribute to good causes, so that young people can have what they need," Nunez said.

Collective Space has failed to file annual tax returns and paperwork that would provide detailed information on how the money was spent.

Doug Mancino literally wrote the book on taxation of exempt organizations and says documentation is key to insure that the non-profit did not operate as a shell operation for Nunez.

"You would also see in the salary line what people are getting paid for," said Mancino. "You can test whether this is just another way of having a charitable slush fund."

Nunez directed companies such as AT&T, Verizon and the California Hospital Association to donate to Collective Space. The charity's executive director tells Eyewitness News that the group only did administrative work for the Nunez events, cutting checks for Nunez's Toy Drive, Soccer Fest and Youth Conference.

"I represent the poorest district in the state of California. I can't turn my back on these people, I have to help them.

Nunez's office no longer uses the charity. According to the state tax board, Collective Space is not supposed to be operating.

The executive director tells me that they are in the process of assembling all the necessary paperwork for the IRS and hope to have everything properly filed in the next two weeks.

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