Stephen Kaufman To "mkuest@fec.gov" <mkuest@fec.gov> 

^a^lin«m«llm,i ^ cc "Joseph A. Quardarama" 

<]guard@kaufmanlegalgroup.com> 

10/17/2012 03:47 PM bcc 

Subject RE: LA Denfis Proposed Final Audit Report 

Marty: 

Thank you for forwarding this revised version of the PFAR to me and Joe Guardarrama of my office. 

We appreciate that some ofthe changes requested in our letter were already Identified by your staff 

and incorporated into this latest version. Nonetheless, a number of our concerns have not been 

addressed, particularly as relates to the characterization of comments made by the Committee's former 

counsel. We would also ask that the Commission further refine the paragraph on page 2 at the end of 

the section detailing the unauthorized activity ofthe Committee's former treasurer. While the new 

language is an improvement, we believe that the language we suggested in our letter more accurately 

reflects the circumstances. 

Please make it clear when circulating our letter that we were responding to a prior draft, but that a 

number of our concerns remain. 

Thank you. 

Stephen 

Stephen J. Kaufman 

Kaufman Legal Group 

A Professional Corporation 

777 S. Figueroa Street, Suite 4050 

Los Angeles. CA 90017-5864 

Tel: 213.452.6665 

Dir: 213.452.6550 

Fax: 213.452.6575 

Email: skaufman(a).kaufmanleaalarouD.com 

The information contained in this email, including any attachments, is confidential and may be attorney-client privileged infbrmatlon 

and Intended only for the addressee. Do not read, copy, or disseminate this email communication unless you are the addressee. 

The Information contained in this message is the property of Kaufinan Legal Group and its unauthorized use, disclosure, 

reproduction, or dissemination, is strictly prohibited. If you have received this message in error, please immediately notify the 

sender and destroy all copies of this communication. Thank you. 

Circular 230 Notice: To comply vi/ith IRS requirements, please be advised that unless othenvise expressly stated by the sender, any 

tax advice contained In this e-mall message and its attachments is not Intended or written to be used and cannot be used by the 

recipient (1) to avoid any penalties under the Intemal Revenue Code, or 2) to support the promotion or mariteting or to recommend 

any federal tax transaction or matter. Taxpayers should seek advice based on the taxpayer's particular circumstances from an 

independent tax advisor with respect to eny federal tex transaction or matter. 
KAUFMAN LEGAL GROUP 

A PROFESSIONA L CORPORATIO N 

October 17,2012 

Direct (213) 452-6550 

VIA EMAIL & FEDERAL EXPRESS 

Caroline C. Hunter, Chair 

Ellen L. Weintraub, Vice Chair 

Cynthia L. Bauerly, Commissioner 

Donald F. McGahn II, Commissioner 

Matthew S. Petersen, Commissioner 

Steven T. Walther, Commissioner 

Federal Election Commission 

999 E Street, NW 

Washington D.C. 20463 

Re: Comments in Response to Proposed Final Audit Report on the Los Angeles Countv 

Democratic Central Committee (A09/07) 

Honorable Chair and Commissioners: 

On behalf ofthe Los Angeles County Democratic Central Committee ("Committee"), we would 

like to take this opportunity to comment on the Proposed Final Audit Report ("Report") with 

regard to the Committee's activities during the 2008 election cycle. 

We appreciate the inclusion of new language at the beginning of the Report as a result ofyour 

directions to staff at the June 7, 2012 Commission meeting. That language acknowledges the 

widespread embezzlement scheme and cover-up by the Committee's former Treasurer, Kinde 

Durkee. Nonetheless, we believe that the single mention at the beginning ofthe Report does not 

adequately characterize the transactions discussed in detail later in the Report. 

As we have made clear in the numerous letters and testimony provided to the Commission since 

Ms. Durkee's arrest, the Committee now believes that Ms. Durkee's criminal wrongdoing caused 

the reporting issues giving rise to the audit findings, and that her attempt to cover-up these 

misdeeds is reflected in the statements provided by her and the Committee's fonner counsel 

during the audit exit conference and in their written submissions. All of this was done without 

the knowledge of the Committee or its officers. 

Upon learning of Ms. Durkee's wrongdoing, the Committee immediately replaced her with a 

new Treasurer and hired new legal counsel to respond to the Commission. Since then, the 

Committee, through its new counsel, has provided the Commission with as much information as 

is available to properly characterize the transactions at issue. Unfortunately, we do not believe 

that the Report adequately addresses those issues in the context of the audit findings. 

777 S. Figueroa Street, Suite 4050 Los Angeles, GA 90017 main 213.452.6565 fax 213.452.6575 www.kau£manlegalgrx>up.com 

X:\WDocs\Clients\LAC3196\006\00091864.D0C 
Caroline C. Hunter, Chair et al. 

Federal Election Commission 

October 17,2012 

Page 2 of3 

To put the facts in context, the Committee requests that all statements made by its former 

counsel be attributed to the Committee's "former counsel" (as has already been done with 

references to the Committee's "former treasurer"), and that those statements be referred to in the 

past tense rather than in the present, as they are currently stated. This will help clarify that these 

statements are not reflective ofthe Committee's current position. 

In addition, the Committee has particular concem about the following statement: 

LACDCC never provided documentation to support its belief that all the 

transactions underlying the findings in this report resulted from Ms. Durkee's 

unauthorized activity. The kind of activities described in her plea agreement as 

outlined above, however, could accoiint for many of the problems identified 

during the audit and cited in this report. 

{See Report, Part I, p. 2.) 

This statement implies that the Committee has either withheld information from the Commission 

or failed to provide information regarding the transactions at issue. Nothing could be farther 

from the truth. As you know, since discovering these criminal activities, the Committee has 

provided the Commission with as much information as possible to establish the true 

circumstances behind the transactions in question — at great cost and expense to the Committee. 

The fact of the matter is that the Committee does not have access to records that will fully 

explain the transactions, nor do we expect that it ever will have access to that information. The 

Committee therefore requests that this statement be modified as follows: 

LACDCC provided what documents and information it could obtain to support its 

belief that all the transactions underlying the findings in the report resulted from 

Ms. Durkee's unauthorized activity. Moreover, the kind of activities described in 

her plea agreement as outlined above could account for many ofthe problems 

identified during the audit and cited in this report. 

Finally, we urge that the conclusion section of Finding 2 relating to the Committee's Levin 

Account contain a reference to Ms. Durkee's embezzlement activity as a possible basis for the 

misstated transactions. The cuirent version does not refer to the embezzlement. 

In closing, we reiterate that the Committee's officers and personnel had no prior knowledge of 

the transactions at issue and did not authorize those transactions. Thus, to hold the Committee 

accountable for the unconscionable acts of its former professional treasurer would victimize the 

Committee even further. 

x:\wdocs\clients\lac3196\006\00091864.doc 
Caroline C. Hunter, Chair et al. 

Federal Election Commission 

October 17,2012 

Page 3 of3 

We appreciate your continuing consideration and the opportunity to comment. Should you 

require any additional infonnation, please feel free to contact us. 

Very truly yours 

SJK:ssn 

cc: Tom Hintermister, Assistant StaffDirector, Audit Division 

Eric Bauman, Chair, LACDP (via email) 

Adam Seiden, Executive Director, LACDP (via email) 

x:\wdocs\cIientsMac3196\006\00091864.doc