A scandal is brewing in Riverside County that is beginning to break into a big story.
What if I told you that supporters of a candidate for Congress dropped tens of thousands of dollars into a new charity group, which then hired this candidate to be the charity’s Executive Director, paying the candidate the vast majority of the funds apparently raised by the group?
This is no hypothetical situation, based on a legal complaint filed with the office of Attorney General Kamela Harris, which was shared with the FlashReport, it would appear that former Congressional candidate and Palm Springs Mayor Steve Pougnet (pictured, right), who ran unsuccessfully in California’s 45 District and lost to popular incumbent Mary Bono Mack, was the beneficiary of tens of thousands of dollars in salary from Pride Parents Palm Springs.
It is unclear what, if anything, Pride Parents Palm Springs has done (besides launch a website, complete with a blog that hasn’t been updated since back in 2008) in terms of providing services.
While the individual filing the complaint has opted to retain his confidentiality (which often occurs in such complaints — they do reveal their identity to the Attorney General’s office), it accuses both former Congressional candidate and Palm Springs Mayor Pougnet — and Rancho Mirage City Councilman Scott Hines, among others — with forming a charity but diverting the donations to pay Pougnet — presumably so that he could afford to be a full time candidate. The complaint includes the most recent federal tax filing of the group (attached below) that shows for the period covered that Pougnet was well compensated. The next federal return for the group is not due until June.
According to the paperwork, Pougnet took the lion’s share of donated funds in the form of personal compensation ($32,000) for supposedly doing 25 hours of work each week — this strains credulity given that Pougnet was busy being a high profile Mayor and campaigning for Congress. Oh yes, in addition to all of this, Pougnet is also a real estate agent (but that probably doesn’t pay the bills these days).
It is well known that Hines (pictured, left) is a close friend and political advisor to Pougnet. Pougnet, Hines and Pride Parents shared office space during Pougnet’s failed campaign for Congress, which raises even more questions about the real purpose of this organization.
It doesn’t take a whole lot of Google searching to figure out that Scott Hines is the "Conflict King" of the Coachella Valley
Example One: Hines conflict of interest over Homeless Shelter Position. From the Desert Sun…
Hines withdrew his name from consideration after other valley leaders’ expressed concern that such a role appeared to create a conflict of interest with his elected seat. He was poised to get a $95,000, one-year contract.
Example Two: Hines conflict of interest over voting on marijuana dispensaries… From an editorial in the Desert Sun…
Example Three: Hines has conflict in issue of location of new county jail… From the Desert Sun…
Criticizing Hines for statements made to The Desert Sun and a local radio show, a Friday letter from the Palm Springs Desert Resort Communities Convention and Visitors Authority concludes Hines “has lost credibility with respect to acting in good faith. We believe the county should work with the CVA to mutually retain a neutral facilitator.”Leaders of the Coachella Valley’s top tourism industry group asked Riverside County to drop Rancho Mirage City Councilman Scott Hines as a facilitator in the Whitewater jail siting controversy.
Given the high political profiles of Pougnet and Hines, look for Attorney General Harris’ office to take this complaint very seriously. Cracking down on charities that cheat is a big deal these days (unfortunately).
I expect more scrutiny to be applied to this situation, and that for this to develop further. Perhaps there is a valid explanation for the seemingly inexplicable — but that will be for law enforcement authorities to determine.
As Matt Drudge would say… DEVELOPING…