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2 Executives Indicted In Campaign Contribution Scheme

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(credit: CBS)

(credit: CBS)

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LOS ANGELES (AP) — The developer of a Los Angeles hotel and the owner of an escrow company are accused of a scheme to funnel $26,000 into the 2008 mayoral campaign of Antonio Villaraigosa and the city attorney campaign of Councilman Jack Weiss.

The grand jury indictment against 62-year-old Alexander Hugh and 44-year-old Annette Lee was unsealed Friday.

It says that in 2008 Hugh — an executive with CIC Group attempting to build a hotel in Koreatown — enlisted Lee and employees at her Tower Escrow company to donate to the two campaigns, then be reimbursed by Hugh.

Prosecutors say the donors provided phony documentation to the campaigns, and neither campaign was aware the funds were illegal.

Hugh and Lee have each pleaded not guilty to money laundering and other charges.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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