Jeff Stone’s Race for Humanity – Part Two

Steve Gramm Steve Gramm 18 Comments

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Following up on my last post, it looks like there may be much more to the whole “Third District Supervisor Jeff Stone’s Race for Humanity” story than meets the eye.

The organization was launched in 2006 as a non-profit corporation according to their filings with the Secretary of State.  It appears that the organization received over $100,000 in taxpayer funds from Supervisor Jeff Stone’s slush fund in 2006 that may not have been reported to the IRS.  A review of the Race for Humanity 990s reveals that the apparent first tax return was filed for FY 2007 which covered the time period of 07/01/07 thru 06/30/08.  This would mean that over $100,000 of taxpayer funds and whatever private donations were received prior to July 1, 2007 may be unaccounted for and not properly reported to the IRS.

According to the website GuideStar (http://www.guidestar.org) it appears there was not a filing for FY 2006 (07/01/06 thru 06/30/07) for the Race for Humanity which would have covered the period of the first race held in April of 2007.  The 2007 Form 990 on GuideStar indicates on the first page that it is the “initial return.”

It is possible that the prior year 2006 return was submitted and that GuideStar doesn’t reflect it.  If so, Race for Humanity is free to provide it so that the public may view the details.

In addition, the California Attorney General’s website lists the organization as delinquent in the filing of their Registration Renewal Fee Report (http://rct.doj.ca.gov/MyLicenseVerification/Search.aspx?facility=Y).

Although the document was filed, the AG’s office requested more information over two months ago concerning a potential conflict of interest.  One of the board member’s business was paid $5,700 and the AG’s office wants more information.

Most non-profits are required to file Form 990s with the IRS, which are considered public documents.   The Race for Humanity is not “most non-profits.”  This organization has the name of an elected official as part of its official name, his sister is the CEO, she works out of his taxpayer funded Supervisor’s office using county resources and Supervisor Stone has “given” over $300,000 of taxpayer funds to the organization.

Because of his unusually close relationship to the organization, it is time for Supervisor Jeff Stone and Third District Supervisor Jeff Stone’s Race for Humanity to open its books to the public and lead by example.

Taxpayers should demand nothing less than complete transparency.

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Comments 18

  1. Well I will admit this does not look good but I will wait to hear an explanation from Supervisor Stone before I pass judgment.

  2. I think Jeff Stone said it best in his March 12, 2010 opinion piece in the Press-Enterprise:

    “Elected officials must always assume accountability when administering public funds. Equally, elected officials must assure the public that, even with bid processes, public dollars are guarded and protected with policies of complete transparency (“Public bid process sought,” March 2).”

    http://www.pe.com/localnews/opinion/localviews/stories/PE_OpEd_Opinion_W_op_13_stone_loc.3daefd5.html

    I hope that sort of transparency equally applies to his taxpayer funded, self promoting non-profit run by his sister out of his taxpayer funded county office.

  3. I guess Stone likes to take credit for everything he does with taxpayer money. He had a highway sign made up that said “Traffic Directors funded by County of Riverside Supr. Jeff Stone.”

    http://stonewatchdog.blogspot.com/

    If this guy was president there is no doubt each space shuttle launch would have “shuttle launch funded by Jeff Stone” on the shuttle and probably his portrait.

    Saying he has an over-inflated ego is an understatement.

  4. Isn’t Stone’s campaign slogan “Reclaim California?” Let’s start by Reclaiming Riverside and all the tax dollars that Stone’s pillaged taxpayers.”

  5. What is interesting about this issue is that Jeff Stone should be held to a higher standard than the average Joe since he is an elected official. I am sure he will have some excuse as to why these items have not been properly addressed but the bigger question people should be asking is…what else is there that we have not found yet? I would like for Jeff and his sister to open the books to the public and let us see ALL the expenditures and contributions. I am all for transparency and as the old adage goes…the truth will set you free.

  6. So the organization has taken taxpayer funds and then failed to comply with the law by reporting those donations to the IRS and the state. They also seem to think it is not a big deal to respond to the Attorney General in a timely manner regarding someone on their board deriving income from the organization. These are the high ethical standards that Stone supporters so blatantly speak of in their posts? I mean,it is one thing to not like a particular candidate,but it is pure ignorance to blindly support someone because of animosity.Support who you want but do so with open eyes.

  7. Julia Glick’s article is rife with inaccuracies which is why (in the end) she lost her job with the Press Enterprise. First, about the slush fund:

    1. Each of the Riverside County Supervisors is allocated $500,000 for discretionary community improvements, the “slush fund” as you call it. The use of all of those tax dollars must be approved by 4 of 5 members of the Riverside County Board of Supervisors in order to be funded. Jeff Stone’s discretionary funds have supported the building of Libraries, Battered Women’s Shelters, Pregnancy Care Clinics, Cancer Detection-Treatment Clinics, and High School Band Programs; The San Diego County Supervisors are by contrast allocated $1,000,000 each for these kinds of things.
    2. Lori Stone volunteers for Riverside County on Women’s Issues and not just in Jeff Stone’s office. She volunteers for the Sheriff’s Department and also the District Attorney’s office. From issues surrounding battered women awareness to the Sheriff’s S.A.F.E (Sexual Assault Felony Enforcement) Team as their spokesman, except for her travel expenses Lori volunteers without any compensation from the government of Riverside County.
    3. Riverside County, not Jeff Stone analyzed Lori Stone’s mileage expenses and encouraged Lori to use a county vehicle when she travelled on County business because it would cost the taxpayers of Riverside County less than reimbursing Lori for her mileage when driving her own car. No laws have been broken and no FPPC rules have been broken as the Press Enterprise article itself points out!
    4. Lori Stone volunteers full-time for Riverside County; she has no other income. So Jeff Stone has compensated her from campaign funds that he raises for his own election from local supporters. If anybody should be critical of what Jeff Stone chooses to use his campaign money for, it should be his donors.
    5. Lori Stone has also worked on Jeff’s past campaigns and a portion of these funds have also compensated her for her campaign work. If you are running for public office, who do you turn to and trust most, your paid consultants or your family?
    6. Joel Anderson has paid his brother to run his campaign mail through their mutually owned business for his campaigns; Joel has also paid himself out of his own same campaign funds to print his campaign mail. Is that unethical? Is that illegal? Is it profiteering off your own donors? I think you’d be hard pressed to say no. Did Jeff Stone personally monetarily profit from his donors? Certainly not.

    I support Jeff Stone because he has experience in local government; he has been able to figure out how to use a system that was not designed by conservative Republicans and make it work to benefit taxpayers. Unlike Joel Anderson, Jeff Stone is not going to Sacramento to just vote “no” and then whore himself to the special interests for campaign money. He’s going to Sacramento to try and fix problems and challenge the status quo to make California a better place for all of us. He supports a part-time legislature and he’s willing to do this for nothing.

    For Joel Anderson, this is a career, a way to make money not just for the next 8 years but in the end as another political hack living off the political-professional machine that refuses to fix what’s wrong with our State because it will put them out of a job; it’ll stop them from profiting off of the taxpayers.

  8. Thanks to Mr. Porrello for posting exactly what the Stone campaign sent him. LOL!!!

  9. Don’t believe everything that the Stone campaign feeds you. Maybe the problem that Stone had with Ms. Glick is that she actually questioned his ethics and both Stone and his sister refused to talk to reporters when it involved their ethics.

    Since Jeff Stone became Supervisor the slush funds have been $1 million per supervisor – $1 x 5 = $5 million. Simple math.

    Now because the county has a budget problem (sounds like poor fiscal planning to me) the supervisors are cutting the slush funds but only temporarily. Check out this PE editorial:

    http://district1.co.riverside.ca.us/pdf/PEBudgetOpin.pdf

    I believe they actually agreed to cut them to $500,000 each this year which is still $2.5 million.

    The only reason Stone pays his sister out of his campaign funds is because there is actually a county policy that forbids him from hiring his sister directly. There is a reason for this and instead of respecting it, Stone figures out a way to get around the issue.

    If there is no problem with Stone’s sister using the county vehicle, then why did she stop doing it after it was exposed?

    Who do you trust most? Well I trust my mother but I would not hire her to run my campaign. She has no experience, so I would hire a professional. I fail to see how Lori Stone’s experience as a cosmetologist qualifies her as a seasoned political consultant because based on what he paid her she must have some serious campaign experience and political knowledge.

    But more importantly regardless of who you support why not ask the Stone campaign to answer the questions about Race for Humanity? Why did the Stone’s refuse to talk to reporters about the Race for Humanity when questioned? What are they hiding? It is taxpayers’ money and you have a right to know.

  10. Whatever Mr. Stone did, at least it wasn’t illegal?

    http://insideriverside.typepad.com/my_weblog/2009/12/dennis-hollingsworth-fundraiser-guilty-of-money-laundering.html

    His opponent, Joel Anderson, was found guilty of a money laundering scheme and fined by the FPPC.

    If you’re mad because Mr. Stone has his sister on his campaign staff and working for his non-profit, then shouldn’t you be even angrier at Mr. Anderson for breaking the law and trying to cheat the system?

    If I had to choose between the two, I’d go with Jeff Stone as the better person.

  11. Hey Anthony,

    Just curious, where did you get the information that the County of Riverside suggested that Lori Stone use a county car instead of her own and that it was not Supervisor Stone that made the request for her to have a county car?

  12. Why, the answer is the same place that Stone’s supporters get all of their accurate and unbiased information — from Stone or from other Stone supporters. Mr. Porrello has the guts to post what the campaign gave him, but he doesn’t have the wherewithal to defend it under questioning.

  13. Answer if you would lke Anthony, but I already know the answer. Isn’t this you in the passenger’s seat with Jeff Stone’s campaign manager Jonathan Buettner?

    http://www.youtube.com/watch?v=ihZcQkU0FQg

    P.S. Don’t believe everything the Stone campaign tells you. As the saying goes – “leave no stone unturned” – you never know what you might find!

  14. So much for accusing Assemblyman Anderson of earning a living in politics. It is clear to me that Porrello is nothing more than a paid “political hack” living off the Stone campaign.

  15. I don’t spend all my time reading propaganda articles for Joel Anderson. Thanks to the person who informed me of the recent comments. Just to set the record straight, I do not work for Jeff Stone, but I support him and have discussed many issues with his team. I stand behind what I wrote.

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