Source: US FBI
LOS ANGELES – An insurance brokerage executive was charged today with breaking federal campaign laws by making so-called “conduit” campaign contributions –contributions illegally made in the name of another person – to a joint fundraising committee that included a U.S. Senator’s principal campaign committee.
Teena Maria Hostovich, 66, of La Cañada Flintridge, is charged in a single-count information with making contributions in the name of another aggregating to more than $10,000 in a year, a felony that carries a statutory maximum sentence of two years in federal prison.
In a related filing today, Hostovich has agreed to plead guilty to the federal criminal charge and agreed to pay a fine of $43,500.
Hostovich is expected to make her initial appearance in United States District Court in downtown Los Angeles in the coming weeks.
According to her plea agreement, from May 2020 through 2023, Hostovich knowingly and willfully made a total of $75,700 in contributions to federal candidates’ principal campaign committees and federal joint fundraising committees in the names of other people. For the calendar years 2021 through 2023, Hostovich’s conduit contributions aggregated to more than $10,000 during each of those years.
To make these illegal campaign contributions, Hostovich used 11 different people – including employees at the insurance brokerage that employed her, family members of those employees, and individuals who performed personal services for Hostovich and her family.
As part of the scheme, Hostovich contacted one of these individuals or their family members and asked them to contribute individually or have one of their family members contribute to a particular candidate’s campaign or fundraising committee. Hostovich then paid the person the funds via PayPal either before the contribution was made or reimbursed them afterward.
To execute these conduit contributions, Hostovich sometimes explicitly stated that she would advance the money for the contribution or pay the person back for that contribution. Other times, the person had an implicit understanding that Hostovich would advance the money or reimburse them based on her history of advancements and reimbursements of political contributions. Hostovich generally advanced or reimbursed these individuals in amounts that exceeded the exact contribution amount but often the amounts were very close to the contribution amount.
Hostovich admitted in her plea agreement that one of the reasons she engaged in conduit contributions was to secure an appointment to the Kennedy Center Board of Trustees in Washington, D.C. She did not obtain this position.
The recipients of the illegal contributions included a joint fundraising committee that included a United States senator’s principal campaign committee, a principal campaign committee for a U.S. senatorial candidate, principal campaign committees for two members of the U.S. House of Representatives, and a joint fundraising committee that included the principal campaign for a presidential candidate.
At no time did Hostovich reveal to any of these candidate committees or joint fundraising committees that she was the true source of the funds donated by the 11 individuals. Hostovich further admitted that she knew it was unlawful to make conduit contributions and that, before executing this scheme, she made numerous political contributions to federal candidates and served as a host for political fundraisers.
The FBI investigated this matter.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section is prosecuting this case.