Copyright 2004, San Diego Union-Tribune

$100,000 loan to fellow board member was not listed on required financial disclosure.

(San Diego Union-Tribune 10/27/04) -- A fire board member failed to list a $100,000 loan when he disclosed his finances in August, and the debt might violate a state law barring loans between fellow board members.

Lance Vollmer, a member of the Vista Fire Protection District Board, said he did not list the loan on his disclosure statement, called a "statement of economic interests," because he had not yet received the money. He said he received the money this month.

However, a deed of trust filed with the County Recorder's Office on May 24, 2004, indicates that Vollmer and his wife borrowed $100,000 from the Alice B. Miller Trust. Fellow fire board member Read Miller is listed as trustee.

California Government Code Section 87460 (a) prohibits elected board members from receiving loans from fellow board members, to prevent financial debts from influencing votes.

The Vollmers put up their house as collateral.

Vollmer, an incumbent, is one of five candidates running for three open seats on the fire board.

After being asked about the loan by reporters Monday, Vollmer amended his financial disclosure statement to include the loan.

"I actually appreciate you making me aware of it," he told a Union-Tribune reporter.

The loan and the failure to disclose it are the subject of a state Fair Political Practices Commission complaint filed by Paul Palladino, whom Vollmer ordered removed from a raucous fire board meeting in April. Sheriff's deputies refused to carry out the order, and Palladino later accused Vollmer of "gestapo tactics."

The county registrar's Web site said fire board candidates were required to file statements of economic interest Aug. 6 covering a yearlong period up to that date.

Tim McNamara of the registrar's office said violations may result in a fine but he did not know the amount because the registrar's office is not an enforcement agency.

Sigrid Bathan, a spokeswoman for the Fair Political Practices Commission, which enforces campaign laws, said she doesn't comment on situations the commission may have to investigate.

Vollmer said Monday he didn't intend to conceal the loan.

"If I was trying to do something dishonest I would have borrowed the money as a fictitious entity," he said.

Vollmer said the loan doesn't violate the law barring loans between fellow board members because he did not receive the loan from Miller but from a family trust.

"It is the Alice B. Miller Trust, of which he's a trustee," Vollmer said.

However, Peter Scheer, executive director of the California First Amendment Coalition, said such an explanation "sounds like a distinction without a difference."

Scheer said he couldn't comment directly on the loan because he was not familiar with its details, but he said, "It certainly sounds like the kind of loan that the law is concerned with: a loan where one elected official is lending money to another elected official, even if technically it doesn't come out his pocket."

Asked about the loan, Miller said, "I must admit there's a bunch of codes and I try to be somewhat aware and I wasn't aware of this one."

He said the loan may not be prohibited by the act because it was a business loan, not a personal one. He said it is secured by the Vollmers' personal property because that is a requirement of the family trust.

"It is a business loan for his service station business," Miller said.

Scheer said that may not matter if the recipient is personally liable for repayment.

Bob Stern of the Center for Government Studies in Los Angeles said that if the person who controlled the trust was a fellow board member, it may be illegal.

"Putting aside legalities, you should not be accepting loans from colleagues," Stern added. "It's too much of a 'You scratch my back, I'll scratch yours.' "

Miller said: "If there's anything that's not proper, I'm sure Lance will jump on it. I've known him for years and know him to be an honorable guy."

The Vista Fire Protection District includes about 17,000 residents in the unincorporated area ringing the city, and hires the city fire department for emergency services.

The other fire board candidates are Ron Wootton, an incumbent, and Margarette Morgan, Mike McReynolds and Robert Fougner.

By Michael Burge