Webster accused of conflict in suit

KEITH WEBSTER

Anderson City Councilman Keith Webster, 57, is being accused of conflict of interest and violating the California Political Reform Act by failing to excuse himself from council discussions that might have had an effect on a corporation for which he served as secretary.

Webster, a former mayor, disputed those allegations saying he does not believe he did anything wrong.

"My intentions were pure," he said. "I never believed I had a conflict of interest. I know in my mind and in my heart that I did not do anything wrong. People who know me know that I'm trying to help people."

Webster added that although he was secretary, he was not a partner to the company.

"All I did was put loan packages together for them, commercial loans," Webster told the Valley Post on Monday. "I was not a partner or anything like that."

In documents filed with the state's Fair Political Practices Commission (FPPC) early this month, Webster is accused of failing to excuse himself from council discussions in August that apparently centered on efforts to clean up a mobile home park next to property owned by River Run Cove Land Development, for which Webster served as the company's secretary.

River Run Cove Land Development and the mobile home park are engaged in a legal battle, supporting documents to the complaint said.

"At no time before, during or after the meeting did he (Webster) disclose that he was an officer of River Run Cove Land Development Co. Inc., in present litigation with the park, nor did he move to recuse himself," according to supporting documents to the complaint.

It's also alleged that Webster's economic disclosure statements failed to mention his official standing with the company or reveal that he had received about $15,000 for his secretarial duties between August 2007 and January of this year.

Webster, who last month received the Anderson Chamber of Commerce distinguished service award for his community service work, said his failure to list the business on his financial disclosure statements was an oversight and he has since amended those documents.

The FPPC complaint was filed by former Anderson business owner Richard Hammerbeck on behalf of Gene LaTour of Redding.

The alleged conflict of interest surfaced during an unrelated civil lawsuit filed by LaTour, an original investor in the River Run Cove Land Development company, against Bill Johnson, its chief executive officer, Hammerbeck said. The land development company filed for Chapter 11 bankruptcy protection in July.

According to the sworn complaint and supporting documents, Webster failed to excuse himself from two public council discussions and a closed council session in August and September regarding potential litigation against River Cove Mobile Home Park.

Webster said Friday that he does not recall the closed session. He said the mobile home park issue had nothing to do with the development company so he did not abstain from the discussions.

"It never entered my mind," he said. "I did not see that it had anything to do with River Run Cove Land Development."

Webster also said that he was not a decision-maker or partner in the corporation and is not a part of the lawsuit between LaTour and Johnson.

He was removed as the corporation's secretary in January, the complaint's supporting documents show.

Roman Porter, executive director of the FPPC, confirmed Friday that the complaint has been filed, but said it has not yet been determined if it will be investigated. The FPPC has about two weeks to make that decision, he said.

The commission investigates alleged violations of the 1974 Political Reform Act and imposes penalties when appropriate. It regulates campaign financing and spending, financial conflicts of interest, lobbyist registration, post-governmental employment, mass mailings at public expense, and gifts and honoraria given to public officials and candidates.