California election regulators have closed an investigation into Ricardo Lara, the elected state insurance commissioner who was the subject of a 2022 allegation that he misused campaign funds.
In a letter dated late last month, the Fair Political Practices Commission said it had closed its long-running review due to a lack of evidence.
“Our investigation found insufficient evidence to support a finding that you violated the (California Political Reform) Act, and we are closing this case without further action,” the commission told the complainants in a letter posted on the agency website.
The complaint was filed in 2022 by leaders at Consumer Watchdog, a Los Angeles advocacy group that has long been critical of Lara and his relationship with insurers.
Consumer Watchdog alleged in a sworn complaint three years ago that Lara wrongly engaged in campaign money laundering and violated reporting rules related to his 2022 re-election race and three political committees.
More specifically, the nonprofit accused the LGBTQ Caucus Leadership Fund — where Lara was an ex officio member and former vice chair — of accepting $122,500 from insurance companies in 2021 and 2022, then directing a similar amount to committees supporting Lara’s reelection.
The complaint noted specific dates in which political contributions were accepted by the LGBTQ Caucus committee and then transferred to outside entities.
“The movement of this money from the insurance industry … on the exact same day cannot be a coincidence,” Consumer Watchdog wrote.
The closure letter, which was signed by a top lawyer at the commission’s enforcement division, did not explain or elaborate on the commission’s finding that there was not enough evidence to support a finding of a violation of state campaign laws.
Lara, a former state senator from Bell Gardens who earned his college degree from San Diego State University, was elected to his state office in 2018.
Within months of assuming office, he began accepting campaign donations from insurers and others associated with the insurance industry, an investigation by The San Diego Union-Tribune found in 2019.
After the donations were disclosed, Lara issued a public apology and returned tens of thousands of dollars to donors.
