But O'Donnell's bright star has suddenly dimmed considerably.
On Thursday, July 25, 2008, O'Donnell was indicted on charges of directing $26,000 to the campaign fund of a 2004 presidential candidate through his own employees — employees of his law firm, to be exact. Indicted by a federal grand jury in Los Angeles, the charges are three felonies, and the sentence, should the maximum be applied in the event that he is convicted on all charges, would be 12 years in prison.
Mr. O'Donnell is accused of asking the employees in question to make contributions to the campaign and then reimbursing them for doing so. These types of contributions are a violation of federal law because they hide the names of the real contributors. They are called "conduit" contributions.
The indictment against Mr. O'Donnell makes no mention of the name of the presidential candidate in question; however, speculators say the candidate was John Edwards.
Pierce O'Donnell's lawyers had tried to get the accusations handled by the Federal Elections Commission, saying that they wondered if his indictment is politically motivated. They are arguing that the charges could be in retaliation for O'Donnell speaking out against the Bush administration and taking Katrina clients in a lawsuit against the government.
Mr. O'Donnell's attorneys have issued a statement which basically says they are disappointed that the allegations could have a major impact on his career. Because he is a distinguished lawyer, they argue, the nature of the alleged crime is not in proportion to the threat he is facing. They have also stated that the facts only show a violation on a small scale at the very most.
O'Donnell's own statement came yesterday, not long after the news that he had been indicted. He basically said that although he would not comment on the charges, he would continue to fight for Katrina victims. Their trial is tentatively scheduled for the beginning of 2009. Thanking everyone for their support, he said he will be fighting the charges with "unbridled ferocity."
Before the indictment, the news that Mr. O'Donnell had suggested that he would plead to a misdemeanor and pay a fine was released. However, the deal could not be made because the US Attorney's office said that a felony guilty plea would have to be entered, which would mean that O'Donnell would no longer be allowed to practice law in California.
In fact, O'Donnell pleaded no contest to similar charges when Jim Hahn ran for mayor in 2001. The repercussions from that accusation ended in Mr. O'Donnell being ordered to pay $155,200 in fines. He was placed on three years probation and could not participate in fundraising for three years.
That sentence was rendered by LA Superior Court Judge Alex Ricciardulli after Mr. O'Donnell's lawyers negotiated the deal with prosecutors. The contributions made to Mr. Hahn's campaign were allegedly made under false names. O'Donnell originally had been charged with 26 misdemeanor counts of taking $25,500 from employees, giving it to the campaign, and returning their money afterwards.
Mr. Hahn was not charged with any wrongdoing and denied knowing of any irregularities in the campaign monies. Mr. O'Donnell's words on the matter included a criticism of the District Attorney's office, saying they should not have filed criminal charges. He said the violations were technical.
Charges were dismissed against the employees of Mr. O'Donnell who were allegedly a part of the scheme to donate the money in their names and be reimbursed by O'Donnell. The law firm's office administrator, her daughter, a legal secretary, Mr. O'Donnell's personal secretary, and a paralegal who worked for Mr. O'Donnell were all originally charged, as well.
