Subpoenas filed in Kevin Shelly Case.......

[Joanne98]

Two San Francisco men have received subpoenas from federal prosecutors investigating whether taxpayer money was funneled illegally into Kevin Shelley's 2002 campaign for secretary of state, The Chronicle has learned.

Lawyers for Jeffrey Chen and Steve Chen said Wednesday that the subpoenas from a grand jury in Sacramento concerned two $25,000 donations made to then- Assemblyman Shelley's campaign. One came from Steve Chen, the other from a company incorporated by Jeffrey Chen, Gemini Advisors.

The donations were made shortly after Steve Chen and Gemini Advisors received payments of nearly identical amounts from the San Francisco Neighbors Resource Center, a nonprofit group founded by Julie Lee, a San Francisco political power broker and volunteer fund-raiser for Shelley.

In 2000, Shelley, as Democratic majority leader of the Assembly, helped arrange a $500,000 state grant for the Lee's nonprofit group. The grant was to be used to develop a center for immigrants on San Francisco's west side.


http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/09/02/MNG6E8IB801.DTL