Schwarzenneger loan for recall ruled illegal
A Superior Court judge ruled Monday that Gov. Arnold Schwarzenegger violated state election law by using a $4.5-million bank loan to help finance his campaign in last fall’s recall race.
Superior Court Judge Loren E. McMaster, saying that such loans could open the way for money laundering of campaign donations, ordered Schwarzenegger to cease raising money to retire the debt, and not use money he has already raised to repay the loan.