State watchdog and District Attorney’s Office dismiss Supervisor’s allegations against opponent
SAN LUIS OBISPO COUNTY, Calif. (KEYT) – A statewide watchdog and county prosecutor have found that allegations of campaign finance violations filed against a challenger in the upcoming Supervisor's race were unfounded, but the Supervisor who filed them argues they highlight a bigger issue.
On Sunday, Feb. 15, San Luis Obispo County Fourth District Supervisor Jimmy Paulding announced that he had filed a formal complaint with both the California Fair Political Practices Commission (FPPC) and the County's District Attorney's Office.
The complaint alleged that Adam Verdin, a candidate for Supervisor in the same district, reported a donation from local development firm Covelop Inc. that was double the legal limit of $5,900 per donor, per election.
Supervisor Paulding noted the Covelop Inc. donation he wanted investigated was reported on a campaign statement that Verdin signed on Jan. 29, 2026, and went on to highlight in his letter to the state's Fair Political Practices Commission that, "Verdin’s campaign has accepted maximum or near-maximum donations from multiple development-linked donors with active interests in county land use decisions."
According to Supervisor Paulding in Sunday's complaint, Verdin's defense of the developer donations showed, "a troubling disregard for the purpose of contribution limits and pay-to-play laws, which are designed to prevent both actual corruption and the appearance of special-interest influence."
As of Jan. 1, 2025, state law requires elected officials in California who receive contributions over $250 to recuse themselves from decisions involving the contributor for the next 12 months.
"Campaign finance laws exist to protect public trust, not to manufacture controversy where none exists. It's disappointing to see the incumbent mischaracterize campaign law for a headline," countered Verdin when reached for comment. "Covelop, Inc.'s $11,800 contributions to date to the Verdin campaign were allocated $5,900 to the June 2026 primary election and $5,900 to the November 2026 general election. The Verdin campaign report clearly reflects this allocation of the two Covelop, Inc. contributions on pages 14 and 26 of its year-end 2025 campaign report filed with the County Clerk."
The distinction between primary and general election contributions was noted by state and county oversight groups this week.
The FPPC issued a written dismissal of the allegations this week and the District Attorney's Office concluded in a written statement Thursday to Supervisor Paulding that it's Public Integrity Unit, "found no evidence to support your allegation."
Undeterred, Supervisor Paulding posted on Facebook that while the FPPC found no technical violation of campaign finance rules, "voters should look at the bigger picture."
"Before I was elected, developer special interests had controlled South County for years. The previous Supervisor was primarily funded by them, and those same developers fought hard to defeat me," Supervisor Paulding stated. "Now those same special interests are funneling tens of thousands of dollars into my opponent's campaign".
As it currently stands, the race for the Fourth District is between Supervisor Paulding and Verdin.
Without another candidate entering the race before the March 6 filing deadline, "the election will be decided in June, and there will be no general election" detailed Supervisor Paulding.
In response, Your News Channel spoke with Adam Verdin who noted he would return any general election campaign contributions in accordance with state law and that he had serious ethical concerns about Supervisor Paulding's allegations.
"A sitting attorney purporting illegal activity when, on its face, it isn't illegal is troubling conduct for an elected official and a licensed attorney," Verdin shared with Your News Channel Friday. "These allegations are a distraction from the real issues. I've worked for many years to support affordable housing in the local area including the creation of the first warming center in the South County region and years of work with People's Self-Help Housing."
