An insurance brokerage executive from La Cañada Flintridge named Teena Maria Hostovich has reportedly agreed to plead guilty to making more than $10,000 in illegal campaign contributions, which is a felony offense. According to a press release from the U.S. Attorney's Office in the Central District of California, Hostovich, 66, was charged with making these illicit contributions through other individuals, in a practice known as "conduit" contributions, to various federal candidates and fundraising committees over three years.
Working at the insurance brokerage, Hostovich employed a scheme that involved 11 different individuals, including employees and those performing personal services for her family, to make contributions to political candidates from May 2020 through 2023, which is acknowledged in her plea agreement. Charged with a single-count information, she faces a potential maximum sentence of two years in a federal prison and has agreed to a fine of $43,500. In her initial appearance, Hostovich is expected in the near future to face the U.S. District Court in Los Angeles.
Hostovich's system for funneling these contributions involved either upfront payments or subsequent reimbursements to the persons making donations in their names but with her money. Payments were made through platforms such as PayPal, often matching or exceeding the contribution amounts. While some of these transactions were explicit, others relied on an implicit understanding based on past reimbursements of political contributions.
The goal behind Hostovich's elaborate scheme appears to have been politically motivated, with aspirations for a high-profile appointment. In her plea, Hostovich admitted that one of her intended outcomes was securing a coveted position on the Kennedy Center Board of Trustees, a goal that remained unachieved despite her efforts. The illegal contributions were made to a diverse array of political entities, including a joint fundraising committee with a U.S. Senator's principal campaign committee and the campaigns of a senatorial candidate, two U.S. House members, and a presidential candidate. None of the recipients were aware that Hostovich was the real donor behind the contributions made by the 11 unnamed individuals.
The matter, identified and investigated by the FBI, has now been taken up by Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section. Public Information Officer Ciaran McEvoy announced the developments in the case, detailing Hostovich's expected legal proceedings and the repercussions of her unlawful actions.
