Undercover FBI agents, posing as Hollywood producers in search of a tax credit, allegedly set up a $50,000 “special fund” with Ron Calderon’s name on it.

The state Senator, according to an affidavit obtained by Al Jazeera America, allegedly spent those funds on his son’s tuition, a Lady Gaga concert, airfare for a spring break trip to Miami, and a sham non-profit organization controlled by his brother. In total, the Montebello Democrat politician allegedly lined his pockets with $60,000 from undercover agents. But, in return, the phony film producers didn’t get much.

“He didn’t get it done on the film credits,” Anthony York, a Los Angeles Times political reporter, pointed out on a recent News 10 Capitol Connection podcast. “The tax credit amendment was never even introduced.”

To get results on the alleged bribe, the FBI might have paid more.

Ten special interest groups effectively circumvented state campaign finance limits by transferring more than three-quarters of a million dollars to Diversity PAC, which, in turn, Calderon used to pay for private jets, five-star hotels, elite golf courses and extravagant meals at the country’s finest restaurants. These same special interest groups that funneled hundreds of thousands of dollars to a political action committee under Calderon’s control benefited from bills introduced by the state senator and repeatedly earned his vote on legislative matters, an analysis of campaign finance and legislative records has found.

$1.2 Million to Diversity PAC

In its six-year history, Diversity PAC, which is referenced in the FBI’s affidavit, has collected more than $1.2 million in campaign contributions from the biggest names in the insurance, energy and pharmaceutical industries. If the FBI were added to the list of Diversity PAC contributors, it would barely rank in the Top 10. (See chart below.)

The two biggest contributors to Diversity PAC, United Services Automobile Association and PG&E, transferred $120,000 and $117,500, respectively, to the organization. The PAC has also accepted $85,000 from Philip Morris, $78,500 from Sempra Energy, $78,500 from the Insurance Brokers and Agents Candidate PAC, $75,000 from American Bankers Insurance Company of Florida, $55,000 from AT&T, $55,000 from Walgreens, $50,000 from Eli Lily and Company, and $42,500 from the Pharmaceutical Research and Manufacturers of America.

Special Interest Donations After FBI Raid

Even after the FBI’s June 4 raid of Calderon’s offices, special interest groups didn’t shy away from Diversity PAC. On June 10, just six days after the FBI executed search warrants on Calderon’s Capitol offices, Diversity PAC collected $90,000 in contributions from PG&E, 7-Eleven, First American Title Insurance, and Philip Morris USA.

The following months, Diversity PAC collected more checks from the Insurance Brokers and Agents Issues PAC, Professional Engineers in CA Government, and Sempra Energy. In all, the PAC has accepted $128,000, more than double the amount of the FBI’s alleged bribes, since June 6.

Pay Raise for Professional Engineers Union

Some special interest groups didn’t have to wait long to see a return on their investment. Less than three weeks after Diversity PAC accepted an $8,000 check from the Professional Engineers in CA Government, Calderon voted for the union’s new collective bargaining agreement with the state. The union, which has contributed $27,500 in Diversity PAC’s six-year history, considered the new contract, Assembly Bill 478, a win for the organization.

In addition to a 3.3 percent salary increase, AB 478, by Assemblyman Jimmy Gomez, D-East Los Angeles, granted the engineers’ union “other favorable provisions in the contract, including a limited vacation cash out option, optional enrollment in an enhanced vision plan, clarification of the license application reimbursement, and improvements to alternate work schedules, telecommuting, and hardship transfers, as well as limits on involuntary transfers.”

Calderon as Chairman of Senate Insurance Committee

While some organizations delivered checks near key votes, other industries sustained a long-term relationship with Calderon and Diversity PAC. The insurance industry’s $331,500 in campaign checks topped the PAC’s list of contributors by industry. Insurance groups, such as USAA, American Bankers Insurance Company of Florida and the Insurance Brokers and Agents Candidate PAC, have relied on Calderon to shepherd bills through the Senate Insurance Committee, which he leads as its chairman.

Last week, Senate President Pro Tem Darrell Steinberg, D-Sacramento, asked the Senate Rules Committee to remove Calderon from his committee assignments, including his chairmanship of the Senate Insurance Committee. However, if the Rules Committee acts on Steinberg’s request, it won’t reverse the bills Calderon carried this session on behalf of insurance interests.

Senate Bill 251, which was signed into law by Governor Jerry Brown, allows insurance companies to transmit some documents electronically instead of by mail. Another Calderon bill that was signed into law, Senate Bill 281, allows policyholders to tap into life insurance policies before death. Both bills were listed on state lobbying disclosure reports for USAA. Calderon highlighted both bills in an October press release on his 2013 legislative achievements.

In addition to carrying legislation for the insurance industry, Calderon introduced a bill this session that benefited First American Title, another top contributor to Diversity PAC. Senate Bill 310, which was passed and signed into law on September 6, exempted title companies from liability in certain circumstances involving notice of default proceedings.

Calderon’s Support for Energy and Utility Companies

In 2009, Calderon served as a member of the Senate Committee on Energy, Utilities and Communications, which allowed him and Diversity PAC to cultivate a relationship with energy and telecommunications companies. The following year, when Calderon was replaced, one energy industry group considered it a loss for their interests. “The removal of the more moderate Calderon is disappointing as he typically took supportive positions to most of our business interests,” the California Alliance for Competitive Energy Solutions wrote in a January 2010 newsletter.

Overall, the energy sector donated $197,000 to Diversity PAC, making it the second biggest contributor to the political action committee. On June 10, Diversity PAC accepted a $40,000 check from PG&E, followed by a $15,000 check from Sempra Energy in late September.

This session, PG&E and Sempra made a major end of session push to pass Assembly Bill 327, which allowed state regulators to restructure energy rates. Calderon was among the votes in favor of the proposal that would benefit energy companies.

AT&T, which has donated $55,000 to Diversity PAC, has received support from Calderon in the past, including last year’s controversial new regulations on voice-over internet protocol services.

A shadowy political action committee cited in the FBI’s case against state Senator Ron Calderon, D-Montebello, has spent hundreds of thousands of dollars on private jets, five-star hotels, elite golf courses and extravagant meals at the country’s finest restaurants, a CalWatchdog.com analysis of campaign finance reports has found.

But the biggest questions might be over nearly half-a-million dollars in mysterious payments funneled to a professional political fundraiser, who promises on his website to “put the FUN in fundraising!”

According to the FBI affidavit that was obtained by Al Jazeera America, “Californians for Diversity is a charitable arm of the Diversity Political Action Committee.” In its five year history, Diversity PAC, according to campaign finance reports, has raised more than $1.2 million. More than two-thirds of those funds, $813,766, has been spent on payments to hotels, golf courses, resorts and professional fundraisers.

Half-million paid to Capitol fundraiser

By far the largest recipient of Diversity PAC funds has been John Jacobs and his professional fundraising company, Capitol Alliance. Diversity PAC has paid Capitol Alliance and John Jacobs more than $462,750 in combined payments for consulting fees and fundraising expenses. Jacobs did not respond to CalWatchdog.com’s email request for comment.

“The Capitol Alliance is a broad-based professional political consulting and fundraising services company,” the company states on its website. “We have the experience and know how to creating long lasting mutually beneficial relations for our clients.”

Among the questions raised by Diversity PAC’s campaign finance report is why the organization split expenditures, of approximate value, between John Jacobs and Jacobs’ company, Capitol Alliance. As an individual, John Jacobs received more than $175,000 in campaign funds from Diversity PAC. Over the same period, the PAC disbursed $237,000 to The Capitol Alliance with another $50,000 listed on campaign reports under a third category, “John Jacobs, DBA — The Capitol Alliance.”

While little is known about the payments to the Sacramento fundraiser, even less is known about the PAC itself. The Capitol Alliance website maintained the only public information about Diversity PAC. Since Al Jazeera America’s bombshell report, Capitol Alliance has scrubbed any reference to Diversity PAC from its website. However, CalWatchdog.com archived copies of the website in September.

“The Diversity PAC was founded in December 2007, at the suggestion of concerned private citizens nad [sic] business interests; and with the financial support of key founding members, all with diverse backgrounds, education and experience,” the archived version of the website explained of Diversity PAC. “Since then, ‘DPAC’ developed, created and implemented strategic grass rooots [sic] election campaigns that directly resulted in the election of intelligent and thoughful [sic] candidates who were concerned, focused, and committed to addressing the critical business issues facing California in the 21st Century.”

“We put the FUN in fundraising!”

Rather than focus on the “critical business issues facing California,” Diversity PAC relied on its fundraiser to deliver luxurious meetings, events and conferences. According to the Capitol Alliance website, the fundraising company boasts as its motto, “We put the FUN in fundraising!”

Diversity PAC’s fun included nearly $220,000 spent at Bandon Dunes, Pebble Beach, Indian Wells and the American Club — with $32,000 in expenditures at these luxurious resorts incurred after the FBI’s June 6 raid on Calderon’s offices.

Topping the list of the organization’s favorite destinations with more than $104,000 in expenditures is the Bandon Dunes Resort. Described by Golf Odyssey as “the single best place to play golf in the world,” the exclusive Oregon golf resort served as the venue for Diversity PAC’s 2013 Fall Policy Conference. It scheduled a “Winter Policy Conference” at the golf resort next month.

“Picture a cross between Pebble Beach and Carnoustie — with a pinch of Pine Valley for good measure — and you have Bandon Dunes,” Golfweek’s Dave Seanor explains of the resort.

But beneficiaries of Diversity PAC didn’t need to imagine Pebble Beach. In September, the organization spent $9,000 in expenditures at Pebble Beach.

The committee’s golf junkets spanned the state. Earlier this year, the organization rang up more than $57,000 in two trips to the Hyatt Regency Indian Wells. According to the Capitol Alliance website prior to its removal, DPAC chose Indian Wells for a Winter Conference in January and its Spring Break Leadership Conference in March.

Not content to enjoy the West Coast’s luxury resorts, Diversity PAC also accumulated more than $33,500 at the American Club, Wisconsin’s first and only five-star hotel. “A place untouched by neon lights, fast food and the cares of cable news,” the American Club promises guests on its website that it’s a place where “you can focus on the things that really matter to you.”

Chartered jets and limousine rentals

To reach these five-star resorts, Diversity PAC relied on chartered flights and limousine rentals charging more than $56,000 in luxury travel. The committee selected charter companies that specialize in providing privacy to “a discriminating list of clients.”

“Our seasoned pilot crews fly you in luxury, privacy and security to one of hundreds of airports not served by commercial airlines,” Axis Jet, which received $10,800 in Diversity PAC funds last November, explains its brochure. “Today, we serve as an aviation partner to a discriminating list of clients who enjoy all the benefits and value that aircraft ownership has to offer.”

Diversity PAC also accrued nearly $26,000 in expenses with Trans Global Travel, $10,100 in expenses to Byron McCluskey Aviation Services, $8,753 in expenses with Tower Aviation Services, LLC, and $180 in expenses with American Limousine and Transportation.

PAC payments to Ron and Thomas Calderon

Ron, and his brother Thomas, also accepted thousands of dollars directly from Diversity PAC. The Calderon Group Inc., a political consulting company owned by Thomas, received $13,607 from Diversity PAC in addition to $1,183 in reimbursements paid directly to Thomas. Meanwhile, Ron’s officeholder account accepted $1,562 in campaign funds directed from the PAC.

Ron and Thomas also benefited, according to the FBI’s affidavit, from more than $10,000 in campaign funds transferred from Diversity PAC to Californians for Diversity.

“We have this nonprofit. It is called Californians for Diversity,” Ron Calderon told an undercover FBI agent, according to an affidavit obtained by Al Jazeera America. “So, we are gonna build this thing up and … then, Tom and I down the road, we build that up, we can pay ourselves. Just kind of make, you know, part of a living.”

On July 16, after the FBI had already raided the State Senator’s offices based on evidence that he had used Californians for Diversity as a slush fund, the committee transferred $13,607 from the PAC to Californians for Diversity.

In recent years, Diversity PAC has provided minimal support to political candidates and campaign committees. On the Capitol Alliance website, Diversity PAC listed past support for State Senator Rod Wright, Los Angeles City Councilman Curren Price; and Rep. Juan Vargas, D-El Centro. In 2010, the committee transferred $150,000 to the “Put California Back to Work” committee, which spent heavily to elect Vargas to the state Senate.