A former insurance brokerage executive from La Cañada Flintridge was sentenced Friday to a term of home confinement for breaking federal campaign laws by making straw donations to a joint fundraising committee.
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Teena Hostovich, 67, pleaded guilty in July in downtown Los Angeles to making annual contributions of more than $10,000 in the name of another person, a felony carrying a possible prison sentence of up to two years, according to the U.S. Department of Justice.
As part of her plea, Hostovich agreed to pay a $43,500 fine.
U.S. District Judge Cynthia Valenzuela sentenced her Friday to one year of probation, including eight months of home confinement.
Hostovich admitted in her plea agreement to making a total of $75,700 in contributions to federal candidates' campaigns and fundraising committees in the names of others for the years 2021 through 2023.
She also acknowledged that one of the reasons she engaged in such contributions was to secure an unpaid appointment to the Kennedy Center Board of Trustees in Washington, D.C. She did not obtain the position.
The government is asking for an eight-month prison term, while Hostovich's attorneys recommend probation, home detention and a substantial fine.
DOJ attorneys wrote in court papers that a prison sentence is not uncommon for "a defendant who engages in conduct that undermines our democratic system."
An attorney for Hostovich could not immediately be reached for comment.
To make the straw donations, Hostovich used the names of 11 different people -- including employees at the insurance brokerage that employed her, family members of those employees, as well as people who performed personal services for Hostovich and her family, federal prosecutors said.
She often stated that she would advance the money for the contribution or pay the person back. Other times, the person who contributed had an implicit understanding that Hostovich would advance or reimburse the money, according to the DOJ.
Prosecutors say Hostovich failed to reveal to any of the committees that she was the true source of the funds donated by the 11 individuals. Hostovich admitted she knew it was unlawful to make conduit contributions and that, before executing the scheme, she made numerous political contributions to federal candidates and served as a host for Democratic political fundraisers.
An online biography promoting a book Hostovich wrote in 2024 on navigating a career in corporate America touted Hostovich as a member of the Clinton Global Initiative and states that former President Joe Biden appointed her to serve on the President's Advisory Committee on the Arts.
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