Legal aid group subpoenaed on suspected service to illegals

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Investigators subpoenaed records from a prominent California legal aid group to determine whether it has violated federal rules by using taxpayer money to perform work for illegal aliens.

The California Rural Legal Assistance Corp. (CRLA), which is fighting the subpoena, has until next week to explain to a judge in Washington why it should not turn over client records to the federal Legal Services Corp.

Inspector general investigators say they've been stymied in the probe into whether the California legal group focuses its resources on farm worker and Latino issues while limiting services to inner-city residents and others, according to court filings.

An interim report by the Legal Services' inspector general to Congress last year also found that the legal aid group's management practices "at least create the condition in which representing ineligible aliens is possible without detection."

The report cited a confidential source as saying that "there was a clear feeling among certain CRLA staff that anyone unwilling to serve undocumented persons is a bad person."

The Legal Services Corp is a federally funded agency based in Washington that funds organizations across the country to provide legal services to low-income people, including paying more than half of the California Rural Legal Assistance Corp.'s $12.5 million budget last year.

The director of the San Francisco-based legal aid group said the organization does not provide services to illegal aliens because federal rules prohibit the practice. Violations could jeopardize federal funding under federal rules.

"You cannot serve undocumented clients with federal dollars," said Jose Padilla, executive director of the group. "A random selection ... would reveal we're complying with those regulations."

Ronald Merryman, acting inspector general for Legal Services Corp., said he could not comment on the subpoena.

"We're still in the investigation," he said.

Mr. Padilla said his organization is fighting the subpoena for thousands of client records because of concern over client confidentiality. He said he worries that potential clients will not come forward for services for fear their personal information will be made public.

But federal investigators say the subpoena seeks "non-privileged" documents and makes no demand for personal social security information or case summaries.

An affidavit filed in federal court by a Legal Services Corp. investigator said the agency needs the records to close its investigation.

The interim report to Congress last year also found that Mr. Padilla broke rules against engaging in political activity as an endorser of a petition called "The World Can't Wait: Drive Out the Bush Regime".

The report said that although he is free to express his political convictions on personal time, Mr. Padilla improperly was identified as "of CLRA."

According to the group's tax return, Mr. Padilla earned a salary of $121,000 in 2005.

Mr. Padilla "flatly dismissed" accusations of engaging in politics in any official capacity. He said the petition noted his affiliation for "identification purposes only." He also said the group was later cleared of any improper activities by the Legal Services Corp and the IRS.

In a 76-page response to the inspector general, Mr. Padilla's group also characterized a confidential source supplying information to the inspector general as a disgruntled former employee.