California regulators said Monday that a conservative Arizona group hid the true source of an $11 million political donation in what they called the largest campaign-money-laundering scheme in state history. The donation passed through three conservative out-of-state political organizations before it landed in California on Oct. 15 with a Sacramento political committee that supports Proposition 32, a measure to restrict union political activity, and opposes Proposition 30, Gov. Jerry Brown's tax-raising initiative, the Fair Political Practices Commission said. One of the organizations that handled the money has ties to the billionaire, libertarian Koch brothers, who have spent tens of...
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