O’Donnell, of O’Donnell & Associates in Los Angeles, was accused of reimbursing employees of his law firm and other individuals who gave $26,000 in campaign contributions to a committee supporting a presidential candidate, believed to be former U.S. Senator John Edwards (D-N.C.).

On June 8, U.S. District Judge S. James Otero of the Central District of California granted O’Donnell’s motion to dismiss the first two counts on the ground that the Federal Election Campaign Act did not cover the reimbursement of contributions or indirect contributions. Federal prosecutors planned to appeal that decision to the U.S. Court of Appeals for the 9th Circuit.