Rep. Darrell Issa, R-Vista, is the richest member of Congress, but the candidates who want to take his seat would also be some of the richest lawmakers in the federal government.

Democrat Paul Kerr has about $39.7 million in net worth, a fortune amassed from a real estate investment empire.

Democrat Sara Jacobs has about $11.3 million in net worth, largely from a trust that includes at least $5 million in holdings at Qualcomm, the telecom company founded by her grandfather.

Republicans just entered the race and have not had to file federal financial reports. Issa is not running for re-election.

In the race to replace Rep. Darrell Issa, one of the wealthiest members of Congress, there’s a bank of candidates that come with their own cache of riches.

Financial disclosures show the candidates are notably wealthy, even by the standards of one of the best-off congressional districts in the country. Two of the contenders reported fortunes in the eight-figure range, a level of financial security that is exceptional even in one of the world’s most exclusive clubs: Congress.

Financial disclosure reports show that, among Democrats, Paul Kerr and Sara Jacobs have the highest net worth at $39.7 million and $11.3 million, respectively. Doug Applegate, a practicing lawyer, earned about $275,000 in the first half of 2017. Mike Levin reported earning household income of about $193,000 in 2016, making him the least wealthy of the Democrats.

Across the aisle, Assemblyman Rocky Chavez, R-Oceanside, and Board of Equalization Member Diane Harkey, R-San Celemente, recently declared their candidacy and have not given details about their finances to the Clerk of the House, so not as much information about them is publicly available. In a state reports, however, Chavez reported between $10,001 and $100,000 in income for his wife. Harkey disclosed real estate and a trust worth both between $100,001 and $1 million.


San Juan Capistrano Councilman Brian Maryott, also a Republican, declared his candidacy Wednesday and also has not given information to the House. His state disclosure shows at least $346,000 in investments and more than $200,000 in household income.

All of the candidates are doing much better than the typical constituent of the California’s 49th District, an area that runs from La Jolla and up the coast to Dana Point, and includes some of the country’s most well-heeled communities.

The average household there has a median income just below $81,000. Forty-four percent of residents have earned at least a bachelor’s degree, 9.3 percent live at poverty and 6.6 percent without health insurance — indicators that show a much stronger bill of financial health and opportunities for upward mobility than the country, state and county.

In its annual review of lawmakers and their money, published this month, Roll Call put Issa at the top with an estimated a net worth of $254.7 million. The runner-up, Rep. Michael McCaul, R-Texas, is worth an estimated $107.6 million. Issa has most of his assets in various investments, but began his fortune in the car alarm industry. In all, he has $379.6 million in assets, with $125 million in liabilities, Roll Call reported.


Issa announced earlier this month that he will not seek re-election.

In an effort to prevent unethical conflicts of interest, the Clerk of the House of Representatives requires incumbents and candidates to file itemized reports of their assets, earned and unearned income and debts. The exact amount of what politicians own or owes is not clear since they are only required to report the value of each holding and debt within a range. The lower and upper limits can vary by millions of dollars, and details about their personal residence are not reported.

The Union-Tribune estimated candidates’ wealth by subtracting their minimum total liabilities form their total minimum assets.

Democrats acknowledged that while they might be very comfortable, but not everyone in the district is. They said the recently signed tax bill — a policy that reduced state and local tax deductions that were popular in the district — will hit residents hard. And they said household budgets have been big issues when talking with voters.


“The cost of living here is one of the highest in the state, and while the economy has improved since the depths of the recent recession, they’re not seeing it in their pocketbooks,” Kerr’s campaign manager, Andrew Grunwald, said by email.

Kerr’s fortune was amassed through a real estate investment empire. He enlisted in the Navy after his junior year of high school and went to San Diego State University with help from his veteran benefits. He worked as a security guard and basketball referee and other jobs as he studied, and graduated $20,000 in debt, his campaign said.

He entered the real estate industry, and financial disclosures show he at least partially owns 40 properties across California and Florida, including four that each provide between $100,001 and $5 million in rent per year. Kerr also has seven mortgages, including five debts between $5,000,001 million and $25 million.

While he is doing very well, Kerr’s campaign said he had his own tough beginnings and understands what people in that type of situation face. He was the oldest of six children, and his family struggled to pay medical bills after his mother developed Lou Gehrig’s disease.


“After returning from his service in the Navy, Paul spent over 14 years of his life working minimum-wage jobs to make ends meet, only making it to college by working full-time the entire time he was in school,” Grunwald said.

Records also show that he is the president or a managing member of 51 companies and was paid at least $5,000 from 12 companies. All of his work is in real estate.

Jacobs, the former CEO of a small non-profit organization, has $12.8 million in assets. Her largest investment was in Qualcomm, the company co-founded by her grandfather, Irwin Jacobs. She has between $5,000,0001 and $25 million in that business. Records show that Jacobs’ wealth is held in a trust with her name.

“Sara’s keenly aware that she is very fortunate, and as a result, she’s always felt a responsibility to dedicate her career to creating a system that provides opportunities for others – and that’s what her campaign for Congress is all about,” spokeswoman Chelsea Brossard said in an email.


Jacobs, 28, has worked largely with international development organizations on projects in Africa, and her career most recently included a position as the CEO of a non-profit that tracks the ability of schools around the world to access the internet.

Besides a series of securities held by the trust, she also owns an investment property in Manhattan and another in Washington, D.C. that both provide rental income.

According to tax records, the D.C. condo was purchased by Jacobs’ trust in May 2013 for $2.9 million, and campaign records show that it has a $500,001 to $1 million mortgages. Records provided by a D.C.-area real estate agent show the property there was rented in March 2016 for $14,000 per month.

Adam Berkowitz, a campaign manager for Levin, said the candidate and his wife face a lot of the same financial issues that the district’s residents handle with health care, education, child care and other expenses, even with two incomes.


“Mike understands the struggles faced by middle income families in the district — he is part of one himself,” Berkowitz said.

Levin was paid a $173,000 salary in 2016 from FuelCell Energy in 2016, but left his position after he launched his campaign last year. He reported receiving another $20,000 from Energy and Environment Inc.

While campaigns do not disclose details about their personal residence, Berkowitz said Levin does have a mortgage and has built equity on his home.

Applegate’s campaign did not return a request for comment, but his records show he has at least $450,000 in reportable assets. He owns a rental property in Tempe, Arizona, valued between $100,001 and $250,000, collecting as much as $15,000 in annual rent. The other, in Alexandria, Virginia, is worth between $500,001 and $1 million, and provides $15,001 and $50,000 in rental income.


A retired Marine Corps colonel, Applegate also reported $48,000 in annual military retirement in his 2016 disclosure, but omitted that income in his latest report.


Twitter: @jptstewart

joshua.stewart@sduniontribune.com

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