Laundering of Moriarty Election Gift Investigated

Assemblyman Burt Margolin said Thursday that the FBI and the Orange County district attorney are investigating an allegedly laundered campaign contribution he received from fireworks manufacturer W. Patrick Moriarty.

The contribution was delivered to Margolin’s office by a staff member of then-Assemblyman Bruce Young (D-Norwalk).

Several FBI and Orange County district attorney’s investigators have been in the Capitol for the past week, attempting to talk to about half a dozen lawmakers, according to legislative sources.

Margolin, a Los Angeles Democrat who opposes fireworks, returned the $7,500 donation in May, 1982, as soon as he learned that the donor, Moriarty associate John E. (Pete) Murphy, had ties to the fireworks industry.

Measure Vetoed

In 1981 and 1982, Moriarty and his associates lobbied for passage of a state law that would prohibit local governments from banning the sale of so-called “safe-and-sane” fireworks manufactured by Moriarty’s Red Devil fireworks company in Anaheim. The bill was passed by the Legislature but was vetoed by then-Gov. Edmund G. Brown Jr.

In March, Moriarty pleaded guilty to a series of fraud charges and agreed to provide information to the government about politicians who allegedly received bribes from him in the form of money, prostitutes, vehicles, vacation housing and the hiring of relatives.

Margolin said he spent about 30 minutes with a member of the FBI and an investigator from the Orange County district attorney’s office on Tuesday. He said the entire interview centered around the Murphy contribution.

“The interview was about information in a Times article earlier this year,” said Margolin, referring to a Jan. 20 story on laundered campaign contributions. State law prohibits concealing the source of political donations.

In the article, The Times quoted Murphy as saying he was reimbursed by Moriarty for campaign donations he made at Moriarty’s request. The story also included details of a May 20, 1982, letter written to Moriarty on the stationery of then-Assemblyman Young, who guided fireworks legislation backed by Moriarty through the Assembly in 1981.

The letter requested that Moriarty make $18,500 in political contributions to six Democratic candidates who were seeking election or reelection to the Assembly. Beside Margolin, the letter asked Moriarty to give contributions to Assembly members Maxine Waters of Los Angeles, $1,000; Charles Calderon, Alhambra, $2,500; Steve Peace, Chula Vista, $2,000; Rusty Areias, Los Banos, $3,000, and unsuccessful Assembly candidate Richard Polanco, Los Angeles, $2,500.

According to the letter, the names of the six lawmakers were provided by Assembly Speaker Willie Brown (D-San Francisco).

All six on the list previously have denied knowing that the money was laundered. Except for Margolin, none of them could be reached for comment Thursday.

Note Destroyed

A note was sent to Waters during a committee hearing asking if she had been contacted or talked to investigators about the contributions. Waters read the note, tore it up and threw the pieces on the floor.

In The Times story, Brown denied any knowledge of the letter, and Young’s attorney would only say that the signature on the letter was not Young’s. Neither Brown nor Young could be reached for comment Thursday.