FPPC Clears Vicencia in Failure to Report Income

The state’s Fair Political Practices Commission has cleared Assembly Speaker Pro Tem Frank Vicencia (D-Bellflower) of any intentional wrongdoing in failing to report income from eight companies, including a poker parlor controlled by admitted political corruption figure W. Patrick Moriarty and a Hollywood Park concessionaire.

In a confidential letter to Vicencia dated Oct. 18, FPPC Chief of Enforcement Roger Brown said the veteran lawmaker was innocent of any liability because he misunderstood the law and was poorly advised by staff members.

Brown said Vicencia, 54, should have publicly reported income that he received for three years beginning in 1982 from the eight clients of his insurance business, Gene List Insurance Services Inc.

But, Brown said, “we conclude that your failure to disclose was due to negligence resulting from your reliance on mistaken advice provided by a member of your staff who misinterpreted the appropriate disclosure provision of the (law).

“Furthermore, we find no evidence of any violation of the conflict-of-interest provisions of the (law), or any evidence to suggest your failure to disclose properly was related to or motivated by any conflict of interest,” Brown’s letter said.

Vicencia said in a press release: “I am relieved that this episode is over and gratified at the result.

“I was fortunate my error (in not reporting the insurance clients) was investigated by an agency interested in the truth of the matter and not its appearance,” his statement said.

Special-Interest Bills

Vicencia, a member of the Assembly since 1974, was chairman of the Assembly Governmental Organization Committee, which handles special-interest legislation such as liquor and poker parlor bills, for six years before being elected Speaker in December, 1982.

Last February, after disclosures that Vicencia’s insurance agency had received business from Moriarty’s poker parlor, Vicencia amended his required financial disclosure statements to show that he had personally received $10,000 or more in income from each of eight firms that did business with the insurance agency.

Among the clients listed by Vicencia were the California Commerce Club, the poker parlor operated by Moriarty. Vicencia cast crucial votes in favor of a Moriarty-backed fireworks bill when it was before Vicencia’s committee in 1981.

About a year later, while the bill still was before the Legislature, Vicencia, Moriarty and two of their aides discussed giving Vicencia’s insurance firm the card club insurance, Vicencia and the aides told The Times. Vicencia’s company subsequently received a $40,000 no-bid contract from the club for part of its insurance.

Food Concession

Another insurance client listed by Vicencia was Epicurean Inc., which handles the food concessions at Hollywood Park. Vicencia’s firm provided insurance for Epicurean in 1983 and 1984.

Neil Papiano, owner of Epicurean, also is the lawyer for Hollywood Park. Bills affecting the horse racing industry go through the Assembly Governmental Organization Committee.

The other six clients that Vicencia belatedly disclosed were California Cold Storage, South Bay Beer Distributors, General Pipe and Supply, Roger’s Cable Systems, Coast Grain Co. and Universal Cast Iron.

Moriarty, the now-bankrupt fireworks manufacturer who has pleaded guilty to seven counts of mail fraud relating to bribery of public officials and making illegal campaign contributions, is scheduled to be sentenced Nov. 4 in U.S. District Court.

Confidential Letter

In another development, a confidential letter submitted to U.S. District Judge Terry Hatter last week at a hearing on the sentencing of former Moriarty associate Richard Raymond Keith was made public Tuesday.

The letter, signed by Keith’s attorney, Brian O’Neill, was designed to mitigate Keith’s sentence on charges of income tax evasion, bankruptcy fraud and filing false statements to banks by showing the extent of his cooperation with federal and state investigators. Keith’s sentencing is scheduled for Nov. 25.

“In summary, Mr. Keith has provided information concerning illegal and corrupt political activity in the state of California, as well as information concerning the corrupt and unlawful conduct of certain bank officials,” the letter said.