Alatorre Bank Data Under Investigation

City investigators alleged last week in an affidavit seeking a search warrant that there is “probable cause to believe” that Los Angeles City Councilman Richard Alatorre illegally used $110,876 in campaign funds to win election last year, according to court files made public Friday.

The search warrant, issued by Municipal Judge David Horwitz, was used to obtain bank records that Alatorre has refused to provide the city clerk’s and city attorney’s offices, which are investigating possible violations of the city’s new campaign contribution limit law.

Alatorre declined through an aide to comment Friday, but his attorney said the matter will be swiftly resolved and the councilman vindicated.

‘Will Uncover Nothing’

“There is nothing they will ever uncover to show that Richard Alatorre committed any crime,” attorney Johnnie L. Cochran Jr. said.

The four-month-old investigation centers on a tangled legal issue: Whether Alatorre, a former state assemblyman who represented the heavily Latino Eastside, knowingly used large amounts of money controlled by his state campaign committee, Citizens for Alatorre, to help win election to the City Council from the 14th District.

Los Angeles voters in 1985 passed an ordinance that placed a $500 limit on campaign contributions to local council races. The special election in the 14th District last December was the first to fall under the law, which critics argue does not clearly deal with the case of a state official, such as Alatorre, who wants to run for a city post.

Don’t Deny Funds Spent

Alatorre and his attorney do not dispute that Citizens for Alatorre spent large sums to promote his political fortunes during the months Alatorre was preparing to run for the City Council. However, they said the money was spent before he officially declared his candidacy and so did not violate the city’s new law.

Last February, when the investigation began, Alatorre explained that he had followed “confusing” advice from the city attorney’s office about how to legally separate the activity by his state and local political funds.

However, City Atty. James K. Hahn said in March that he doubted any attorney on his staff actually advised Alatorre he could spend money as he did.

Hahn tried to have the entire controversy shifted out of City Hall, where he must represent all the council members at the same time he investigates Alatorre, and into the hands of Los Angeles Dist. Atty. Ira Reiner. Reiner refused the case, however, leaving it in Hahn’s lap.

The search warrant made public Friday was used to obtain bank statements for Citizens for Alatorre. Alatorre had voluntarily provided investigators with records for his city campaign committees, according to the court files, but he had declined the request for documents from Citizens for Alatorre, after arguing that the records were outside the city’s jurisdiction.

Evidence Alleged

In the material submitted to support the search warrant, city auditor Isauro Espinosa alleged that there was evidence to believe that $110,876 from Citizens for Alatorre was spent on mailings, campaign signs, a videotape and campaign consultants for the 14th District council race, which saw Alatorre elected to replace Arthur K. Snyder, who resigned.

All political spending must be reported on public disclosure forms. In most cases, the same Alatorre transactions were listed on public disclosure forms for both the state-oriented Citizens for Alatorre and the local finance committee. The dual listing indicated that money from the state committee, Citizens for Alatorre, was used to benefit Alatorre in the council race, Espinosa alleged.

Could Force Removal

Violation of the city ordinance is a misdemeanor and conviction could force an incumbent’s removal from office.

Mike Qualls, a spokesman for Hahn, said Friday that the investigation is still in the hands of City Clerk Elias Martinez, who has auditors checking all the transactions by Alatorre’s committees. A final report will be sent to Hahn for his action, Qualls said, although when is unknown.

However, Martinez said Friday that his office has completed the bulk of its work and he forwarded a report to Hahn’s office on May 15.