FBI Raids State Capitol Offices : Several Southland Lawmakers Part of Bank Bill Probe

Federal investigators with warrants searched the state Capitol offices of half a dozen members and staff members of the Legislature, the FBI and a state senator said today, apparently as part of a corruption inquiry.

Sen. Joseph B. Montoya of Whittier, the Democratic chairman of the Senate Business and Professions Committee, and Assemblyman Pat Nolan of Glendale, the Republican floor leader of the Assembly, confirmed that their offices were among those searched by the FBI. Both denied involvement in any improper activities.

(UPI reported that Tony Beard, the Senate sergeant-at-arms, said he was summoned to the Capitol at 9:30 p.m. after being told that the FBI had obtained a search warrant for Montoya’s office. He opened Montoya’s office and then went to his own office until 1 a.m., Beard said.

(He said he believed that agents talked to Montoya and to state Sen. Alan Robbins (D-Van Nuys), chairman of the Senate Insurance, Claims and Corporations Committee. Robbins said later that he was not a subject of the probe but had been asked for assistance by the FBI.)

Agents Keep Mum

The FBI refused to reveal the names of the lawmakers or even the subject of the investigation, but a Capitol source, who declined to be identified, said all the objects of the search warrants were involved in the passage of a bill involving investment banking regulations.

Beard said the warrants specified documents related to a vetoed bill involving investment banking law, AB 4203, by Assemblywoman Gwen Moore (D-Los Angeles). Moore could not be reached for comment.

At least one office was searched for more than three hours, sources said.

“What I can tell you is that anything I have received in the way of contributions or honoraria is always done as prescribed by law,” said Montoya, who confirmed that federal agents searched his office.

Inquiries About Moore

Montoya also confirmed that agents were seeking information on Moore’s bill.

Montoya said, “I guess they wanted to check things out.” He said the agents were seeking information about two measures that passed through Montoya’s committee.

Nolan said in a written statement: “My office and the offices of several members from both parties were searched last night by the FBI. It is not clear to me yet what the object of the investigation is, but I am confident that when the investigation is completed, my office will be completely cleared.”

Ongoing Probe

Terry Knowles, special agent in charge of the Sacramento FBI office, said the FBI “executed warrants Wednesday on the offices of six legislators and legislative assistants. The searches were in connection with an ongoing investigation.”

A Capitol employee said a team of about 30 federal investigators from the FBI and the U.S. attorney’s office served search warrants on the offices of Montoya and two members of the Assembly--all from Southern California--between 9 p.m. and 9:30 p.m. Wednesday.