FBI’s Capitol Probe Draws 1st Guilty Plea

In the first indictment stemming from the FBI’s three-year sting investigation at the state Capitol, a former top assistant to the Yolo County sheriff pleaded guilty Thursday to extorting money from local developers in exchange for special treatment by deputies.

Shortly after being indicted by a federal grand jury, former Assistant Sheriff Wendell Luttrull appeared in a U.S. District Court and admitted extorting $3,650 in contributions for the 1986 reelection campaign of his former boss, Sheriff Rod Graham.

Luttrull pleaded guilty as part of a plea-bargaining agreement in which he pledged to cooperate with investigators in exchange for a lighter sentence.

Sheriff Implicated

In a statement submitted to the court, Luttrull implicated the sheriff in the extortion--saying that Graham “ordered” him to collect the money and that the two agreed to conceal its source. Graham, who in earlier news interviews denied any wrongdoing in the matter, would not comment Thursday on Luttrull’s allegations.

Federal officials said privately that this was the first of several indictments that they expect to result from the FBI’s undercover investigation of political corruption. U.S. Atty. David F. Levi on Thursday refused to discuss the possibility of further indictments.

Luttrull’s guilty plea provides the first glimpse of the kind of evidence that federal agents have been able to gather in their lengthy operation.

The investigation of the two Yolo County law enforcement officials was an offshoot of the Capitol probe and apparently came about by chance.

Graham and Luttrull, at the time the top law officers in the rural county across the Sacramento River from the Capitol, approached a West Sacramento developer, Marvin Levin, for a sizable campaign contribution. The two did not know that he was a key undercover informant assisting the FBI in its investigation of political corruption in the Legislature.

Levin is a partner in Lighthouse Marina, a $600-million marina and condominium project planned for a basically undeveloped area along the river. To secure approval for the project, Levin had earlier asked Luttrull for crime statistics for the area. According to Luttrull’s court statement, “the more severe the crime problem that could be shown, the more community and government support that would be generated to support the development.”

According to Luttrull’s statement, Graham told him to provide whatever statistics Lighthouse wanted and “make it look bad.”

In preparing a map demonstrating the extent of crimes in the area, Luttrull said he took steps “to falsely inflate” crime along the waterfront.

After supplying the fraudulent data, Luttrull told the developers that “a great of deal of money was needed to ensure that Sheriff Graham was reelected.”

In addition, Luttrull said: “I suggested to them that in exchange for campaign contributions, the services of the sheriff’s office would be at their disposal. Furthermore, I confirmed our willingness to manufacture crime reports if necessary and advise them that police protection would be provided for the project once construction began. . . . I offered to launder the contribution through third parties.”

Levin, obtaining money from the FBI, gave Luttrull $2,000 in cash--20 $100 bills in an envelope--in May, 1986. Luttrull, in the court statement, said he deposited the money in a raffle that the sheriff held as a political fund-raiser “in order to avoid campaign reporting requirements.”

“By taking such action, we were able to conceal the fact that the developers had provided the campaign with $2,000 in cash,” the statement continued.

Later that month, Levin gave a check for $1,650 to Luttrull at a meeting also attended by Graham. The check was drawn on the account of Gulf Shrimp Fisheries, a phony company set up by the FBI as part of its Capitol sting.

Luttrull said he cashed the check and gave the money to Graham, who gave him back about $400 for his “expenses.”

“Following the receipt of money on each occasion, I had conversations with Sheriff Graham in which we agreed that the moneys would not be reported as required” by state law.

Luttrull agreed in court Thursday to cooperate fully with authorities in exchange for a lighter sentence--no more than six months in a half-way house, compared to a maximum sentence of 20 years in prison and a $250,000 fine.

Under federal law, it is a crime for a public official to demand campaign contributions or other fees in return for some official action, according to Levi, who heads the sting investigation.

The probe of political corruption came to light in August when FBI agents staged a late-night raid in the Capitol and searched the offices of four legislators: then-Assembly Republican Leader Pat Nolan of Glendale, Assemblyman Frank Hill (R-Whittier), Assemblywoman Gwen Moore (D-Los Angeles) and Sen. Joseph B. Montoya (D-Whittier). Also among the targets of the continuing investigation are former state Sen. Paul Carpenter (D-Cypress), now a member of the State Board of Equalization, and several legislative aides.

During the sting, FBI agents posing as businessmen set up five phony companies and funneled more than $74,000 to elected officials and aides as they pushed for passage of legislation supposedly aimed at helping their shrimp importing business.

Undercover agents tape-recorded or videotaped conversations with at least 13 targets of the probe, including Luttrull and Graham. Levin, acting as an informant, helped record conversations with the two law enforcement officials as well as others.

Luttrull, 48, resigned from his post Aug. 1, citing personal reasons. He joined the Yolo County Sheriff’s Department as a deputy in 1975 and had served as assistant sheriff starting October, 1986, according to Graham’s office.

In September, after being questioned by a Times reporter about the Gulf Shrimp money, Luttrull went to the FBI and told his version of events, according to sources familiar with the probe.