City Attorney Launches Probe of Bradley’s Ties to Two Financial Firms

City Atty. James K. Hahn said Friday that his office--without waiting for City Council approval--has begun investigating Mayor Tom Bradley’s personal and political ties with Los Angeles financial institutions.

In his first public comment after a week of controversy over his finances, Bradley told a press conference Friday that he welcomed the inquiry. The mayor said he was “angry” and “outraged” at “cheap political sideshows staged by desperate candidates during waning days of the mayoral campaign.

“I’m offended by this kind of effort to impugn my character and question my integrity,” he said.

The mayor, who is expected to easily win an unprecedented fifth term on April 11, is opposed by several candidates, including Councilman Nate Holden. Holden is among several council members who have criticized Bradley’s relationship with two banking firms.

On Wednesday, Holden asked the council to call for a city attorney’s investigation. A vote on Holden’s motion is scheduled next week.

Hahn said he directed his staff earlier this week to review applicable state and city laws to determine whether Bradley had violated conflict-of-interest regulations when he accepted consulting fees from Far East National Bank and director fees from Valley Federal Savings & Loan Assn. Far East does business with the city, and a Valley Federal subsidiary has received favorable land-use decisions from the City Council and mayor.

“I do believe that as public officials we have a responsibility to the public to inspire their confidence,” Hahn said in an interview. “There have been some questions raised here. I think these are questions that need to be answered.”

Trade Missions

Bradley said Friday that, in exchange for $18,000 in consulting fees, he gave Far East advice on foreign trade missions on no more than six occasions last year.

“When I was asked if I would serve in the advisory capacity so they could come to me for reaction and sort of pick my brains, I agreed to do so,” Bradley said.

Asked if he wondered why he was getting paid so much to do so little work, Bradley responded, “When the relationship began, there was no way either the bank or I would know how often they would call me for advice.”

The mayor said he resigned as an adviser to Far East in December, when it became apparent his services were not being utilized.

Bradley returned the $18,000 last week after he learned that Far East held deposits of about $2 million of city funds. He said he gave back the money voluntarily to avoid the appearance of a conflict.

The Times learned Friday that a top Far East official has another tie to the city.

Received Contracts

Steve Bubalo, the bank’s vice chairman, owns a Monrovia-based firm, Steve Bubalo Construction, which has won at least 10 separate contracts, totaling $4.4 million, with the Department of Public Works during the last eight years. Bubalo could not be reached for comment on Friday.

The Times reported Friday that Bradley, while receiving director fees from Valley Federal, approved land-use ordinances that permitted the thrift’s development arm to build two housing tracts in Los Angeles. Bradley said he did not know that he had approved ordinances on behalf of the Valley Federal subsidiary until he was informed by a reporter.

Bradley currently receives $18,000 a year to serve as a director emeritus for Valley Federal. Before March, he was paid $24,000 a year. Bradley has served on the board since 1978.

City Council President John Ferraro said he strongly objected to Bradley signing the zoning ordinances in which Valley Federal had an interest. Valley Federal also has contested a $2.7-million city tax bill. The matter has not come before Bradley.

“Why he went on the board of Valley Fed when it is so involved with the city doesn’t make any sense to me,” Ferraro said in an interview Friday.

Ferraro contended Bradley could have easily disqualified himself from acting on the matters and turned the matter over to the president of the council. He could have done that, Ferraro said, by leaving the city, at which time the council president becomes acting mayor.

Backs Review

Councilman Zev Yaroslavsky on Friday joined other officials asking that the matter be reviewed.

“We need to know a whole lot more of the facts,” Yaroslavsky said. “There’s a problem when any city employee entwines or mixes public duty and personal business. That’s what the code of ethics addresses.”

At his press conference, Bradley lashed out at reporters for disclosing his financial interests and actions.

“You have fed into this, raising questions that clearly there is an answer for and clearly you are building it to proportions unjustified by the source from which they come,” Bradley told reporters.

Times City-County Bureau Chief Bill Boyarsky contributed to this article.