CRA Put $500,000 in Bank That Had Bradley on Payroll

The Los Angeles City Community Redevelopment Agency had investments exceeding $500,000 with Far East National Bank last year while Mayor Tom Bradley served as a paid special adviser to the bank, The Times has learned.

The redevelopment agency is the second department to deposit city funds with Far East at a time when Bradley was paid $18,000 in fees to furnish the bank with his expertise on business and foreign trade matters.

Bradley announced last month that he had returned the money to Far East when he learned the city treasurer’s office had invested $1 million in the bank. When he returned the fees, the mayor said he had not known the city had any relationship with the bank when he agreed to serve on its advisory committee.

He would not comment on the CRA relationship with the bank, Deputy Mayor Mike Gage said Friday. Gage added that the mayor told him he was unaware of the redevelopment agency’s deposits with Far East.

The treasurer’s deposit was doubled to $2 million in March after Bradley--who said he got a call from Far East’s president--contacted the city treasurer and discussed the city’s investment policy. Bradley said he called to inquire about the investment, not to put pressure on the treasurer.

The city attorney is investigating Bradley’s relationship with two Los Angeles financial institutions that either conduct business with the city or have received favorable decisions from the City Council and mayor.

Director Emeritus of S&L;

Bradley, who receives a $97,654 annual salary as mayor, is paid $18,000 a year by Valley Federal Savings & Loan Assn. in Van Nuys as a director emeritus. He served as a paid director for Valley Fed from 1978 to 1987, received as much as $24,000 a year and has collected nearly $150,000 to represent the thrift’s interests, records show.

The Times has reported that on at least two occasions Bradley has signed land-use ordinances that paved the way for Valley Federal to develop property in the city. Bradley said he was unaware that the ordinances benefited Valley Federal until he was told by a reporter.

At about the same time Bradley became a special adviser to Far East, a close adviser to the mayor approached a nationwide recruiting firm in Los Angeles to inquire about available positions on corporate boards that would pay Bradley large director fees, according to one source in private industry.

The source, who asked not to be identified, said: “It was mentioned that the mayor was anxious to get on some boards. This really surprised me. I can’t fault the mayor for wanting to supplement his income, but I just don’t know of anybody who has done this.”

Bradley is the only big-city mayor who is paid to sit on a private board of directors, The Times found in a survey of the nation’s 12 largest cities.

One of Bradley’s key political fund-raisers, investment banker Ira Distenfield, said he has urged the mayor to join other boards of directors.

“I have whispered in the mayor’s ear over the last couple of years that I would certainly encourage him attempting to make some time available to lend what I think is his image and his love for business,” Distenfield said.

In the case of Valley Federal, Distenfield said, “I think (Bradley) is able to provide them with a pretty authoritative voice of how they can be a good corporate citizen and a good provider of housing to the community.”

Gage said Friday that the mayor was unaware of the investments in Far East made by the redevelopment agency and city treasurer because the president of Far East, Henry Hwang, told him the bank had no city investments.

Hwang refused to speak with a reporter in his office Friday. “The mayor has issued a statement,” Hwang’s secretary said. “We will have nothing more to say.”

The redevelopment agency’s involvement with Far East began in 1982 when the city deposited tax revenues from the Chinatown redevelopment project into two Asian banks, Cathay Bank and Far East, said Peirre E. Lorenger, the agency’s deputy administrator for finance and audits.

The redevelopment agency’s deposits in Far East gradually increased to $840,000 in 1986 and were at $525,000 a year ago when Bradley became the bank’s only paid special adviser, according to redevelopment officials.

Meanwhile, in an unrelated matter, the Fair Political Practices Commission said Friday it is investigating campaign donations Bradley received from contractors doing business with the Los Angeles County Transportation Commission. Bradley chaired the commission in 1987 and voted several times to award contracts to his contributors.

$17,000 Returned

Last fall, after inquiries by The Times, the mayor’s office acknowledged the votes were prohibited by state law and Bradley quickly returned $17,000 in contributions. Deputy Mayor Gage said the votes were inadvertent errors.

Since 1983, Bradley has received $13,500 in political contributions from Hwang, who told the newspaper Asianweek last month that he plans to run for state lieutenant governor on the Republican ticket.

Times staff writer Rich Connell also contributed to this article.