Police Will Assist Probe of Bradley Financial Links

Police detectives have been asked to help the city attorney investigate possible conflict of interest involving Mayor Tom Bradley’s links to two financial institutions, a Los Angeles Police Department spokesman said Wednesday.

Bradley, appearing at a news conference to announce the formation of a city Commission on Disability, said he welcomed the probe, considered the police involvement “routine” and has set up an Ethics Commission to review ways of limiting conflict of interest by all city officials.

But the mayor also said he has discussed the case with two private law firms and has retained attorneys Dan Fogel and Mickey Kantor.

‘Fully Committed’

“I’m fully committed to do everything within my power to cooperate, to not only make this investigation a satisfactory one but to take the steps necessary to make changes that apply to all elected officials in the city, where the present Charter or ordinances do not adequately spell out limitations,” Bradley said.

Police Department spokesman Cmdr. William Booth said City Atty. James K. Hahn formally requested the department’s help in an April 11 letter to Police Chief Daryl F. Gates.

The city attorney “is conducting a preliminary inquiry into allegations of possible conflict of interest reported in the newspapers,” Booth said.

“He said he has limited investigative resources and needed assistance,” Booth added. “The chief has directed that this be done. He said we are obliged to offer the requested assistance by our Bunco-Forgery Division,” which is best equipped to handle “white-collar investigations.”

Routine Step

When city officials such as the city attorney or chief accounting officer “don’t have the resources to conduct these investigations, they routinely turn to the Police Department,” Bradley said.

“Let me remind you that I encouraged the city attorney to conduct a full investigation (and) offered my cooperation and support,” the mayor said.

“I took the action of returning the fees that had been paid to me by Far East Bank, (and) I resigned not only from that position but from Valley Federal Savings as well,” the mayor said.

The investigation was launched after disclosures in late March about Bradley’s ties to Far East National Bank and was expanded after revelations about his position on Valley Federal Savings and Loan Assn.’s board of directors.

The mayor received $18,000 from Far East in 1988 and at least $71,800 from Valley Federal over the last 11 years.

The city attorney is trying to determine whether Bradley used his position as mayor to provide assistance to either of the two lending institutions, both of which were doing business with the city at the time of the payments to Bradley.

A finding of conflict of interest could result in misdemeanor criminal charges being filed.

Forming Committee

On March 24, the mayor announced he was returning the $18,000 to Far East, and on April 12, he said he was resigning from Valley Federal’s board and forming an ethics committee.

Investigators were also looking into Bradley’s ties to the Task Force for Africa/Los Angeles Relations, which has received $400,000 in city funds since 1985. Much of the funding went to pay the salary of Executive Director Juanita St. John, a longtime Bradley associate, who has been partners with the mayor in a Riverside County land deal since 1980.

In the wake of the allegations, Bradley announced last week that he was withdrawing a 1989-90 budget request to provide the task force with $121,000 in city money.