Bradley’s Role as Paid Adviser Shocks Some City Politicians

Mayor Tom Bradley’s previously unknown role as a paid adviser to a bank doing business with the city has come as a disappointing surprise to some of his political colleagues.

“At best, this is the consequence of carelessness,” said Los Angeles City Councilman Marvin Braude, who is one of Bradley’s strongest supporters on the municipal legislative body. “At worst, it is a matter for the city attorney.”

Braude and others commented in interviews Sunday as the City Council prepared to hold a Governmental Operations Committee hearing Wednesday on disclosures that Bradley and his staff interceded with city agencies on behalf of Far East National Bank while Bradley was a paid adviser to the bank.

Expert Legal Team

The Times learned that Bradley’s legal team in the investigation includes a specialist in conflict-of-interest laws, attorney Ronald B. Turovsky of the firm of Manatt, Phelps, Rothenberg & Phillips. Also on the team are Mickey Kantor of Manatt, Phelps, an expert political strategist, and Daniel Fogel, a civil and trial attorney with the firm of Fogel, Feldman, Ostrov, Ringler & Klevens.

Last year, Far East National Bank paid Bradley $18,000 to serve on its board of advisers, and he was the only one of 46 advisory board members to receive payment. Asked why the bank paid Bradley, bank President Henry Hwang said it was because the mayor was helpful in bringing foreign trade to the institution. “You generally have to pay people for things . . . for, you know, for services rendered in the future, whatever,” Hwang said.

The committee will hear a report from City Atty. James K. Hahn, who is in charge of an investigation of Bradley’s affairs. Hahn will also investigate Bradley’s tenure as a board member of Valley Federal Savings & Loan Assn., for which he was paid up to $24,000 a year. The thrift had zoning matters before the city during the years that Bradley was on its board.

The release of documents detailing the role of Bradley and his aides in contacting city agencies on behalf of Far East has persuaded Braude and others that Bradley faces serious political trouble when the committee convenes Wednesday.

Braude said he was shocked by the news. “The mayor is not unethical, venal or corrupt,” he said. “Quite the contrary. The mayor is quite honorable.”

‘Errors of Oversight’

But, he said, “there is a strong tendency (among public officials) to neglect their personal affairs with the press of official activities. Errors of oversight are bound to occur and that has caught up with the mayor. But that is no excuse.”

Councilwoman Joan Milke Flores said: “I believe what I’ve read, but I want to hear what the mayor says about it.

“It is really too bad that this happened,” Flores said. “I don’t always agree with the mayor but I have never had the least doubt that he was a man of integrity. I really believe the mayor is an honest man.”

“I just don’t know what led him to do these things. I don’t know whether he got bad advice or just got greedy. But it is so unlike the mayor.”

City Council President John Ferraro, who once ran against Bradley, said “we all (city elected officials) make phone calls for people, but we are not on their payroll. I certainly would not call if I had a financial interest or served on a board.”

Another old Bradley political associate, and friend, who declined to be identified, said: “I’ve never questioned his integrity. I can’t conceive of him participating in any kind of illegal activity. But one can never be too prudent and sometimes one doesn’t think enough and gets involved in things they shouldn’t get involved in.

“It looks bad, the public reaction looks bad,” the associate said.

Ferraro, Braude and Flores will be key City Council players as the Bradley investigation unfolds, and their statements indicate that Bradley will undergo scrutiny from a council that has shown increasing signs of being willing to oppose the mayor. That has been especially true since Bradley’s surprisingly narrow reelection victory last month.

As council president, the veteran Ferraro will take a prominent role in shaping the council’s course, advising the chairman of the Governmental Operations Committee, Michael Woo, who is just finishing his first term. Ferraro has had an up-and-down relationship with Bradley, running against him in 1985 in a vitriolic campaign but traveling with him last year to the Seoul Olympics.

Braude is another veteran. While he was angry with the mayor’s support of proposed oil drilling in the Pacific Palisades in Braude’s district, the councilman has always had a high regard for Bradley and has given him key support in tough political situations. Braude is respected by council colleagues and is expected to have a behind-the-scenes role in shaping events.

Flores has also won considerable respect on the council, first as an aide to the late Councilman John Gibson, then as his successor when he retired.

Moreover, Flores and Braude supported Ferraro for council president. They are all part of an informal leadership cadre that comes together on major occasions to chart a course for the council.

Stronger Role Considered

Some council members had discussed the council taking a stronger role in the investigation by hiring a special counsel and issuing subpoenas.

Ferraro did not rule that out, saying: “If after the committee meets on Wednesday, and they feel they need expertise, maybe we could get an adviser to the committee. But I think we ought to wait until the hearing on Wednesday.”