New Probe Checks Gifts to Bradley’s Campaign Funds

The city attorney has launched an inquiry into Mayor Tom Bradley’s campaign finances, focusing on contributions that may have been made by individuals or companies in violation of campaign limits.

Officials of the city attorneys’ office said the inquiry is separate from the continuing investigation of the mayor’s personal finances, but is being conducted by the same team of attorneys who specialize in political corruption and campaign finance investigations.

A spokesman for City Atty. James K. Hahn on Saturday said only, “we have asked the city clerk to provide us with some information on the recently completed campaign.”

Sources in the department, who asked not to be named, said the inquiry was begun last week and is focusing on so-called “multiple contributions,” or campaign funds funneled through individuals or companies in an attempt to mask the real source and circumvent strict campaign contribution limits.

Such inquiries can be complicated and lengthy.

Bradley raised $1,882,000 in 1,888 separate contributions for his latest mayoral campaign during a 15-month period beginning in January, 1988, and ending March 25, 1989.

Multiple Contributions

A Times study of Bradley’s campaign finance data indicates dozens of instances in which there were multiple contributions from employees of the same firm, although the transactions were not necessarily illegal and, on their face at least, do not violate contribution limits.

For instance, 14 law firms, more than a dozen real estate firms and a dozen financial firms all reported multiple contributions from employees, the businesses themselves or the companies’ political action committees. One law firm listed contributions from 16 individuals.

Election laws make it illegal for any one contributor to give more than $1,000 to a mayoral candidate in any election cycle, including money given through relatives, employees or others with the purpose of going to the candidate. A company can give as much as $2,500 and a political action committee may contribute up to $5,000.

A person who willfully or knowingly violates any provisions of the law is guilty of a misdemeanor. The law calls for the candidate’s removal from office if the court finds that the violation had a “material effect” on the outcome of the election.

Bill Chandler, a spokesman for Bradley, said, “we are unaware of any irregularities in the contributions received.” The mayor’s office was also unaware of the new investigation until press inquiries were made, Chandler said.

Bradley already is under investigation by the city attorney for alleged conflicts of interest in accepting paid positions with Far East National Bank and Valley Federal Savings & Loan Assn. while both institutions had business before the city. The city attorney is also examining Bradley’s relationship with the Task Force for Africa/Los Angeles. The mayor helped steer about $400,000 in city grants to the group while he maintained a lucrative real estate partnership with the group’s director, Juanita St. John.

In addition, the city controller is auditing Far East’s multimillion-dollar business dealings with the city and a City Council committee is conducting its own review of Bradley’s financial ties.

The investigation of Bradley’s campaign finances is one of several investigations into campaign irregularities now under way by the city attorney. The city attorney is investigating similar allegations of multiple contributions lodged against the campaigns of City Council members Michael Woo and Joy Picus.

Officials of the city attorney’s office said such inquiries are common. “We do them all the time,” said one official who asked not to be named.

But while the investigations are common, prosecutions are rare. “It’s hard to prove” that one individual funneled funds through another to a campaign, unless one of the persons is willing to admit to it, the official said.

“What we need is someone to testify that they were told to contribute and put it on their expense account,” said the source who is familiar with these cases.

Times researcher Cecilia Rasmussen contributed to this story.