IRS Joins Robbins Inquiry, Interviews Contributors

The federal investigation of Sen. Alan Robbins (D-Tarzana) has progressed to a new phase as Internal Revenue Service agents have begun questioning Robbins’ campaign contributors.

Larry Boehm, acting chief of the IRS criminal division in Sacramento, confirmed Wednesday that a letter has been sent to Robbins’ contributors asking whether the lawmaker or his staff sought “money or other favors in exchange for official action.”

In response, Robbins repeated earlier denials of any wrongdoing. Robbins maintained that the IRS is “not going to find anything because it doesn’t exist. I have nothing to hide.” He acknowledged that he has turned over volumes of material to federal agents.

The Times reported in June that Robbins was a subject of a federal grand jury investigation into political corruption at the state Capitol and that the FBI and IRS were gathering records to determine whether a criminal case could be brought against the veteran San Fernando Valley lawmaker.

In recent weeks, testimony from two witnesses at the federal political corruption trial of Sen. Joseph B. Montoya (D-Whittier) has implicated Robbins. Montoya, who is standing trial on 12 counts of extortion, racketeering and corruption, is the only lawmaker indicted in the federal investigation.

At Montoya’s trial, a capital lobbyist last week testified that in 1985 he was told by a third party that Robbins demanded a campaign contribution to push a bill on behalf of osteopathic physicians through the Senate Insurance, Claims and Corporations Committee, which he chairs.

Last month, star witness John Shahabian, a Senate aide who became an FBI informant, testified that advice from Robbins led him to offer a payoff of $3,000 to Montoya to win his help in passing a measure on behalf of a dummy FBI company.

In the latest wrinkle in the investigation, Robbins’ contributors began receiving letters from the IRS late last month, the senator said. Boehm refused to disclose how many letters have been mailed.

However, he acknowledged that the one-page letter from IRS Special Agent Howard E. Moline tells contributors that the IRS “is investigating the activities of California state Sen. Alan Robbins.” He said it was directed to people who “had a financial transaction with Sen. Robbins or one of his campaign committees.”

Boehm said the letter tells contributors: “Official action could be voting on a bill, introducing legislation or meeting with officials of state agencies or local governments.”

Moline says he also is interested in “any instances wherein you were denied access to the senator unless you made a significant campaign contribution.”

U.S. Atty. David F. Levi, who heads the corruption investigation, declined to comment on the IRS request. However, he acknowledged that the IRS is often called in on cases involving complex financial transactions because of the agency’s expertise.

Although the government has not prosecuted Montoya on tax charges, IRS agent Moline testified at Montoya’s trial that he reviewed 55,000 pages of Montoya’s financial records.

Robbins said that at least two contributors who received the IRS letter complained to him about the government request. “I tend to be more philosophical,” Robbins said.

In addition to copies of more than 50 of his bills subpoenaed by the investigators last year, Robbins said, he has provided boxes of message slips, copies of canceled checks and deposit slips to investigators.

“I’ve provided them with enough material that they had to send a guy over with a dolly to get it,” Robbins said.