Bradley Puts Bulk of Assets in Blind Trust, Sells Off Most Others

Amid a series of investigations of his personal finances, Mayor Tom Bradley last year placed the bulk of his holdings in a blind trust and sold off most others, according to a financial interest statement released Wednesday.

Bradley announced last April that he planned to eliminate the appearance of potential conflicts of interest by putting his assets in the blind trust. The newly released records indicate that the trust was created last September.

The records show that Bradley did retain personal control over his investment in a Riverside real estate partnership with Juanita St. John, who has been charged with theft of funds from a city-financed Africa trade task force.

However, Bradley spokesman Bill Chandler said Wednesday that Bradley sold his share of the Riverside investment in January after the close of the reporting period.

Bradley reported that he received less than $10,000 as a board member of Valley Federal Savings & Loan--one of two financial institutions that had dealings with the city and employed Bradley in recent years.

Chandler refused to answer any other questions about the mayor’s economic interest statement, which his office says was mailed Monday night. Elected officials had to file the statements with the city clerk’s office by Monday.

Last December, Bradley agreed to pay $40,000 out of his own pocket to settle a civil lawsuit brought by City Atty. James K. Hahn, who alleged that Bradley had made numerous errors and omissions on his financial disclosure statements in recent years.

A federal investigation is continuing into Bradley’s personal finances for possible violations of insider trading and other securities laws.

The new reports show Bradley made additional investments through a firm associated with former city Harbor Commissioner Ira Distenfield, who abruptly resigned last May amid news media inquiries into his efforts to obtain a city contract for a firm that employed him.

Bradley’s relationship with Distenfield has been of interest to federal investigators, who last year subpoenaed Bradley records from Bateman Eichler, Hill Richards, where Distenfield served as a broker.

The new reports show that Bradley had an investment account at Integrated Resources, a firm where Distenfield worked. Jules Radcliff, Distenfield’s attorney, acknowledged Wednesday that Distenfield handled some investments for the mayor through Integrated, including more than $100,000 Bradley invested in American Insured Mortgage Investors, but said Distenfield is no longer handling any of the mayor’s accounts.

Bradley also invested more than $100,000 early last year in BLSH Inc., a firm that lists Distenfield as president in state corporation records. Radcliff said he was unaware of Distenfield’s relationship to the firm. But Radcliff said he is aware that BLSH invests in potential lawsuit settlements.

Radcliff said federal agents have never questioned Distenfield.

Bradley’s disclosure statement also shows that he received $17,500 in gifts during 1989, including thousands of dollars worth of season tickets to sporting events.

Some of the gifts could be prohibited under the ethics reform package backed by Bradley and approved by the City Council for placement on the June ballot.

The measure outlaws gifts from people and companies that do business with the city, but specific guidelines will be drawn up by a new Ethics Commission if the voters approve the ballot measure.

Whether the Los Angeles Dodgers, who gave Bradley season tickets worth $3,200, or the theater chains will be classified as enterprises that do business with the city is unclear, said Pat Michell, an aide to Councilman Michael Woo, who helped draft the ethics reforms.

Statements filed by the city’s 15 council members show similar gifts of tickets from sports teams, theaters and Disneyland.

Councilman Joel Wachs reported receiving about $15,000 in gifts, including a painting from artist Joe Andoe worth $1,500 and a photograph from artist Richard Prince worth $2,500.

During the debate on the ethics package, Wachs was a vocal opponent of restrictions on such gifts.