Cab Firm’s New Pact Postponed by Probe : Transportation: Airport commissioners delay decision. Company that manages taxi services is under investigation for possible misuse of funds.

Airport commissioners Wednesday postponed action on a new management pact covering Los Angeles International Airport taxicab services after it was disclosed the firm involved is the focus of a police investigation for possible misuse of funds.

The probe involves Taxicab Management Inc., a company designated by cab company managers to control the movement of taxis through the heavily congested airport. Airport staff had proposed last month that the firm, whose current contract is expiring, be given a new five-year agreement.

But the matter was deferred after cab drivers complained that the firm was under investigation and no competitive bids had been sought.

Capt. Doug Watson of the LAPD’s bunco-forgery division confirmed that his detectives “have an ongoing investigation” of taxicab management at the airport and are working with the Los Angeles County district attorney’s office. The probe involves possible “misappropriation of public funds,” Watson said, declining to elaborate.

Airport officials, taxicab company officials who have been interviewed by police and other sources said the investigation centers on how Taxicab Management and its president, Behzad Bitaraf, have handled about $1.5 million in special surcharges it collects from taxi drivers. The drivers collect a $2.50 fee from riders picked up at LAX and pay it to Taxicab Management every time they re-enter the airport through a holding lot operated by the firm.

Under the firm’s existing agreement, Bitaraf’s company retains $2 of the fee to operate the holding lot and provide cab stand monitors near the airline terminals, as well as other services. The remaining 50 cents goes to the airport.

Bitaraf left the commission meeting, declining to comment. His attorney, Steven M. Neimand, said he does not know what the focus of the investigation is, but he added, “All the money has been accounted for.” He also cited an airport department staff report that praised Taxicab Management’s performance.

Among the items of interest to police, sources said, are a car wash business that Bitaraf operated at the LAX taxicab holding lot. Funds from the car wash were apparently mingled with the taxi dispatching service.

Also, Taxicab Management Inc. has been operating as a private California corporation, rather than a nonprofit company, as envisioned in the operating agreement with the airport. His attorney acknowledged Bitaraf has not been running a nonprofit corporation, but he insisted Bitaraf is not making a profit.

LAPD Detective Greg Schwien said there is uncertainty as to what the city contract requires. The investigation, he added, will determine whether funds were used illegally or just mismanaged.

Assistant City Atty. Bret Lobner, legal adviser to the airport department, insisted the airport has received all the funds to which it is entitled. Airport executive Joe Clair said the city’s share amounts to about $310,000 per year, based on the current estimate of about 1,700 cabs entering the airport each day.

Several cab company owners strongly defended Bitaraf after the meeting. They said they have been given access to Bitaraf’s books and believe any allegations of misconduct are unfounded.

David Shapiro, one of the taxi drivers who objected to renewing Taxicab Management’s agreement, said drivers want to know more about where the fees are going.

The commission will discuss the matter again at next month’s meeting.