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Robbins Implicates 4 in Entering Guilty Plea : Corruption: He admits his office was a ‘racketeering enterprise.’ Those he names deny wrongdoing.

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TIMES STAFF WRITERS

Former state Sen. Alan Robbins confessed in federal court Monday to misusing his office for personal financial gain and implicated a coastal commissioner, an ex-senator, a major Capitol lobbyist and a Malibu-based public relations executive in his crimes.

Robbins, who secretly began cooperating with federal prosecutors last spring, formally pleaded guilty to racketeering and income tax evasion charges, admitting, “I operated my office as state senator as a racketeering enterprise.”

The guilty plea by the 48-year-old Van Nuys Democrat fulfilled an agreement that is expected to limit his sentence to five years in prison without parole, a $250,000 fine and restitution. He will remain free until his sentencing, which is scheduled for March 2.

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Speaking softly but with a rapid-fire delivery, Robbins read a detailed account of crimes he committed between 1985 and 1989.

The statement showed the extent to which the ex-lawmaker’s cooperation threatens public officials and others who have dealt closely with him. In describing his own wrongdoing, Robbins cited the roles played by others, including California Coastal Commissioner Mark L. Nathanson, former state Sen. Paul Carpenter, lobbyist Clayton R. Jackson and Jennifer Goddard, who owns the Goddard Co., a Malibu public relations firm. Through their attorneys, each has denied wrongdoing and in some cases challenged Robbins’ credibility.

Goddard, Robbins’ former legislative aide whose office was searched a year ago, has been granted immunity from prosecution and is cooperating with federal authorities, according to her attorney, Gordon A. Greenberg.

Robbins said he and Nathanson extorted almost $250,000 from San Diego hotel developer Jack Naiman. Sources familiar with the investigation have said it was Naiman’s coming forward after making the payments that led in part to the successful conclusion of the case against Robbins.

“Naiman did as I instructed him,” Robbins said, charting the course of the money as it was funneled through various conduits between 1987 and 1989. “I split this money with Nathanson.”

Robbins said he and Nathanson agreed to help Naiman, who was building a hotel in La Jolla and was hoping to defeat a rival project pending before the Coastal Commission.

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Nathanson has denied accepting money from Naiman or others in connection with a Coastal Commission action, Robert L. Shapiro, Nathanson’s attorney, said.

Shapiro added, “The statements made by Alan Robbins are obviously self-serving. They reflect an attempt by Alan Robbins to minimize his own jail sentence. When the full facts are known, the allegations will take on a different perspective.”

Robbins also implicated Carpenter, who was convicted last year of federal racketeering, extortion and conspiracy charges.

Robbins said he used Carpenter’s campaign committee in a complicated series of transactions that personally netted him $27,500.

According to Robbins’ statement, powerful insurance lobbyist Jackson obtained the $27,500 from his clients and donated the money to Carpenter’s campaign committee.

Jackson arranged for the money to be paid to Carpenter “at my direction and for my benefit,” said Robbins, who at the time chaired the Senate Insurance, Claims and Corporations Committee.

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Carpenter in turn paid the money to the Goddard Co. Goddard made the money available for his personal use, Robbins said.

Carpenter’s attorney, Merrick Scott Rayle, denied that the former state senator and State Board of Equalization member had acted improperly. He said any money Carpenter paid Goddard was for professional services.

“Sen. Robbins now apparently . . . is expressing that position because he feels it will help him mitigate what otherwise might be a more severe sentence,” Rayle said.

Sources familiar with the federal corruption probe say Robbins’ allegations could be used against Carpenter should he win his appeal and face a new trial.

Robbins’ statement also singled out Jackson, whose firm consistently ranks among the highest paid in Sacramento and whose office was searched last month by the FBI.

According to Robbins, Jackson arranged for sizable campaign contributions for Robbins and the Senate leadership in 1986 from G-TECH, the firm that has had $180 million in contracts from the California Lottery.

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In return for the contributions--which included $13,500 to Robbins’ own campaign committees--Robbins agreed to help defeat a bill that would have required lottery contractors to print tickets within California.

In the end, Robbins voted in favor of the bill in committee at Jackson’s request--an act that could have concealed Robbins’ work on behalf of the company--after the lobbyist “told me that he had arranged for the bill to die on the Senate floor,” Robbins said.

Craig Watson, vice president of marketing for Rhode Island-based G-TECH, said, “We have not engaged in any wrongdoing. To the best of my knowledge we have not uncovered anything that could indicate that we took a position on the bill.”

Also in 1986, Robbins said, he agreed to help another Jackson client, the Food and Fuel Retailers for Economic Equality, in exchange for $4,000 in campaign contributions. The organization, representing convenience stores and service station operators, was battling a bill seeking to limit sales of alcoholic beverages at service stations. The bill died in the Assembly before reaching the Senate.

Jackson could not be reached for comment. His attorney, Donald H. Heller, said, “I am satisfied my client is guilty of no wrongdoing and whatever Mr. Robbins is doing to reduce the amount of time he is going to spend in prison should be looked at with some level of skepticism.”

Admitting yet another criminal act involving pending legislation, Robbins said that in 1985 he accepted $12,000 from Sentinel Insurance Co. in exchange for helping with a bill designed to eliminate regulation of the credit life insurance industry--policies that pay off credit card bills in the event of death or disability. The bill, authored by Robbins, passed and was signed into law.

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Again the money was not paid to Robbins directly but was funneled through the Goddard Co., which made payments at Robbins direction, he said.

Ron Gordon, president of the now-bankrupt insurance firm, acknowledged paying the money to Goddard but denied that the payment was meant as a bribe for Robbins.

“I’m shocked,” Gordon said. “I went to Alan in good faith. I acted in good faith as a citizen who deals with a senator.”

Gordon said he thought the money was to be used for research and for entertainment in connection with passage of the bill, but that he never saw the work Goddard supposedly prepared.

According to Robbins’ statement, Goddard also was paid $5,300 from a committee Robbins controlled to support Proposition 99, a 1988 anti-smoking measure that increased taxes on cigarettes.

However, Robbins said, Goddard did no actual work for the committee. “In this way, I was able to use my campaign fund for my own personal benefit,” he said.

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“Jennifer knew and trusted Robbins for 17 years,” said Greenberg, Goddard’s attorney, said. “She received the money from those associated with Robbins in the good-faith belief that the money was used to retain her services, but in the end quite frequently it was returned to those designated by Robbins.”

Robbins admitted that he tried to obstruct the federal investigation by asking Goddard to destroy records and to lie to federal agents. But Greenberg said his client did not comply with Robbins’ request and has turned over her records.

From the moment he entered the courtroom Monday morning, Robbins was grim as he waited his turn among accused bank robbers and drug pushers to make his statement and enter his formal guilty plea. While reading his statement he spoke softly and at times appeared near tears.

Afterward, Robbins was fingerprinted and photographed in the U.S. marshal’s office. At an impromptu press conference outside the courthouse he he bantered with reporters as he did while he was in the Senate.

He expressed relief at having finally made his court appearance. “I feel very unburdened,” he said. “I don’t have to lie any more. I don’t have to worry about covering things up. People can’t make threats on me anymore.”

Many had expected the combative Robbins to fight any charges filed against him. “I considered trying to use legal technicalities or some contrived defense,” he said. But he ultimately decided “to handle this in the proper manner, with as much decorum as could possibly be mustered under the circumstances.”

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When asked if he was “the biggest crook in Sacramento,” Robbins shot back, “No,” but was stopped by his attorneys from elaborating.

His plea agreement is conditioned on Judge Edward J. Garcia’s acceptance of the five-year sentence.

The plea bargain will not solve all of Robbins’ legal problems. U.S. Atty. George O’Connell told the court that Robbins is still the subject of a separate investigation by the U.S. attorney’s office in Los Angeles concerning “financial institution fraud.” Other sources have told The Times that the Southern California probe is focusing on one or more loans that Robbins obtained from Independence Bank of Encino.

Times staff writers Virginia Ellis and Daniel M. Weintraub contributed to this report.

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