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Snyder Denies Any Link to Money Probe : Ethics: Lawyers are trying to halt efforts to look at the excouncilman’s bank records in money-laundering inquiry.

TIMES STAFF WRITER

Attorneys for former Los Angeles Councilman Arthur K. Snyder disputed Thursday in court papers that state and local investigators have shown any evidence linking Snyder or his law firm to alleged campaign money laundering.

Seeking to quash subpoenas for bank records issued by the state Fair Political Practices Commission, the attorneys contended that court documents filed by investigators this week--and detailed by The Times on Wednesday--”contain no facts suggesting wrongdoing” by Snyder or his firm.

Investigators, in their effort to tie Snyder and his firm to a few “discrete” acts of possible misconduct by others resorted to “vague hearsay,” misrepresentations and the notion that a “few bad apples spoil the whole barrel,” the attorneys argued.

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“The point of it is the FPPC did not have as much as their papers imply they do,” James Sutton, Synder’s lawyer, said in a telephone interview. “We are saying, therefore, they do not have any probable cause to look at anyone’s bank records.”

The FPPC, working with the Los Angeles Ethics Commission, is investigating allegations that Snyder, his law firm and several associates are part of a complex political money-laundering network that has illegally funneled thousands of dollars to politicians.

Chi May Chen, an employee of Snyder’s firm, allegedly used bundles of $100 bills to reimburse herself and others she recruited to make contributions, the commission records contend. Chen told witnesses her “boss” asked her to seek contributions and the money reimbursed to contributors came form her “boss,” according to the state’s records.

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The boss is not identified. Chen has not responded to several requests for comment.

Snyder, who served 18 years on the council before resigning in 1985, told The Times he has no knowledge of any contributors being reimbursed.

Sutton said suspicions that Chen or others may have done something improper does not give investigators a right to invade Snyder’s privacy, or violate attorney-client confidentiality by issuing broad subpoenas for his law firm’s banking records.

Sutton claimed that the Ethics Commission “views fund raising at City Hall as wrong” and is angry at Snyder for refusing to disclose his lobbying clients and the payments he receives--maintaining that that would violate attorney-client confidentiality.

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Ben Bycel, executive director of the Ethics Commission, said: “Unlike Mr. Sutton, who wants to fight this out in the press, our arguments are reserved for the appropriate place--the courtroom.”

State and local investigators also are probing alleged money laundering involving present and former employees of a politically connected firm that holds the city contract to stage the multimillion-dollar Los Angeles Marathon.

Marathon President William A. Burke, has denied wrongdoing.

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