Cab Company Cited in Money Laundering Case : Ethics: Bell Cab is accused of improper contributions totaling $11,000 to City Council members and candidates in 1990 and 1991. Firm was seeking a lucrative city permit at the time.

Pressing ahead with its first major enforcement case, the Los Angeles Ethics Commission on Thursday accused a city cab company of 56 counts of campaign money laundering and violating political contribution limits.

Bell Cab Co., which operates across large areas of central and western Los Angeles, is accused of arranging more than 20 improper contributions totaling $11,000 to City Council members and council candidates in 1990 and 1991. The firm faces fines of up to $280,000 if all the charges are upheld at a hearing before the Ethics Commission.

The accusations come during an investigation involving former Councilman Arthur K. Snyder, a prominent lobbyist whose law firm represents Bell Cab at City Hall. The Times, citing court records, disclosed last year that state and local investigators suspect that Bell Cab has been part of a “web of money laundering emanating from the offices of . . . Snyder Law Corporation and involving its employees.”

Felix Offor, Bell Cab’s operations manager, declined to comment, saying he had not reviewed the allegations. The firm’s attorney, Susan Strick, also declined to comment.

Snyder has denied any wrongdoing and was not named in the accusations filed Thursday. His attorney, Mark J. Geragos, said he has seen no evidence linking Snyder to improper contributions and predicted that the former councilman will not be charged in the case.

He said Thursday’s accusations against Snyder’s client appear to be “grasping at straws.”

Ethics Commission officials declined to comment but issued a statement alleging that Bell Cab intentionally laundered contributions “to conceal its identity and circumvent the city’s contribution limits. The laundering activity deprived the public of knowing the true source of campaign contributions.”

Bell Cab, which has been involved in franchise battles at City Hall, is accused of funneling improper contributions in 1990 and 1991 to council members Hal Bernson, Ruth Galanter, Mike Hernandez, Mark Ridley-Thomas, Rita Walters and Michael Woo, as well as to two unsuccessful council candidates.

The accusation does not allege that the candidates knew that the donations were illegal. But political watchdog groups say candidates often know the fund-raisers who are helping to bring in contributions--a fact that increases their influence.

Present and former employees of Bell Cab have admitted making contributions for which they were reimbursed by the firm, according to court records.

Those records note that the allegedly illegal contributions by the cab company coincided with the firm’s effort to obtain a lucrative city permit to operate at Los Angeles International Airport. Snyder and his firm represented the cab company in seeking the permit.

One former Bell Cab employee told The Times last year that some contributions were intended to boost the cab company’s profile as it sought the permit.

As the accusations against Bell were issued, the probe of Snyder and his associates--being conducted jointly by the city ethics agency and the state Fair Political Practices Commission--is continuing, said an FPPC spokeswoman. It is one of two investigations into networks of individuals and firms that allegedly funneled tens of thousands of dollars in improper donations to local and state candidates. The other inquiry involves former employees of the firm that has the contract to stage the multimillion-dollar Los Angeles Marathon. William Burke, the firm’s president, has denied any wrongdoing.

Specifically, investigators suspect that contributors were recruited to make donations in their own names and then were secretly reimbursed, records show.

Geragos, Snyder’s attorney, said Snyder often advises clients on political contributions--which he said is a typical, legal activity of lobbyists. He said he could not comment on whether Snyder advised Bell Cab on donations. In any case, he said, Snyder knew of no improper donations.

Bell won the Los Angeles International operating permit, despite objections by employees of the Department of Transportation, said Tim Cude, a department official.

The department was concerned that Bell’s request was not in keeping with the firm’s 1987 franchise agreement, which it won by pledging to concentrate on improving service in the city’s core.

The accusations against Bell Cab carry a $5,000 per count maximum fine.

The case goes to the full Ethics Commission, which may conduct a hearing before deciding the case or vote to accept or reject any negotiated settlement that is reached. No hearing date has been set.