Future Unclear for Corruption Probe in Capitol

The expected resignation of U.S. Atty. George L. O’Connell has raised questions about the future of the state Capitol political corruption probe that he has led for two years.

A Republican appointed by President George Bush in 1991, O’Connell is one of 77 U.S. attorneys nationwide who have been asked by Atty. Gen. Janet Reno to submit letters of resignation to President Clinton.

Now Democrats have their turn to name a chief prosecutor in the continuing corruption investigation, which so far has centered mostly on Democrats, although O’Connell has denied that partisan politics were ever a factor.

Sen. Dianne Feinstein (D-Calif.) will recommend a replacement for O’Connell, most likely a Democrat, according to one of her key advisers, and a new U.S. attorney could hold a different view of the corruption probe.

For the time being, the investigations are expected to remain on track under O’Connell.

The prosecutor and his office are preparing for the trials of former state Sen. Paul B. Carpenter and former California Coastal Commissioner Mark L. Nathanson. Last month, prosecutors obtained the indictment of Clayton R. Jackson, a Capitol lobbyist, on charges of racketeering, money laundering and mail fraud.

The grand jury is continuing its investigation of two Republicans, Assemblyman Pat Nolan of Glendale and Sen. Frank Hill of Whittier.

The corruption investigation included a two-year sting operation, called Brispec (for bribery-special interest), in which FBI agents posed as high-flying Southern businessmen seeking legislation to help build a shrimp-processing plant near Sacramento.

Most of the prosecuted to date--though not all--have been of Democrats, prompting some Democratic state legislators to charge that O’Connell has been motivated in part by partisan politics.

In an interview Thursday, Feinstein said the political corruption investigation and the direction it might take will have no impact on her recommendation for a new U.S. attorney in Sacramento.

“Anyone I would nominate I would assume they would aggressively pursue any bona fide investigation,” Feinstein said.

Asked if she had been contacted by anyone regarding the appointment and the status of the investigation, Feinstein said, “No one has mentioned it, written about it, talked to me about it (or) in any way attempted to influence this one way or another.”

She added that the issue was not discussed in a recent meeting with California Assembly Speaker Willie Brown (D-San Francisco).

Brown has at times complained that prosecutors were directing their investigation at him, as one of the most powerful African-American Democrats in the country. And at one point, undercover FBI agents delivered an illegal $1,000 cash payment to a Brown aide as part of the sting operation. The aide returned the money.

Several federal sources said that O’Connell, a 42-year-old Harvard Law School graduate, would like to stay on the job long enough to try Nathanson, a Brown appointee to the Coastal Commission, whose trial is scheduled to begin May 25.

And there is a possibility that some U.S. attorneys will be left in place for several months, although all political appointees have been asked to submit resignation letters, said U.S. Department of Justice spokeswoman Caroline Aronovitz.

Jacobs reported from Sacramento, Bunting from Washington.