$895,000 Fine Seen in Political Laundering Case

State and local investigators will announce today a $895,000 penalty against a giant shipping concern for campaign money-laundering violations--the largest such penalty in U.S. history.

The negotiated settlement involves Evergreen America Corp., whose large family of companies and their employees has donated nearly $200,000 in recent years to officials in Los Angeles City Hall and the state Capitol.

The settlement appears to represent a major breakthrough in a sweeping two-year probe of Los Angeles political fund-raising by the state Fair Political Practices Commission and the city’s Ethics Commission.

Details of the Evergreen case remained sketchy Monday. But interviews and public records show there are at least indirect ties between the firm and former Councilman Arthur K. Snyder, now a prominent City Hall lobbyist and campaign fund-raiser, who is the target of an ongoing money-laundering probe.

Evergreen’s top Los Angeles manager, William Wang, is the brother-in-law of Snyder’s wife. Also, city officials have indicated that there were additional political relationships between Evergreen and Snyder. Former council member Joan Milke Flores, who represented the Harbor area, told The Times on Monday that Snyder helped bring in political donations from Evergreen.

“A couple of times when we called and had to have some (campaign) money or something, (Snyder) was the contact with Evergreen,” Flores said.

Snyder’s attorney, Mark J. Geragos, acknowledged the family relationship between Snyder and Wang. But he said authorities have not advised Snyder of the details of the Evergreen settlement and “as far as we are concerned, it has no connection to Mr. Snyder.”

Geragos said he was unaware of any fund-raising ties between Snyder and Evergreen. Snyder “has absolutely nothing to do with any kind of political money laundering,” he said.

The Taiwan-based Evergreen group of companies includes the world’s largest container shipping lines and is one of the largest tenants in the Port of Los Angeles. The group also recently launched a new international airline, EVA Airlines. It is a closely held firm headed by a former merchant shipping captain.

Evergreen’s attorney, Mark Bend, said he would reserve comment until after a special Los Angeles Ethics Commission meeting today, where the settlement is expected to be approved.

Citing court records, The Times disclosed in December that the Fair Political Practices Commission and the Ethics Commission had launched a broad effort to penetrate allegedly illegal fund-raising practices that had funneled tens of thousands of dollars to state and local candidates.

The two-pronged inquiry involves separate inquiries into Snyder and his associates and former employees of Los Angeles Marathon Inc., the firm with a contract to stage the Los Angeles Marathon. William Burke, president of the firm, has denied any knowledge of wrongdoing.

Specifically, investigators suspect that contributors were recruited to make donations to selected candidates in their own names and were then secretly reimbursed by special interests--a violation of a variety of state and local laws designed to limit donations and to require full disclosure of candidates’ financial backers.

Although no evidence has surfaced that elected officials knew campaign money was donated illegally, investigators say money laundering is a corrupting practice that hides the true political influence that large political contributors and fund-raisers have with elected officials.

In the Snyder probe, investigators alleged that they have found evidence of a “web of money laundering emanating from the offices of . . . Snyder Law Corp.” and involving a number of employees, clients and associates, court records show.

Snyder has not been charged with wrongdoing, and Evergreen has not officially been linked to the former councilman.

A Fair Political Practices Commission spokeswoman said the settlement totaled $895,000, but Ethics Commission officials refused to provide details of the Evergreen case and whether it related to the Snyder probe.

They indicated more information would be a released today.

The largest previous penalty paid in a U.S. campaign corruption or government ethics case was $292,500, involving a Sacramento County supervisor who failed to properly disclose his personal financial interests, officials said.

In the current investigations, administrative charges alleging money laundering have been filed against a Snyder law corporation employee and a firm represented by Snyder’s firm, Bell Cab Co.

In March, Bell Cab was accused by the Ethics Commission of 56 counts of money laundering and violating political contribution limits. In June, the Fair Political Practices Commission filed a 92-count action against the comptroller in Snyder’s law firm, Chi May Chen. Chen and Bell Cab have declined comment.