L.A. Officials Told to Repay Illegal Funds : Campaigns: Ethics Commission orders repayment of $36,500 in laundered contributions. One councilman calls the panel’s order unfair.

Several present and former Los Angeles city officials have been instructed to repay $36,500 in campaign contributions in connection with a major political money laundering case--prompting cries of foul Monday from at least one City Council member.

In letters sent to five council members, former Mayor Tom Bradley and two unsuccessful council candidates, the Los Angeles Ethics Commission has called for the return of contributions made by Evergreen America Corp., which last month admitted making more than $170,000 in illegal donations to state and local candidates over a four-year period.

The giant Taiwan-based container ship operator agreed to pay the Ethics Commission and the state Fair Political Practices Commission $895,000 in penalties, the largest such fine in U.S. history.

The case appeared to be one of a number of probes of suspected money laundering centered around former Los Angeles Councilman Arthur Snyder, now a prominent City Hall lobbyist. Snyder has denied any wrongdoing.

The ethics agency is seeking repayment to the city treasury of improper Evergreen contributions, citing a provision of the City Charter. The officials or former candidates involved have not been accused of intentionally taking the illegal donations. Nevertheless, return of the money is legally required to ensure “that no one should benefit from the illegal contributions, even if they were received unknowingly,” said Dennis Curtis, the Ethics Commission president.

A spokesman for Councilman Hal Bernson, who has been instructed to return the largest sum, $10,000, disputed the Ethics Commission interpretation of the repayment requirement. Bernson and other officials insist they had no idea Evergreen was funneling improper funds.

“We’re getting penalized for something we didn’t do,” said Greig Smith, Bernson’s chief of staff.

Bernson’s lawyers are reviewing the legality of the Ethics Commission’s order, Smith said.

Others told to return laundered funds are council members Richard Alatorre and Ruth Galanter, $7,500 each; council member Nate Holden and former Mayor Bradley, $5,000 each; City Councilman Mike Hernandez, $500, and former council candidates Kerman Maddox and Billy Mills Jr., $500 each.

The funds may be repaid from personal accounts, any existing political fund or by a special, limited fund-raising effort, officials said.

Alatorre said he will return the money if the law requires it.