Investigation Ignites Uproar in San Fernando : Politics: The city’s parks director is alleged to have misused municipal employees and funds. Charges and countercharges ensue.

A police investigation into allegations of abuse of powers by Jess Margarito, a controversial but well-liked former mayor, has set off a political brouhaha involving San Fernando’s top political figures.

Margarito, a leading Latino activist and currently the city director of recreation and community services, is being investigated for possible misuse of city employees and funds by both the Los Angeles County district attorney’s office and the San Fernando Police Department.

A police detective indicated Tuesday that investigators are looking into conduct that could lead to criminal charges. “I think at this point there are things that can be looked at in a light other than administrative” wrongdoing, Lt. Ernie Halcon said.

Margarito acknowledged Tuesday that he will have to “own up” to some improprieties, but said he did nothing illegal.

Halcon’s questioning of park employees last week stirred up some residents who have supported Margarito since his days as mayor in the mid-1980s.

As a result, what began as a confidential request by the City Council to the city attorney last month to examine the conduct of Margarito spilled out into the open Monday night, as residents and Margarito’s supporters showed up at the council meeting, demanding to know what the council had done in the Margarito case.

They got few answers from the council and City Atty. Julia Sylva, who cited laws allowing them to keep personnel matters out of public forums.

But it proved too late. A City Council memorandum that Margarito distributed at the meeting laid out the squabbles for all to see. Among them: that Sylva allegedly interrupted last week’s police questioning of a park employee, after which council members accused her of “unprofessional” behavior and a potential conflict of interest due to a personal friendship with Margarito.

Sylva called those allegations “misinformation” Tuesday, but refused to comment on what she termed a personnel matter. However, she called the release of the memorandum “very inappropriate.”

Exactly when the City Council asked for the administrative investigation is unclear because it occurred in a non-public session. But Halcon said he began questioning employees last Monday.

Margarito said some of his employees later complained that the questioning constituted browbeating and “an inquisition.” None of the department’s employees has made such an accusation publicly, however.

Halcon said Tuesday that he did not intimidate anyone, and conducted the interviews with a tape recorder in a large room with the curtains open. He confirmed that Sylva interrupted him and engaged in a heated discussion.

“We had a clash over my methods,” Halcon said.

Sylva’s action sparked a bitter memorandum to her filed Nov. 9 by three council members who objected to her interrupting Halcon: “I’d like to observe that I have never seen or heard of an unprofessional behavior like this in all the years I have been involved in the community,” wrote City Councilman Doude Wysbeek in a statement signed by fellow council members Raymond Ojeda and Mayor Dan Acuna.

All three stood by the memorandum Tuesday.

Sylva had been assigned by the council to look into allegations of misconduct lodged against Margarito by a former park worker, and had been asked to turn over her results to the police, according to the memo.

But at Monday night’s meeting, council members Jose Hernandez and Rosa Chacon said they were not sure the council had decided to give the police the lead in the inquiry, and demanded that future closed sessions be recorded to avoid policy confusion.

Since the spring, Margarito has been the subject of an investigation by the district attorney’s office involving alleged kickbacks, loan improprieties, falsified work orders or time cards, and use of city employees at his home.

Margarito said Tuesday that district attorney’s investigators questioned him about six invoices valued between $75 and $525, and three cases in which he “signed off” workers who were sentenced by judges to work in city parks.

In addition, he said, investigators have questioned him and others about kickbacks and use of workers at his home for his personal benefit--all of which he denied Tuesday.

“I’m owning up to the things I’m responsible for,” Margarito said. “I think I’m justified in doing what I did.”

The controversy began when Margarito, as head of the park department, investigated sexual harassment accusations by other employees against a former city park supervisor. The supervisor later made countercharges against Margarito, which brought on the district attorney’s investigation.

In turn, Margarito and five other city employees filed complaints with the state Department of Fair Employment and Housing, accusing city officials of retaliation and harassment. The complaints are pending.

The prolonged investigations have deeply divided the City Council and agitated some of Margarito’s longtime supporters.

“It’s sad,” said Acuna. “I feel bad that we have to deal with this.”