Nolan to Plead Guilty to Racketeering, Resign : State capital: Sources say assemblyman has struck a deal. He reportedly will get a 33-month prison term.

Assemblyman Pat Nolan (R-Glendale) has struck a deal with federal prosecutors to plead guilty to political corruption charges and resign his office, The Times has learned.

Sources familiar with the case said the former Republican Assembly leader has agreed in principle to enter a guilty plea to one racketeering count in exchange for a sentence of 33 months in prison rather than face a lengthy trial on six criminal counts that each carry a sentence of up to 20 years.

U.S. Atty. Charles J. Stevens would not spell out the details of the agreement but confirmed that negotiations were under way and that he expected a resolution today. A source told The Times that Nolan sent a letter of resignation to Speaker Willie Brown late Thursday.

Nolan, 43, could not reached for comment. He was seen driving into the garage of his suburban home south of the Capitol, but declined to come to the door.

Nolan would be the first Republican legislator convicted in an eight-year investigation of corruption in the Capitol, which has led to the conviction or indictment of 11 others.

Sources familiar with Nolan’s case say that the legislator sought the deal because he was troubled by the 6 1/2-year sentence given earlier this week to lobbyist Clayton R. Jackson after his conviction on corruption charges. Nolan knew that as an elected official he faced an even stiffer sentence if convicted, these sources said.

His older brother, Mike Nolan, who lives in the Los Angeles area, said the legislator was concerned about the impact that a costly trial and a lengthy sentence would have on his young family.

“Pat’s obligation to his wife and three children were the No. 1 thing on his mind,” Mike Nolan said. “Looking at the decisions the juries have rendered recently (in political corruption cases), lord knows what could happen. . . . If he continued to pay for his defense, the Irish fellow wouldn’t be able to leave much money in the bank account.”

Stevens said late Thursday, “I can tell you that we expect to have an announcement on that matter (today). I can tell you in fact that we’re negotiating with his counsel to resolve the matter with a plea agreement but nothing has been finalized as we speak.”

Nolan’s attorney, Malcolm Segal, said, “It would be inappropriate to comment.”

First elected to the Assembly in 1978 in the wake of tax-cutting Proposition 13, Nolan was considered a rising star in Republican politics and a possible aspirant for statewide office. A darling of conservatives, Nolan led an insurgent group of GOP Assembly members who were dubbed “the cavemen” because of their staunch views on taxes and social programs. By 1984, he had become Assembly Republican leader and had hopes of becoming Speaker.

Those dreams evaporated in 1988 when a team of FBI and IRS agents armed with warrants swept through the Capitol, searching the offices of Nolan and three other legislators.

Soon after the raid, it was clear that he had accepted two $5,000 campaign checks from undercover agents posing as businessmen and seeking help with special interest legislation. The scene of Nolan accepting the payments in a hotel across from the Capitol was captured on videotape, and the tape was expected to be a crucial piece of evidence against him.

He stepped down as Assembly minority leader, but continued to play an active role in the Republican caucus. He was reelected three times to a district that now includes Glendale, Burbank and part of Hollywood.

Almost five years after the raid, he was indicted on corruption charges, along with Sen. Frank Hill (R-Whittier) and a former Democratic legislative aide, Terry E. Frost. All three pleaded not guilty to the charges, and their trial was set to begin next month. Neither Hill nor Frost could be reached for comment late Thursday.

In the grand jury indictment last April, Nolan was accused of using his office as a racketeering enterprise to solicit a series of bribes from individuals seeking his support on bills before the Legislature.

Nolan has insisted on his innocence, most recently Feb. 4, when he announced for reelection. At the time, he acknowledged that the race would be tougher than usual because of the specter of his trial. But he confidently predicted that he would “be able to clear my name before the election.”

As a candidate, Nolan raised $203,236 in the last six months of 1993. As the case moved toward trial, much of Nolan’s campaign treasury was diverted to legal fees. He racked up $200,000 in attorney bills, according to campaign finance reports.

The federal corruption investigation, which formally began in 1985, has led to the conviction or indictment of 12 people, including Nolan. Those who have entered guilty pleas have generally fared better than those who have not. Former Sen. Alan Robbins (D-Van Nuys), for example, is expected to be released from a federal halfway house next month after serving less than two years in prison. He cooperated with authorities in the ongoing corruption investigation and was a star witness against Jackson.

In contrast, Nolan is hoping to hammer out a deal in which he would not be required to testify against others, according to one source.

However, when one defendant pleads guilty in a criminal case, it is common for prosecutors to call on that individual to testify against others in the same matter.

The news of Nolan’s pending plea bargain raced through the Capitol on Thursday, surprising even his biggest defenders.

Even his brother was taken aback. “I don’t think my brother has done anything wrong,” Mike Nolan said, “and I hoped he would have a chance to prove that.”

Times staff writers Cynthia H. Craft, Virginia Ellis and Dan Morain contributed to this story.