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Ex-MTA Official Pleads Guilty to Kickbacks, Tax Evasion : Courts: Abdoul Sesay admits taking $105,100 as part of an agreement with authorities. The name of another contractor surfaces in the investigation.

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TIMES STAFF WRITER

A former top Metropolitan Transportation Authority administrator pleaded guilty Monday to felony charges of kickbacks and tax evasion as new details--and one more name--surfaced in connection with an investigation of the Los Angeles subway project.

In the first criminal case brought in connection with the region’s biggest public works project, Abdoul Sesay pleaded guilty to accepting $105,100 from two businesses that won transit contracts.

Sesay, who oversaw insurance operations for subway construction until he was fired last week, is cooperating with authorities as part of an agreement, according to Assistant U.S. Atty. Marc S. Harris.

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In the June 7 agreement made public Monday, Sesay pledged, if requested, to “act in an undercover capacity . . . and allow authorities to monitor and tape-record conversations with persons who are believed to be engaged in criminal conduct.”

In addition to revealing that Sesay received more in kickbacks than previously reported, Monday’s court hearing produced the name of another contractor accused of making illegal payments.

During the hearing, Sesay admitted to accepting payments of $20,000 and $5,000 from Gilda A. DeSmith after the insurance contractor received about $80,000 in consulting contracts. Records show DeSmith worked as a risk management consultant for the MTA in 1993.

Sesay also admitted receiving a $5,100 payment from John D. McAllister and an additional $75,000 in “payments and other benefits” from the New York insurance consultant. The firm received about $400,000 in business from the MTA and its predecessor, the Los Angeles County Transportation Commission.

Sesay, 45, of Los Angeles, declared that he could not afford to hire an attorney and was represented by a court-appointed lawyer.

Prosecutors say they have not decided whether to bring charges against any contractors involved in the case.

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McAllister has refused comment. His attorney, John S. Crouchley, said his client had done nothing wrong. After attending Monday’s arraignment, the lawyer refused to discuss the allegations that McAllister had bribed Sesay.

“Right now, I can’t answer any substantive questions on this,” Crouchley said.

He said McAllister, who works out of New York, has begun to supply documents in the case to federal authorities as part of their investigation, adding: “We’re working with them and we hope to resolve this without any criminal charges.”

Prosecutors have recommended that Sesay be sentenced to no more than 21 months in prison--far less than the maximum penalty of 23 years. U.S. District Judge George N. King, who has final authority, set sentencing for Nov. 6.

Sesay, who is free on $5,000 bond, declined to comment. His attorney, Ronald J. Nessim, noted that the plea agreement requires Sesay to cooperate with the government. “That is a factor that will be taken into account at his sentencing,” he said.

The charges stemmed from a yearlong investigation by the MTA inspector general, working with the FBI, IRS and U.S. Department of Transportation inspector general.

Times staff writer Eric Lichtblau contributed to this story.

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