Alatorre Says He Paid Bills With Cash From Assembly

Los Angeles Councilman Richard Alatorre, whose personal finances and public actions are under federal investigation, offered his first explanation Tuesday of thousands of dollars in cash he used to pay private expenses in recent years.

Returning to the witness stand in a contentious child custody case, the Eastside lawmaker told Superior Court Judge Henry W. Shatford that he had accumulated “lots of cash” from per diem payments he saved during his days in the Legislature.

Alatorre’s cash transactions are one of several matters under scrutiny by investigators for the FBI, Internal Revenue Service and Metropolitan Transportation Authority’s inspector general, who are working with the U.S. attorney’s office in a wide-ranging corruption probe.

Alatorre, who is also an influential MTA board member, has denied any wrongdoing.

Among the allegations buffeting the councilman in recent months have been accusations by his former City Hall secretary, who claims the lawmaker produced wads of $100 bills to help cover personal expenses after meeting individuals with city business.

Tuesday’s testimony was Alatorre’s most detailed explanation to date of how he acquired cash he says he kept at his home and dipped into to cover personal bills.

Shatford is considering alleged financial improprieties by Alatorre and his wife, Angie, in a case that will determine whether the couple retains guardianship of their 10-year-old niece, who has lived with them full time for the past two years. The girl’s father, one of Alatorre’s longtime political rivals, is seeking to prove that the Alatorres are unfit caretakers. The girl’s mother died in 1996.

The Alatorres contend that Henry Lozano has provided no support for his daughter and shown little interest in her well-being.

Alatorre testified Tuesday that during his years in the Assembly, from 1973 to 1985, he “saved a lot of money” from per diem payments. The approximately $120-per-day allowances are provided to help lawmakers cover living expenses in Sacramento. Per diem is paid by separate check and can total several thousand dollars per year.

“I’ve had a lot of cash . . . that I’ve accumulated” from per diem, he said.

Under intense questioning by Lozano’s attorney, Ricardo A. Torres, the lawmaker declined to say, even generally, how much cash he had stockpiled before coming to the City Council in 1986. But he insisted he had “thousands of dollars” still on hand as late as 1995.

Torres, suggesting the councilman was inventing a story to explain the cash, pressed Alatorre to give some estimate of the amounts he still had available a decade after leaving Sacramento. “I said, ‘thousands of dollars,’ ” Alatorre answered.

“Is it more than $3,000?” Torres asked.

“I said, ‘thousands of dollars,’ ” Alatorre responded.

“Is it more than $5,000?” Torres inquired.

“I said, ‘thousands of dollars,’ ” the councilman repeated.

The account of his finances offered Tuesday by Alatorre appears at odds with one the councilman filed in divorce proceedings in 1990, after moving to the City Council. At that time, court records show, Alatorre declared he had no savings and only about $100 in his checking account.

On another topic under federal investigation, Alatorre explained for the first time how a prominent government contractor came to be involved in the financing of a new roof installed in 1996 on the councilman’s Eagle Rock home.

Alatorre told Shatford he approached either David C. Lizarraga or the man’s son, Michael, top executives with the East Los Angeles Community Union (TELACU).

David Lizarraga has been a longtime friend and political ally of Alatorre. About the same time he sought the help of the TELACU officials, Alatorre was backing a TELACU team for a $65-million MTA subway contract. He was also helping a TELACU partnership win a crucial, $2-million city development loan for a shopping center in his district.

As of the beginning of this month, Alatorre had not disclosed any financial relationship with TELACU on his economic interest forms. Generally, elected officials must report obligations to government contractors.

Alatorre on Tuesday also changed previous testimony regarding the new roof. He had testified July 31 that TELACU had advanced funds for the improvement. He told Shatford then that he had paid the Eastside conglomerate $2,000 in cash, and still owed the firm $10,000.

Tuesday, however, he said he had not paid TELACU anything and acknowledged that, in fact, he still owes the firm $13,200.

“I got confused,” Alatorre said, explaining that he mixed up the payment with an outlay for funeral expenses for his sister-in-law, who died in January 1996.

Torres, Lozano’s attorney, introduced a subpoenaed invoice addressed to Alatorre from TELACU. The billing was undated and the councilman said under questioning that he did not receive it until eight or nine months after the work was completed. Torres questioned Alatorre about the document, suggesting it was a fabrication and that he never intended to pay TELACU for the roof.

Alatorre strongly denied that, insisting he always intended to pay back TELACU. He is scheduled to return to the witness stand today.

TELACU officials, who have previously declined to comment, could not be reached Tuesday.