Donations to Hahn Allies Scrutinized

Two Los Angeles City Council members who were key allies of Mayor James K. Hahn received more than $20,000 in contributions from companies and employees connected to a Hahn fundraiser now at the center of a criminal investigation.

Developer Mark Alan Abrams helped raise the money in 2002 and 2003 for Councilman Tony Cardenas and former Councilman Nick Pacheco. Abrams, who also helped direct more than $300,000 to the mayor’s political campaigns, is a chief target of a federal criminal investigation for his alleged role in a huge real estate fraud, court records show.

On Sunday, City Councilman Bernard C. Parks, a mayoral challenger, called on Hahn to return all the contributions that Abrams raised for his campaigns. The refunds should help compensate those who suffered losses in the alleged real estate scam, Parks said.

Lehman Bros. Bank has sued Abrams, his partner Charles Elliott Fitzgerald and others, claiming they operated a “well-organized conspiracy” to obtain $140 million in fraudulent mortgage loans on more than 80 homes. Losses to Lehman Bros. and other claimants could total $50 million.

Parks also urged the mayor to remove Planning Commissioner Thomas E. Schiff, who was appointed by Hahn at the developer’s recommendation. Parks said it was unethical for Hahn to allow Abrams, a campaign fundraiser and developer, to dictate political appointments to a commission that oversees development and zoning issues.

His remarks followed a story in The Times on Sunday detailing the relationship between Abrams and the mayor, including how Hahn appointed Schiff and how the developer received high-level City Hall access as he sought a permit for a multimillion-dollar development.

The mayor’s reelection campaign spokeswoman, Julie Wong, said Sunday that “Bernard Parks is clearly using this as a political gimmick.” She said Abrams received no special treatment.

Schiff’s attorney, Gary Lincenberg, said Sunday that his client “intends to stay on the commission. He’s doing a great job.”

The Los Angeles Ethics Commission is investigating contributions arranged by Abrams to Hahn’s campaigns, as well as those to Cardenas in 2002 and to Pacheco last year, according to federal court records and contributors contacted by authorities.

Abrams’ attorney, Nathan J. Hochman, has declined to discuss any political fundraising activities or ongoing investigations. Fitzgerald has fled the country and could not be located for comment.

Hahn, in a recent interview, said he could not recall how Schiff came to his attention and that he knew of no connection between the attorney and Abrams. Records obtained from the mayor’s office show that Abrams suggested Schiff for the coveted appointment.

Schiff had never met Hahn at the time the mayor nominated him for a seat on the commission. A meeting between the two came only after Schiff’s appointment, at a photo session arranged by Abrams, said Lincenberg. The October 2002 gathering appears to have been held in the offices of the campaign treasurer for a committee formed by Hahn to fight secession efforts. A company connected to Abrams contributed a total of $225,000 to the Hahn committee, L.A. United.

The mayor acknowledged attending a photo session but said he could not recall details. The campaign treasurer, David Gould, said he could not recall the photo session.

Lincenberg said Schiff was not involved in making any contributions to Hahn or his political causes before being appointed to the Planning Commission. The commissioner also knows of nothing improper in his appointment and has served as an independent member of the panel, Lincenberg said.

Abrams also held a separate photo session at his Beverly Hills office around October 2002 with Schiff, Cardenas and City Council President Alex Padilla.

Both Padilla and Cardenas, then a state assemblyman, had provided key backing for Hahn in his 2001 mayoral race against Antonio Villaraigosa. Around the same time as the photo session, Cardenas received 26 contributions of $500 each, the maximum allowed, from companies and individuals connected to Abrams and Fitzgerald. At least some of the $13,000 total was reimbursed by Abrams, said Matthew Compton, an Abrams associate.

“Mark [Abrams] went around asking us to write checks and then he’d give us cash,” said Compton, who along with three relatives gave a total of $2,000 to Cardenas.

Compton, a defendant in the Lehman Bros. case, said he described alleged reimbursements to an Ethics Commission investigator. Hiding the true source of political contributions can lead to both civil and criminal penalties under state and local laws.

Cardenas said in an interview that he knew of nothing improper with the donations and was not aware of any investigation of contributions to his campaign. He said he went to Abrams’ office at the developer’s request and was not aware that Abrams was a political supporter of the mayor.

Padilla, through a spokesman, acknowledged attending a photo session with Schiff at Abrams’ office.

Pacheco, who lost his council seat to Villaraigosa last year, received $8,500 in contributions from the Abrams-Fitzgerald group in February 2003. Pacheco said that he could not recall meeting Abrams or any of the other donors and that he knew of nothing improper about their contributions.