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Perata Promises to Cooperate in Any Probe

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Times Staff Writers

State Sen. Don Perata, the incoming leader of the upper house, vowed Thursday to cooperate with any investigation into his business affairs but also said federal agents have not contacted him or his aides.

The veteran East Bay politician made a brief statement to reporters in a hallway at the Airport Hilton Hotel, where he had been speaking at Oakland’s African American Chamber of Commerce’s annual luncheon.

For the record:

12:00 a.m. Dec. 2, 2004 For The Record
Los Angeles Times Thursday December 02, 2004 Home Edition Main News Part A Page 2 News Desk 2 inches; 99 words Type of Material: Correction
Federal subpoena -- A Nov. 19 article in the California section contained an error in describing a subpoena issued as part of a federal investigation related to state Sen. Don Perata and others. The article incorrectly stated that in one subpoena, the FBI sought information related to former Oakland port official Phil Tagami, among others. Tagami was not named in that subpoena. The FBI has sought information on other people and businesses in a separate subpoena for records of a campaign committee that Tagami controls. A subpoena does not necessarily imply wrongdoing by recipients or individuals named in it.

“I have not been, nor has my office, been in contact with any authorities associated with any investigation,” said Perata (D-Oakland). “Obviously, if I am and when I am, we’ll fully cooperate.”

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Word of the investigation came as Perata prepared to assume one of the most powerful posts in California. He was narrowly elected by secret vote in August. A formal, public vote is expected when the Legislature returns to the Capitol in early December.

The FBI issued subpoenas as early as the first week of November seeking information related to Perata and several of his business associates, said people familiar with some aspects of the investigation.

In at least one subpoena, the FBI sought information related to Timothy Staples, a former business partner of Perata’s who has worked on his campaigns; Phil Tagami, a former Oakland port official; Perata’s son, Nick, who also has worked on his father’s campaigns; and Lily Hu, an Oakland lobbyist who briefly worked on Perata’s legislative staff in Oakland in the 1990s.

On his statements of economic interest, a disclosure form that all officeholders must file, Perata reported receiving payments from Staples dating to 2000. Perata has said he ended his business relationship with Staples earlier this year.

The scope of the investigation and its targets were not clear. The FBI and the U.S. attorney’s office in San Francisco have declined to discuss the matter.

Nick Perata, Staples and Tagami could not be reached. An Oakland port spokeswoman said Thursday that the FBI had made no inquiries at the port.

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Hu’s attorney, San Francisco criminal law specialist Doron Weinberg, said the probe would show there were no “improprieties.”

Weinberg said the investigation appeared to be based on allegations from Hu’s estranged companion, Frank Wishom, who became distraught as their relationship ended.

At Hu’s request, an Alameda County Superior Court judge issued a restraining order directing that Wishom leave Hu alone. Wishom died last year. In the court file, Wishom and Hu’s attorney made reference to Wishom’s allegations -- without elaboration -- about political “kickbacks.”

“If there is an investigation -- and it appears that there is -- we are confident that it will reveal that there were no improprieties in Lily’s work as a lobbyist or in her relationship with Don Perata,” Weinberg said.

Perata, a former high school English and civics teacher, said Thursday he was intent on serving as “the new leader of the state Senate,” and vowed to work with Gov. Arnold Schwarzenegger and the Assembly “to make sure that this year is a better year than last.”

“I am excited about that opportunity,” Perata said. “I am working hard to make the most of those opportunities for the state and for my own community.”

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Perata noted that the crowd he addressed, African American entrepreneurs, “want to hear how Sacramento can help them rebuild their communities so they can take the rightful place that they deserve in our society.”

Reporters were not allowed in to hear his speech.

State Sen. Gil Cedillo (D-Los Angeles), meanwhile, gave Perata a vote of confidence Thursday, saying he was proving to be a “good, strong leader,” reorganizing the upper house to reduce the number of committees in the interest of effectiveness and efficiency.

Perata has appointed Cedillo, who backed his main rival for the leadership spot, to the powerful Rules Committee.

“Unless there is an adverse resolution, I don’t think there will be any problems with his tenure,” Cedillo said, referring to the investigation. “Fortunately, we live in a country [where] you are innocent until proven otherwise.”

Board of Equalization member Carole Migden, a San Francisco Democrat and former assemblywoman who won a state Senate seat this month, also offered Perata her support, describing the inquiry as “preliminary.”

“I have complete and total confidence in Sen. Perata, and I am satisfied that this will not be a long-term problem for him,” Migden said. “In the meantime, he has my unequivocal support as our Senate president.”

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