Penalties Grow in L.A. Ethics Probe

Advancing a campaign money-laundering case against a major fundraiser for Los Angeles Mayor James K. Hahn, the city Ethics Commission on Thursday disclosed $33,500 in additional penalties involving associates and companies tied to Westside developer Mark Alan Abrams.

In all, two dozen individuals and entities have now agreed to pay a total of $87,500 in fines for hiding the true source of contributions supporting Hahn and two of his City Council allies.

Most of the contributions allegedly came from Abrams or businesses involved with his Beverly Hills-based real estate group, which collapsed amid a fraud scandal two years ago.

Abrams and a partner, Charles Elliott Fitzgerald, now are key figures in a federal investigation of alleged mortgage fraud involving some of the city’s highest-priced neighborhoods. The district attorney’s office also is reviewing Abrams’ fundraising for possible criminal violations.

Abrams raised more than $300,000 for Hahn’s political causes over a three-year period, including $90,000 that authorities allege was illegal. Abrams’ attorney, Nathan Hochman, said that his client was attempting to resolve the Ethics Commission case.

Hahn has said he knew of nothing improper in Abrams’ fundraising or business dealings, and the ethics agency has not implicated the mayor.

Hahn visited Abrams’ office and lunched with the developer. And the mayor’s staff helped Abrams receive high-level City Hall access on a troubled multimillion-dollar development near Bel-Air. Hahn also appointed Abrams’ real estate attorney to the city Planning Commission. The mayor’s spokeswoman said Abrams received no special treatment.

Among the latest donors agreeing to pay penalties for being improperly reimbursed were investors, office assistants and a bookkeeper who worked for Abrams, along with several of their relatives. One investor admitted making an illegal $24,500 contribution to help fund mailers attacking Hahn’s 2001 mayoral rival, Antonio Villaraigosa.

In a separate political money-laundering case, the Ethics Commission disclosed additional proposed fines against former subcontractors to Casden Properties Inc. That brings the total penalties to be paid by Casden Properties, a vice president of the firm, subcontractors and associates to $89,500.

Casden Properties Inc. and firm Vice President John Archibald had previously agreed to pay $42,000 in fines after acknowledging that Archibald had helped a subcontractor for the company launder political contributions to Kathleen Connell’s 2001 mayoral campaign.

Alan Casden, who founded the firm but sold it in 2002, has denied any involvement. The new fines total $47,500 and were stipulated to by five subcontractors and 14 people reimbursed by the subcontractors for political contributions made to a campaign committee for Connell.