Bagman to Testify in Case Against Robles

A New Jersey business consultant pleaded guilty in federal court Thursday to serving as a bagman for South Gate’s former treasurer.

In a deal with prosecutors, Edward T. Espinoza agreed to testify for the prosecution in next month’s trial of former Treasurer Albert Robles, who is accused of funneling money from a variety of city projects to family and friends.

Federal prosecutors estimate that Robles’ relatives and friends received more than $1.6 million from the scheme.

They say Espinoza kept at least $500,000 in return for his role as a conduit.

Espinoza, 50, of Summit, N.J., “has fully and completely accepted responsibility for his actions and intends to assist the government in its ongoing prosecution of corruption in the city of South Gate,” the defendant’s lawyer, Nathan Hochman, said after the brief hearing Thursday.

Robles and his political allies were recalled from office in the small working-class city about seven miles southeast of Los Angeles in 2003 after a tumultuous period in which the city veered toward bankruptcy.

The Los Angeles County district attorney’s office charged Robles with violating election laws and misusing public funds in his unsuccessful attempt to avoid being recalled.

In November, a federal grand jury indicted Robles along with Espinoza and another associate, Michael Klistoff of Seal Beach.

Klistoff, who is scheduled to go on trial with Robles next month, was a waste-disposal company official who allegedly provided gifts and campaign contributions to Robles in exchange for a $48-million trash-hauling and recycling contract.

According to Espinoza’s signed plea agreement, Robles ordered businesses that were seeking city contracts to hire Espinoza or his company, EM Ventures, as a consultant and pay them a portion of the money they received from the city.

Robles would then tell Espinoza how to dispose of the money, the plea agreement says.

The principal contributors were three major contractors:

* Southland Cos., which was the co-recipient of a $24-million city contract.

* United Constructors, which was seeking help in settling a lawsuit over its work on a reservoir.

* PSOMAS, which was seeking a sewer rehabilitation contract.

Espinoza, who remains free on bail, pleaded guilty to four counts of fraud and filing false income tax returns.