Aide Caught in Sting Faults Fund-Raising Practices : Corruption: Legislative employees should stop soliciting money for their bosses, Shahabian says, if there is to be complete ethical reform in politics.

John Shahabian, the high-level aide caught in an FBI investigation of political corruption in the California Legislature, said Wednesday that there will not be complete ethics reform until legislative employees abandon the practice of raising campaign funds for their bosses.

Shahabian, who later became an FBI informant and was not prosecuted after the sting became public in August, 1988, told The Times that use of Assembly and Senate employees on the public payroll to indirectly solicit campaign money is a “glaring source of abuse.”

In his first extensive interview since the FBI raid of legislative offices, Shahabian termed a “very good step in the right direction” the ethics reforms recently enacted by the Legislature and voters.

But he said he believes that fund raising by legislative staff members in top-level positions remains a serious barrier to separating important public policy decisions from political money decisions.

Enacting reforms that would abolish the subtle and indirect solicitation of political funds from lobbyists by staffers, Shahabian said, “is the No. 1 area . . . which would have the most impact in cleaning up the Legislature--not politics--but the Legislature.”

Shahabian got stung in 1987 for his part in arranging a $20,000 contribution to his boss, then-Sen. Paul Carpenter (D-Cypress), as part of an FBI plan to win passage of a bill sponsored by a bogus shrimp processing company. Faced with possible federal charges and prison, Shahabian agreed to cooperate as an informant, carrying secret recording devices, in the federal probe of suspected corruption in the Legislature.

He was granted immunity. His efforts helped convict veteran Sen. Joseph B. Montoya (D-Whittier), who recently was sentenced to 6 1/2 years in prison on political corruption charges. Similar charges have been brought against Carpenter, now a member of the State Board of Equalization. Four other legislators are under investigation.

During The Times’ interview, Shahabian refused to answer questions that he said may be issues in the trial of Carpenter or anyone else who might be charged. He was fired as a Senate consultant this spring shortly after Montoya’s conviction.

State and federal laws prohibit legislators and their employees from seeking campaign contributions in exchange for action on legislation. However, the shadowy practice of staffers indirectly and subtly encouraging campaign contributions from lobbyists has occurred for years.

Lobbyists with bills pending in committees long have complained privately of receiving phone calls from legislative staffers “reminding” them of upcoming political fund-raisers for their bosses. Rarely, if ever, is the fund-raiser mentioned in connection with legislation, but the message is clear, lobbyists say.

Over the years, legislators and their staff members have stoutly denied any illegality or even the appearance of impropriety.

“Part of the problem, and this includes myself, is (that staffers) came to the opinion that it was virtually legal to raise funds in connection with legislation,” Shahabian said. “It was so commonplace and there was no enforcement against it.”

Shahabian, who came to the Legislature in 1974 as a graduate student on a fellowship and worked his way up to become a senior staff member with expertise in running political campaigns, said a key to advancement is anticipating what the legislator will need, and this inevitably leads to fund raising.

“It is not necessary for the boss to (do all fund raising) personally,” he said. “So there is a natural inclination for the staff person to get involved in everything the boss is involved in. No one in a very senior staff position gets there without knowing where the money in politics comes from and without knowing what toes not to step on.”

Shahabian, officially a consultant to Carpenter’s Pacific Rim committee, said it was unusual for him to participate in fund raising but that he got involved with the phony shrimp company legislation and contributions to “make some points” with Carpenter.

Now unemployed and living off savings and his wife’s salary, Shahabian, father of two young daughters, said he is writing a book on his political experiences and is looking for work, possibly as a campaign strategist for consumer advocacy and environmental protection organizations.

“I was a pretty high-level political campaign person and I’d like to give some of that skill back,” he said.