Inquiry Links Snyder to Money Laundering : Politics: Ex-councilman’s law firm allegedly was source of illegal contributions. His lawyer disputes claims.

State and local investigators have pieced together evidence of a complex scheme of campaign money laundering allegedly involving former Los Angeles Councilman Arthur K. Snyder, his law firm and several associates, according to newly filed court records.

The documents offer a rare inside glimpse into one of City Hall’s most prominent lobbying and campaign fund-raising operations--one in which bundles of $100 bills allegedly were used to illegally reimburse political contributors recruited to make donations to favored candidates.

The records, filed Monday by state authorities after Snyder and his associates challenged subpoenas for bank records, provide fresh details of a joint investigation by the state Fair Political Practices Commission and the city Ethics Commission that was disclosed by The Times in October.

“The evidence appears to show a web of money laundering emanating from the offices of . . . Snyder Law Corp. and involving its employees,” the records state. The tentacles of the suspected money laundering network--involving various alleged efforts to hide the source of thousands of dollars in political contributions--appear to include employees of Snyder’s companies, some of his lobbying clients and others, the records state.

No formal charges have been filed, but such activity can be a violation of state and local campaign laws and “conceals from the public the influence of large contributors over public officials,” FPPC attorney Mark Morodomi wrote in a legal brief filed in Superior Court.

Snyder did not respond to requests for comment Tuesday. In a brief interview last month, he said he never reimbursed a political contributor and had no knowledge of others doing so.

Snyder’s attorney, James Sutton, on Tuesday disputed the claims contained in the papers. “The facts, the records, the interviews that they talk about in their papers do not show a web of laundering emanating from (Snyder’s) law firm,” Sutton said.

He said the investigators have cited a few isolated cases of alleged money laundering that will “be checked on a case-by-case basis (as the investigation moves) through administrative and legal proceedings.”

Sutton asserted that the documents were an overblown attempt to persuade a judge to grant subpoenas of bank records that Snyder and his associates believe are legally protected.

Among the latest allegations contained in court records:

* An employee of Snyder’s law firm, who may have been a conduit for some of the donations in question, used bundles of $100 bills to reimburse herself and others whom she recruited to make political contributions. The employee, Chi May (Marian) Chen, said the reimbursement money came from her “boss,” witnesses told investigators. Four contributors have admitted being reimbursed by Chen for a total of about $10,000. Chen did not respond to calls seeking comment.

* One client of Snyder’s firm, Bell Cab Co., made at least 13 possibly laundered contributions totaling $6,500 to council members at a time when the firm was seeking a permit to operate at Los Angeles International Airport. A Bell Cab manager and a former bookkeeper confirmed in interviews with The Times that they were reimbursed for contributions.

* Money laundering is suspected in connection with another Snyder client, the Broadway Trade Center, a downtown building partnership that pushed a controversial proposal last year to become a new hub of the garment industry. Among items of interest to investigators are at least eight contributions last year--totaling $4,000--made on the same date to Councilwoman Rita Walters, then a candidate in the downtown district. Walters has denied any knowledge of improper contributions. Broadway Trade Center officials were not available for comment, although an attorney for the center said any improper contributions may have resulted from a misunderstanding of campaign laws.

The money-laundering inquiry involving Snyder and his associates is one of two being conducted jointly in Los Angeles by the FPPC and the Ethics Commission. The second investigation involves present and former employees of a politically connected firm with a city contract to stage the multimillion-dollar Los Angeles Marathon, records show. William A. Burke, president of the Los Angeles Marathon, has denied any wrongdoing and predicted nothing will come of the investigation.

Investigators suspect the two networks may have illegally funneled tens of thousands of dollars in illegal contributions to state and local politicians since 1989, The Times previously reported.

Court documents hint that investigators have mounted a far-reaching effort to penetrate the inner workings of political fund raising in the city. The FPPC and the Ethics Commission have declined to discuss details of the inquiries.

But Ben Bycel, executive director of the city Ethics Commission, said, “The two agencies have been working on a number of money-laundering investigations for almost six months.”

This type of money laundering typically involves a contractor, developer, lobbyist or special interest group recruiting several donors and then reimbursing them in cash or payments disguised as bonuses, expenses or commissions. The practice conceals the amount of special interest money flowing into a campaign and sidesteps contribution limits.

In Los Angeles, contributions from a single source are limited to $500 per candidate in City Council races and $1,000 per candidate in mayoral and other citywide races.

Thus far, no evidence has surfaced that politicians who received suspect contributions--including Mayor Tom Bradley, several City Council members, county Supervisor Michael Antonovich and a few state elected officials--knew they may have been laundered.

Still, candidates often do know that the fund-raiser involved helped fill their campaign coffers. Campaign reform advocates believe this boosts the fund-raiser’s political influence.

Indeed, interviews by The Times indicate that several City Council members who received suspect contributions--including Ruth Galanter, Walters and Mark Ridley-Thomas--approached Snyder or Burke for fund-raising help, although they deny any knowledge of misconduct.

Court records filed Monday outline a series of examples of suspected money laundering, several of them involving Chi May Chen, the Snyder law firm employee.

Two contributors, Frank and Carol Wang, told investigators they made eight contributions at Chen’s request in 1990 and 1991 and were reimbursed each time, usually with cash, records show.

In several instances, the Wangs said they left the payee line blank on the check. The canceled checks later came back filled out to campaign committees for Councilmen Hal Bernson, Mike Hernandez or Mark Ridley-Thomas, records show. Carol Wang confirmed the reimbursements Tuesday.

Two other contributors recruited by Chen--Yu Ming Kuo and William Wong--also told investigators they provided checks for contributions totaling thousands of dollars and received cash reimbursements, the court records say.

Chen told the witnesses variously that her “boss” asked for the contributions, and that the reimbursement money was coming from her “boss,” records show.

Investigators also suspect some clients of Snyder are laundering political contributions, possibly at Snyder’s direction, the records indicate.

A former employee of Bell Cab, which Snyder’s firm has represented at City Hall, admitted to investigators that on a number of occasions he requested employees and stockholders to make contributions for which they were immediately reimbursed, the records state.

The employee, Bahman Azmoudeh, said the reason was to get around Los Angeles’s political contribution limits, the records indicate. Azmoudeh could not be reached for comment.

Bell Cab’s former bookkeeper, Michael Capone, said in 1990 he and several other employees were asked by Azmoudeh to make contributions--later reimbursed--to a City Council member as part of an effort to secure support for a lucrative permit to run cabs at LAX.

The court records indicate Capone was told by Azmoudeh that a City Council member requested the funds in exchange for assistance--a point disputed by Capone Tuesday. In an interview, Capone acknowledged reimbursements were made as Azmoudeh sought to raise $3,000 for a fund-raiser for Councilman Nate Holden.

But he said he had no indication Holden requested the contribution. “It was: ‘We have a chance to get our point of view enhanced on the airport question,’ ” Capone said. “(But) I have no idea who put that bug in (Azmoudeh’s) head.”

Holden said he was unaware that Bell Cab employees contributed to his fund-raiser, and he said such donations would not affect his actions anyway.

A current Bell Cab employee, operations manager Felix Offor, told investigators that he was reimbursed for several contributions and that Azmoudeh was directed by Snyder to collect contributions, the court records indicate. Offor confirmed in a brief interview that he was reimbursed for contributions by Bell Cab but said he did not link Snyder to the contributions.

As for the other Snyder client, the Broadway Trade Center, investigators suspect family members of one of the general partners in the firm--Amanollah Simantob--may have reimbursed campaign contributors. Bank records indicate two donors who gave a total of about $1,500 to Walters’ 1991 campaign received similar amounts within days from accounts of Simantob family members. One suspected reimbursement check was deposited a day after a contribution for precisely the same amount--$498, the records state.

On the same date as the $498 donation, eight additional contributions totaling $4,000 were made by Amanollah Simantob’s relatives to Walters’ campaign, the records indicate.

Simantob could not be reached for comment. Kevin Fiore, the Broadway Trade Center’s attorney, said he was not familiar with the contributions and could not comment. But, he said, if any contributions were made improperly, it was probably because the partners did not understand campaign regulations.