Probers Seek Political Contribution Data : Investigation: Money-laundering inquiry by the state and city continues. Focus is on networks that may have passed along tens of thousands of dollars in campaign donations.

Investigators probing allegations of campaign money-laundering in Los Angeles are seeking records related to an array of state and local contributors with ties to the apparent targets of the investigations--former Councilman Art Snyder and employees of the L.A. Marathon, according to court documents and interviews.

The records being sought relate to such major campaign contributors as Watt Industries, a huge Santa Monica-based developer, and the Bell Cab Co., which operates throughout much of Los Angeles, as well as the owner of a Tarzana medical management firm.

Details of the investigation by the state Fair Political Practices Commission and the city of Los Angeles’ Ethics Commission remain sketchy. Although the records contain no evidence that these contributors are suspected of wrongdoing, it appears that investigators are trying to piece together a complex web of financial transactions and campaign donations that branches across the city.

The probe is focusing on two networks that are suspected of funneling tens of thousands of dollars in apparently illegal contributions to a long list of state and local politicians, including Mayor Tom Bradley and most members of the City Council.

An attorney for Snyder said his client has done nothing wrong. William A. Burke, president of the Los Angeles Marathon, said he knew of no laundered contributions and believes that the inquiry will find no wrongdoing at his firm.

Investigators appear interested in the activities of friends, relatives, employees and business associates of Snyder and a former top aide to Burke. Records indicate that Snyder and the former Burke aide may have been part of separate plans to conceal the true source of campaign donations. Such practices violate state and local laws.

The existence of the investigations, disclosed Friday by The Times, shook elected officials at City Hall, several of whom said they will review their campaign files for suspect donations. At this point, there is no evidence that these officials knew of the allegedly illegal contributions.

Records indicate that investigators suspect that Snyder and employees of the marathon were involved in a plan to recruit contributors who would make donations to favored candidates and reimburse them for the donations.

Although the candidates may be unaware of the true source of the contributions, they may know that the fund-raisers behind the scheme are responsible for bringing large sums to their campaigns. Many believe this increases the fund-raisers’ political influence.

One subpoena to Snyder’s law firm seeks documents relating to all payments to or from Watt Industries, its employees and stockholders. The firm, whose political action committee has contributed tens of thousands of dollars to local campaigns in recent years, was represented by Snyder in a long, unsuccessful drive to develop a $200-million hotel-office complex near Cal State Northridge.

Similar records are being sought from Snyder’s law firm for Bell Cab Co., which has made about $20,000 in contributions to local officials in recent years. Synder represents the firm and helped it obtain a franchise in 1987.

Spokesman for Bell Cab and Watt Industries said they knew little about the probes and were unaware if the firms had been served with subpoenas.

Kimberly Carey, president of Tarzana-based Medical Management Alliance Inc., said she had been subpoenaed by investigators to answer questions and produce canceled checks. She said Burke and George Beasley, the former Burke aide at the center of the probe, are longtime family friends. Employees of the L.A. Marathon allege that Beasley told them to write checks to candidates and then reimbursed them, records show.

Court records show that investigators are interested in a similar pattern of activity involving a former employee at Medical Management Alliance. The employee received a $500 check from Beasley’s firm and then immediately made a $500 donation to Oakland Mayor Elihu Harris, according to the records.

Beasley has declined to comment and his lawyer has been unavailable.

Carey said she knew of no improper donations.

News of the investigation sent council members and their aides scurrying to filing cabinets and computers Friday to check for contributions linked to Snyder or marathon officials.

“All I can tell you is that if any of the money we got was illegal, we will give it back,” said Councilwoman Ruth Galanter, who had not yet scrutinized her records.

Rumors of a major ethics investigation had been making the rounds at City Hall, but council members said it was only Friday that they learned the targets of the probe through the report in The Times.

Galanter said she was asked by the Ethics Commission staff several months ago to turn over campaign contribution records. “They said: ‘We don’t think you have done anything wrong,’ ” Galanter said, “ ‘but we’ve had a tip about money-laundering by contributors. . . . They wouldn’t say who.’ ”

Council members deplored efforts to hide the true source of campaign contributions, but most added that there is little they can do to screen contributions.

“I don’t think we examine our contributors that closely and maybe we should,” said council President John Ferraro. “I just know I’m running for office and I need money and someone is willing to help me.

“People will come to you and say they will raise $20,000 for you,” Ferraro added. “That kind of thing happens all the time. And then they go to their gardener or dry cleaner and get them to give money.

“You have to have fund raisers and you are happy to have them at someone’s home. You can’t then turn around and interrogate someone who has made you a kind and generous offer, can you?”

Another City Hall official said it is not uncommon for big donors to promise to fill tables at fund-raising dinners. “But when they come to the dinner,” the source said, “they are not bringing the people, they are bringing an envelope with checks in it.”

Mark Fabiani, the mayor’s chief of staff, said campaign bookkeepers are under instructions to ferret out contributions that might be “coerced or arranged.”

“When mid-level employees or lower contribute a lot of money, then it’s incumbent on you to ask some more questions,” Fabiani said.

With the recession impairing fund raising, many elected officials privately concede that it is difficult to look their gift horses in the mouth. “It’s kind of awkward to say: “Hey, Art (Snyder), how many relatives does your wife have and are you reimbursing them for their contributions?” said a council member, who asked not to be named.

In any case, officials agree that the investigation cannot help the image of City Hall.

“It clouds public confidence,” said Councilman Mark Ridley-Thomas. “They think it’s just a bunch of wheelers and dealers involved here. That is not what we need now.”