Port Link to Chinese Firm Is Probed

As part of their investigation into contracting in Los Angeles city government, federal prosecutors are looking at the relationship between Los Angeles Port officials and a Shanghai-based marketing consultant.

In a subpoena served last month, the U.S. attorney demanded all employment documents, expense records, travel and entertainment accounts, and correspondence between port officials and William Wong, director of the firm Jade Peak International.

Jade Peak has had contracts to promote the port to Chinese businesses since 1998 for which it has been paid $567,000. The contracts were canceled last month.

About half of Jade Peak’s billings were for expenses, including costs associated with handling arrangements when Los Angeles officials visited China, sources said.

Federal and local prosecutors have been investigating city contracting for months amid accusations that city contracts may have been issued in exchange for campaign contributions. Federal officials have declined to comment on their investigation.

L.A. County Dist. Atty. Steve Cooley has said his office is probing whether some members of Mayor James K. Hahn’s administration traded favorable treatment during negotiations for political contributions.

In March, federal and local prosecutors began subpoenaing port officials, including Executive Director Larry Keller. Three members of the Harbor Commission -- Nicholas Tonsich, Thomas Warren and James Acevedo -- have also been called to testify before the federal grand jury, according to sources.

Last week, Bruce Seaton, the port’s chief operating officer, directed port employees to save all e-mails to or from Wong or Jade Peak.