Ethics charges urged against 6 L.A. airport agency officials

City ethics investigators have recommended that civil charges be brought against six current and former officials at Los Angeles World Airports who allegedly accepted thousands of dollars worth of discounted trips to China and New England from an association that represents dozens of international airlines that use LAX.

According to records obtained by The Times, the trips involved a weeklong cruise last year along the New England and Canadian coasts as well as a six-day excursion in 2005 to Beijing and Shanghai. The China trips featured stays in five-star hotels such as the Peninsula Beijing and the Ritz-Carlton Shanghai. And all of the outings included air travel, lodging, entertainment, tours, meals and cocktails.

The case, which involves 22 alleged violations of municipal code provisions that regulate gifts and travel received by city officials, names the airport agency’s top engineer, a former chief of planning, a former concessions manager and an assistant city attorney who worked on airport matters.

A property manager and an airport manager also were listed as well as LAX Terminal Equity Corp. or LAXTEC, an association that represents about 40 international airlines that operate out of the Tom Bradley International Terminal.

If the charges are sustained by the Los Angeles City Ethics Commission, LAXTEC and the officials could be fined as much as $5,000 per violation or three times the value of the gifts they accepted improperly.

Group’s conventions

The association represents the interests of its airlines before local, state and federal agencies and maintains facilities for members that are tenants at the Bradley terminal. The organization provided the trips at a discount to airport department officials so they could attend its 2005 and 2008 conventions.

“We believe that we have not violated any laws,” Leigh Hatayama, a former airport manager who went to China, said Tuesday. “These trips have been going on for 25 years. In the past, management has not advised us that we could not go on the trips.”

Commission investigators allege in case records that the officials violated municipal code sections that prohibit city employees from accepting more than $100 in gifts per year from an individual person, company or organization. They also cannot accept travel from any source that has city contracts or seeks to influence municipal legislation or administrative decisions.

LAXTEC was drawn into the investigation because the municipal code forbids individuals, companies and organizations with city contracts or interests pending before municipal agencies to offer or provide city employees with travel and gifts worth more than $100 per year.

At the time of the trips, LAXTEC had three airport contracts, including a lease for a VIP lounge at the Bradley terminal, an agreement to operate ground equipment there, and a $7.7-million reimbursement contract to modify gates at LAX to accommodate the giant Airbus A380.

In addition to Hatayama, the officials named in the case are Eduardo Angeles, an assistant city attorney who worked in the airport division; Ronald Domash, a property manager; Intissar Durham, a chief engineer; Karen Tozer, a former concessions manager; and Warren Richard Wells, a former chief of planning.

Wells and Hatayama have since retired; Tozer has been reassigned to other duties. Angeles is now City Council liaison for the city attorney.

Angeles, Domash and Frank Clark, LAXTEC’s executive director, declined to comment Tuesday. Durham, Tozer and Wells could not be reached.

According to case records, five city officials paid $1,899 per person to go on the China trip and $599 for the New England cruise. Durham paid $2,774 for the China trip, an extra $875 for a private hotel room.

But investigators stated that they still received gifts worth $1,124.46 per person during the China trip and at least $434 per person during the New England cruise, which included one night at the Renaissance Boston Waterfront Hotel.

Angeles, who took his wife on the China trip, paid $3,998 or $1,999 per person, which included $100 apiece for a side trip to the Philippines. Investigators allege that he received gifts valued at $2,249 because his wife accompanied him.

Wells also took his wife on both the China and New England trips. According to case records, he accepted a total of $3,509 in gifts while attending both conventions with his spouse. In addition, Tozer paid $1,199 for her and a friend to go on the New England cruise. Investigators allege she received gifts valued at almost $1,270.

The records reflect that LAXTEC officials defended themselves, saying that the fees Los Angeles World Airports officials paid for the trips were commensurate with what a tour operator or charter company might have charged them for the same travel.

Complaint received

The investigation began after the management at Los Angeles World Airports received a complaint in October 2008 related to the trips. Gina Marie Lindsey, the agency’s executive director, then referred the matter to the Ethics Commission.

According to case records, the commission gave LAXTEC and the officials until Nov. 30 to respond in writing to an investigators’ report, which recommended that charges be filed. In lieu of a written answer, they can request a conference to discuss the matter.

Hatayama said the officials named in the report have requested a hearing, but it has not been scheduled.

Based on the investigation and the responses, the commission’s executive director, LeeAnn Pelham, can decide to drop the case or initiate an enforcement action. Commission officials declined to comment, saying they cannot discuss any investigation until formal accusations are filed.

dan.weikel@latimes.com