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Alatorre, shown here with Mexican consul general Pescador Osuna, is under investigation. |
AP.state (12-15) 03:05:07
LOS ANGELES (AP) -- City Councilman Richard Alatorre's two sons have been called to testify before a federal grand jury investigating tens of thousands of dollars he used for a down payment on a house. The panel, part of a larger corruption probe directed by the U.S. attorney in Los Angeles, also has summoned another Alatorre relative who, in 1996, helped finance a $30,000 down payment for a $253,000 Eagle Rock home.
Retired relative Frank E. Mendoza, 62, gave Alatorre $7,200. Derrick Alatorre gave his father $5,000 in cash. Darrell Alatorre provided a $7,200 cashier's check but days later fell behind on a $40,000 business loan. At issue is whether Alatorre, through his family, got help from political allies who have gained contracts from the city and the Metropolitan Transportation Authority, the Los Angeles Times reported today. Also under subpoena are contractors across the country.
The FBI, Internal Revenue Service and MTA inspector general's office are participating in the federal grand jury probe. Lawyer Andy M. Camacho, a longtime friend of the councilman, wrote letters to assure Coast Federal Savings that they should loan Alatorre the money for the Eagle Rock home. Three days later, the bank gave the councilman the loan.
``The purpose of this letter is to verify that I did retain the services of Mr. Darrell Alatorre and Mr. Derrick Alatorre for consultation for my restaurant operation,'' Camacho wrote. Camacho said he had paid Darrell Alatorre a $10,000 fee for helping develop his El Paseo Cafe at Los Angeles International Airport. He had paid Derrick Alatorre $8,000 for help at his Universal Studios CityWalk and Santa Monica Pier restaurants, Camacho wrote. At the time of Alatorre's house deal, Camacho had a stake in the development of the city's historic Pueblo de Los Angeles at Olvera Street downtown, partly because of action taken by the councilman. About the time Alatorre began looking for a new house, he also pushed ahead a city agreement involving one of Camacho's Olvera Street interests -- a deal that critics complained put the city and other companies at a disadvantage.
Federal authorities also are examining work on Alatorre's home, financed by the East Los Angeles Community Union, a prominent developer and contractor seeking millions of dollars in MTA and city deals backed by Alatorre.