Posted on 10/04/2006 9:53:30 AM PDT by NormsRevenge
In the highest-reaching allegations so far in the City Hall "pay-to-play" scandal, a former deputy mayor in the Hahn administration said he indulged in sexual services paid for by a city commissioner who prosecutors said was seeking a contract for a client, according to court documents unsealed Tuesday.
The salacious revelations are among the most direct allegations in the nearly three-year investigation of contracting practices during the administration of former Mayor James Hahn.
According to some 1,200 pages of transcripts released Tuesday, former Deputy Mayor Troy Edwards told a grand jury that Leland Wong, then a member of the powerful Airport Commission, paid for the 90-minute, $130 massages.
Edwards testified that Wong continued to pay for the sessions even after he told the commissioner he had been sexually gratified by some of the masseuses, the documents show.
At the time, Edwards was Hahn's liaison to the city's Ports, Airports and Water and Power departments.
Prosecutors charge that the massages were part of a sustained effort by Wong in 2002 to win a favorable harbor lease for Evergreen Shipping, which paid Wong $100,000 for his efforts.
Wong, 49, of San Marino was indicted in August on 20 counts including bribery, conflict of interest, perjury and embezzlement in connection with the case. He has pleaded not guilty. Wong did not testify before the grand jury in August.
But in a statement issued Tuesday, Wong's attorneys denied that he had anything to do with Edwards receiving sexual favors.
"To say otherwise is outrageous," the statement said. "In fact, we expect the evidence at trial will show that Leland Wong operated lawfully at all times - both as an employee of Kaiser Permanente and as a public servant."
Wong's attorneys, Janet Levine and Jeffrey Rutherford, had asked that Edwards' testimony remain sealed, noting that none of the sexual acts described took place in Wong's presence nor at his direction.
"The testimony smacks of prostitution and illicit behavior and - although no evidence remotely indicates that Mr. Wong had any role in Mr. Edwards' sexual dalliances - it will certainly prejudice how any juror views Mr. Wong," they argued.
The case against Wong centers on charges that he got $100,000 from Evergreen Shipping while serving on the Airport Commission and voting on a contract for a subsidiary of the Taiwanese firm. Prosecutors say an Evergreen executive deposited $5,000 a month into a Hong Kong bank account for Wong.
Prosecutors say Wong did not reveal to Edwards or anyone else that he'd been hired by Evergreen, although Wong's lawyers said he disclosed the relationship on a city form in late 2002.
Wong also has denied all charges that he embezzled or attempted to embezzle thousands of dollars in cash and property from Kaiser Permanente while he worked as its Los Angeles director of government relations.
Ticket sales
Some of the charges accuse Wong of selling tickets to sporting events that had been purchased with Kaiser Permanente funds, then keeping the money for himself.
He also is charged with embezzling from Kaiser by paying for massages at the Bonaventure Club Fitness & Spa for himself and others, including Edwards and the late labor leader Miguel Contreras, according to court papers.
The spa is in the downtown Bonaventure Hotel, but is managed independently.
Free massages
In his testimony to grand jurors, Deputy District Attorney Max Huntsman said evidence suggested that Wong used Kaiser funds to curry favor with Edwards by financing the massages, even after Edwards described sexual activity during some of the sessions, the documents said.
Huntsman said Tuesday that the massages were a way for Wong to "smooth the way to exercise influence" over Edwards.
A Kaiser spokesman said Tuesday that the health group was "shocked" by Edwards' testimony.
"It's absolutely wrong and it definitely should not have happened if it did," said Kaiser spokesman Jim Anderson.
Edwards testified that he couldn't recall exactly what he had told Wong about the sex sessions, but that Wong was not shocked, according to the documents. Prosecutors said the massages continued until Edwards resigned as deputy mayor.
Edwards testified that the massages usually took place after he and Wong had dined or had a drink together, and that city business was discussed during the social outings.
"I think there was plenty of relaxing as friends, but, you know, I was pretty much interested in getting all my stuff done, so, you know, any chance I had, any opportunity I had to be able to work on some of this stuff, I would.
"So I'm sure that we had discussions about, you know, all of these issues and me trying to - it's probably me trying to ask him to help me do whatever it is that we were working on, including, you know, the issues with the port and the airport."
Edwards, who also testified before a state grand jury in January 2004, eventually resigned from the Mayor's Office. He could not be reached Tuesday for comment.
Evergreen spokeswoman Barbara Yeninas said she was unaware of the allegations about the massages, but that the company would never condone doing business in that manner.
A spokesman for the Bonaventure Hotel said the spa is managed and operated by a third party and that its manager reported no improprieties.
Prosecutors argued in court papers that the massages were part of a pattern of influence peddling in 2002 and 2003, when Edwards was working with Wong to encourage Evergreen's EVA Air to move cargo operations to Ontario Airport.
Prosecutors said that effort was linked to Wong's attempts to renegotiate Evergreen's port lease, for which Wong was being paid the $100,000.
Port lease
Prosecutors said an Evergreen official was assured by Wong that the payments were legal as long as the Airport Commission did not vote on the issue.
Prosecutors testified that by August 2002, negotiations regarding the EVA Air move to Ontario and the port contract were "explicitly linked."
"Wong advised Edwards to push the port to be `responsive' to Evergreen's issues because Evergreen had agreed to move airline service to Ontario," documents say.
While a memorandum of understanding was signed with Evergreen, the contract was never signed.
Hahn had been roundly criticized by City Hall insiders for putting the inexperienced Edwards - a campaign fundraiser in his 2001 campaign - in charge of three massive city departments that handled billions in contracts.
Hahn did not return calls for comment Tuesday.
Hahn testimony
In his testimony, Hahn told grand jurors that he had originally appointed Wong to the Airport Commission, but later moved him to the DWP board when Contreras sought the Airport post.
The former mayor said he thought it would be a good appointment because of Wong's experience on the Harbor Commission and his familiarity with port issues and environmental concerns.
Hahn acknowledged that another asset was Wong's relationships with Evergreen officials.
However, the former mayor testified he did not know Wong was being paid as an Evergreen consultant. Had he known, Hahn said, he would not have allowed him to be involved in any direct discussions.
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