FEDS SEEK HAHN E-MAILS 'PAY-TO-PLAY' INVESTIGATION WIDENS TO INCLUDE MAYOR AND AIDES.

Byline: Rick Orlov and James Nash Staff Writers

The federal investigation of ``pay-to-play'' accusations escalated to the highest levels of Los Angeles City Hall on Thursday with the disclosure of subpoenas of all electronic messages since 2001 from Mayor James Hahn and his top aides.

Following up on a warning several months ago to save all messages, Assistant U.S. Attorney Adam D. Kamenstein asked for all e-mails and other electronic messages by the mayor and his aides dating back to July 2, 2001, when Hahn took office.

Kamenstein said the government wanted to review all communications in the Mayor's Office as well as any other wireless devices used by Hahn or his aides.

The mayor's opponents seized on the subpoenas as evidence that allegations of wrongdoing in the Department of Water and Power and Department of Airports have led investigators to question the role of the mayor and top officials in his administration.

``This scandal has spread like a cancer from the DWP to the airport and now the highest offices of the city,'' said Councilman Antonio Villaraigosa, one of the major challengers to Hahn in next March's primary, adding that it was ``a sad day for the city of Los Angeles,'' which has prided itself for decades on being corruption-free.

Another challenger, state Sen. Richard Alarcon, D-Van Nuys, said: ``This shows the city needs new leadership. It seems as if the city is stuck in place and we need a mayor who will take action.''

Hahn personally put out the information about the subpoenas, saying he was fully cooperating and had ordered his staff to comply as well.

``I would be glad to respond and provide anything we can. If someone wants to look at my e-mail, they are certainly welcome to. We're interested in complying any way possible.

``Lengthy investigations that go unresolved don't do anyone any good.''

Federal and district attorney corruption investigations have been under way since as early as last fall, focusing on whether the Hahn administration or its appointees coerced airport or other contractors into making contributions to Hahn's campaigns for mayor and to fight San Fernando Valley secession.

Other allegations involving contracting practices at the Department of Water and Power and other agencies also have surfaced. Two major contributors have been charged with serious campaign-law violations and several Hahn aides and appointees have resigned under a cloud of suspicion.

The new federal subpoenas cover current staff members, including Chief of Staff Tim McOsker, Deputy Chief of Staff Nathalie Rayes, Deputy Mayor Doane Liu and Deputy Mayor Julie Wong.

E-mails also were sought from spokeswoman Shannon Murphy, policy analyst Wendy Wang and Hahn secretary Jean O'Malley.

Also covered were communications from former Deputy Mayors Troy Edwards and Matt Middlebrook. Edwards had been Hahn's liaison to the Airports Department and Middlebrook was his communications director. Both had played visible roles in the mayor's 2001 election.

In addition to the federal grand jury, a county grand jury is looking into the ``pay-to-play'' accusations first contained in an audit of Los Angeles World Airports by City Controller Laura Chick.

Chick had turned over information to District Attorney Steve Cooley, asking him to look into whether companies were being pressured to make contributions to Hahn or his political committees in return for winning city contracts at the airport department.

Chick also asked the federal government to look into the matter, and the inquiry was expanded to include the Harbor Department and Department of Water and Power and their contracting procedures. Hahn has convened a special panel to look at the issue and to make recommendations on possible changes.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com

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