Taxi Firm Agrees to $40,000 Ethics Fine : Investigation: Bell Cab admitted 54 counts of laundering donations to City Council candidates. Commission is to consider settlement today.

A Los Angeles cab company has agreed to pay a $40,000 fine for making improper campaign contributions totaling $10,500 to City Council members and candidates in 1990 and 1991, according to documents released Tuesday.

Bell Cab Co., which operates across large areas of central and western Los Angeles, admitted 54 counts of campaign money laundering and violating political contribution limits as part of a proposed legal settlement with city ethics officials.

The settlement is expected to be considered today at a special meeting of the Los Angeles Ethics Commission.

Bell Cab officials did not respond to requests for comment on Tuesday. Ben Bycel, the Ethics Commission executive director, refused to discuss the matter before today’s meeting.

However, in a statement issued to the commission, city ethics officials said that Bell’s action was “deliberate and intentional.”

“It allows the concealment from the public of the true source of political contributions and the circumvention of the campaign contribution limitations enacted by the voters of the city of Los Angeles,” the statement said.

Investigators found that Bell Cab, which has been involved in franchise battles at City Hall, funneled improper contributions in 1990 and 1991 to council members Hal Bernson, Ruth Galanter, Mike Hernandez, Mark Ridley-Thomas, Rita Walters and Michael Woo, as well as to two unsuccessful council candidates. None of the recipients is accused of wrongdoing.

The contributions coincided with the firm’s effort to obtain a lucrative city permit to operate at Los Angeles International Airport. In July, 1990, the council decided in Bell Cab’s favor.

Former company President Bahman Azmoudeh later admitted that on several occasions he asked employees and stockholders of Bell Cab to make campaign contributions, which the company then immediately reimbursed, according to the city’s investigation.

City Council candidates are permitted to receive $500 donations from each individual or entity per election. The laundering operation allowed Bell to pour hundreds of dollars more into the campaign accounts of the council members and candidates, investigators contend.

The largest amount went to Ridley-Thomas, who received five contributions of $500 each. The second-highest recipient was Hernandez, who received four $500 contributions.

“I was disappointed to hear that something like this happened,” Hernandez said. “I plan to return the money immediately.”

The accusations against Bell Cab arose in 1993 during an investigation of campaign money laundering involving former Councilman Arthur K. Snyder, a prominent lobbyist whose law firm represents the cab company at City Hall. Snyder, however, had denied any wrongdoing and was not named in the settlement agreement released Tuesday. His attorney, Mark J. Geragos, said he has seen no evidence linking Snyder to improper contributions.

“He had nothing to do with this,” Geragos said. “The evidence shows he always advised them they should not do things like this.”