Because of those races, Cooley and Atty. Gen. Jerry Brown probably would stay away from a Delgadillo investigation to avoid the appearance of a political conflict of interest.
So would the U.S. attorney in Los Angeles, whose office works closely with Delgadillo on such issues as gang prosecutions.
The city attorney, like all elected city officials, is required by law to declare his wife's income in annual financial disclosure statements.
Michelle Delgadillo's business dealings came to light after her husband acknowledged last year that she had been involved in a parking garage accident that damaged a city car. Delgadillo also confirmed that office employees ran personal errands for him and served as baby-sitters for his two sons. But he said those services were provided on the employees' own time.
"Everything was completely aboveboard," Velasquez said.
C.R.D. applied for a city tax registration certificate last year, after Delgadillo was questioned by The Times, and a Franchise Tax Board spokesman said the state tax matters had been resolved although the business remains "suspended" from operating.
C.R.D. Inc. generated between $10,000 and $100,000 a year from 2002 to 2005, according to the financial disclosure forms that the city attorney is required to file under state law.
On such forms, an elected official must report only a general range of his spouse's income. C.R.D. Inc.'s income in 2007 was listed as "0" on Delgadillo's most recent filing.
In addition to California Litho-Arts and Diane Castano-Sallee & Associates, C.R.D.'s clients included Bali Construction, Crossroads Services Inc. and Luster National, according to disclosure documents and information provided by the city attorney's aides.
Representatives for Bali Construction and Luster National said they had no knowledge of any federal inquiry. The owner of Crossroads Services Inc. indicated that she had been contacted by other media representatives and said: "Call my lawyer."
Then she declined to provide her attorney's name.
--
phil.willon@latimes.com
david.zahniser@latimes.com
Contributing to this report were Times staff writers Scott Glover, Matt Lait, Jack Leonard and Robert Lopez.
