PROBE TARGETS STATE LIQUOR-ENFORCEMENT AGENTS; RACISM, EXTORTION, BIAS ALLEGED

The State Patrol and FBI are investigating allegations of corruption,
including conflicts of interest, extortion and racism, involving state
liquor-enforcement agents.

The State Patrol began a widespread probe a week ago at the request of
the state Liquor Control Board, Patrol Capt. Eric Robertson said
yesterday. He said the FBI had been conducting a separate, more narrow
investigation "for quite some time," but would not elaborate.

An FBI spokesman declined to comment.

Liquor Control Board Chairman Eugene Prince said he asked the State
Patrol to conduct a thorough review of the 87 agents who inspect
Washington bars, restaurants and stores that sell liquor and to make
recommendations to the board on liquor licenses.

"We're attempting to be honest," said Prince, a former legislator
named to the three-person board in January. The agents "are a good
group, but you never know."

Several agents declined to talk about the investigations, referring
calls to board officials.

The state investigation comes in response to mounting pressure from
licensees, lawmakers and neighborhood groups, who have complained in
legislative hearings and elsewhere about rumors of shakedowns, racism
and other corruption among agents.

The Pioneer Square community in Seattle is particularly upset because
the board recently renewed a market's liquor license despite repeated
violations. Some community leaders suspect the store received special
treatment.

In Olympia, one of the board's most vocal critics is state Rep.
Christopher Hurst, D-Enumclaw. He says agents have "critical problems"
with conflicts of interest.

"I have questions in general about the overlap between the agents'
permitting and law-enforcement functions," he said. "Is there an
overlap, and is it healthy?"

Hurst's chief complaint stems from a 1997 incident in which an agent
in Federal Way was accused of taking $5,000 from a nightclub he
regulated to pay for a lawsuit he had filed against the city of
Federal Way.

That agent was eventually fired for other reasons.

Liquor agents also have been accused of racism in dealing with Oscar's
II, a black-owned Seattle nightclub that was closed after police set
up a drug sting there.

In addition, the board has fielded complaints from Korean grocers who
say racism is behind lengthy delays in processing their license
applications.

In Pioneer Square, the community council has been trying to control
liquor sales at a small convenience store that carries cheap beer and
wine often purchased by chronic street drinkers.

The Seattle Police Department asked the agency not to renew the
store's liquor license, citing a severe impact caused by selling
alcohol to intoxicated people and the store's toleration of illegal
drug activity.

Last month the license was renewed anyway.

"This neighborhood spent thousands of hours on this issue, and it
seemed like a waste of time," said David Brunner, first vice president
of the Pioneer Square Community Council. "I'm not one of those folks
that believes there's a conspiracy, but it's looking like it -
buy-offs, payoffs and back-room dealing."

The board also has received complaints about a Seattle agent who
received $2,000 for doing some upholstery work for the owner of a
Pioneer Square bar. The bar's liquor license was renewed shortly thereafter.

Liquor-board officials said the renewal had nothing to do with the
agents' "outside work," but the incident could have created the
appearance of an improper relationship, said board spokeswoman Gigi
Zenk.

Colin Clifford, who manages Jersey's All American Sports Bar in
downtown Seattle, welcomed the State Patrol investigation.

"It's hard to believe there are flat-out shakedowns, but some of the
activity by agents is outrageous," said Clifford. He and his brother,
Chris Clifford, are frequent and vocal critics of the liquor board.

But some lawmakers questioned how much good could come of the state
probe, since the board notified all agents about it three weeks ago.

"Some people, I guess, think it was wrong to tell them," said Prince,
the board chairman. "We felt we had to let them know for morale
purposes. Rumors fly so fast, it would have been impossible to keep it
quiet."

Legislators plan to establish a committee this summer to study the
board's enforcement practices and structure. Gov. Gary Locke and
liquor-board members asked the Legislature to approve a bill this
session that would have reorganized the agency under a single director.

The measure appears to be dead.

But Rep. Jim Clements, R-Selah, Yakima County, said the board needs
more than just a "reshuffling."

"That won't resolve these types of issues that were brought to our
attention - the racism and extortion," he said.