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Former Los Angeles City Councilman Martin Ludlow is considering stepping down as head of an influential and politically active labor group and is weighing a plea bargain with prosecutors investigating the alleged misuse of union money in his 2003 campaign for the council, associates and sources said Thursday.
Union officials seemed stunned as word circulated that Ludlow might face criminal charges. Only last summer, he resigned his council post to became executive secretary-treasurer -- the top staff position -- of the powerful Los Angeles County Federation of Labor upon the sudden death of his union mentor, Miguel Contreras.
"I'm just devastated," said Rick Icaza, federation president. "We're going to have to have an emergency meeting to appoint a successor."
For weeks federal and state authorities have been questioning union officials about whether Ludlow's campaign received illegal union assistance.
If Ludlow accepts the plea offer, sources said, he might avoid jail but face a heavy fine and be banned from public office or union posts for at least 10 years.
A plea bargain would also mark a substantial downfall for the energetic, articulate, 41-year-old, who local labor leaders hoped would fill a void left by the death of Contreras, long a prominent player in Los Angeles politics. The federation represents 354 unions with a membership totaling 825,000.
Icaza said other union board members told him Thursday that Ludlow planned to take a leave as he deals with a joint investigation by the U.S. attorney, the district attorney and the city Ethics Commission.
Ludlow avoided reporters seeking comment when he appeared at an afternoon rally for downtown hotel workers.
However, earlier in the day union leaders throughout Southern California received a terse letter from him.
"It's been brought to my attention there are rumors circulating regarding the investigation into my 2003 City Council campaign," Ludlow wrote. "As a policy, the Los Angeles County Federation of Labor will not comment on pending investigations of an affiliate. Any investigation into any campaign, including my own, will receive my full cooperation."
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