$171,000 Agnos Profit on Land Deals Set Up by Probe Figure Told

SACRAMENTO —  Assemblyman Art Agnos, a candidate for mayor of San Francisco, reportedly has made $171,000 profit on two land deals that were arranged by a Sacramento developer named in a political corruption case.

Agnos, who last week reportedly admitted that he did not pay income taxes on $65,000 in proceeds from one of the deals, said he sold his remaining interest in the investments last December so that questions about them would not be raised in his mayoral campaign.

Details of the transactions were first reported in the San Francisco Chronicle. The paper said Agnos failed to report the $65,000 in income to the Internal Revenue Service and the state Franchise Tax Board until two months ago, after the paper confronted him with questions about the land deals.

Called an Oversight

Agnos, a Democrat, said it was an oversight and he paid $14,000 in delinquent state and federal taxes in April.

In both cases, the deals reportedly were arranged by Sacramento developer Angelo Tsakopoulos, who has figured prominently in a Fair Political Practices Commission investigation.

Tsakopoulos, whom Agnos called his best friend, was named as the source of $250,000 in loans to William Bryan, a former Sacramento County supervisor. Bryan was charged in an FPPC suit with voting to rezone Tsakopoulos land in exchange for the money.

The tax controversy that Agnos acknowledged involved a 25% interest in 30 acres of south Sacramento County land that he reportedly acquired in 1978 with a $5,000 loan from Tsakopoulos. Agnos reportedly sold the property in 1983 for $65,000 to George Tsakopoulos, Angelo’s brother, just as it was about to be developed.

Agnos’ second land deal involving Tsakopoulos began in 1979 with a $58,000 investment in a partnership called Pirgos, according to Stanley Foondos, a Sacramento accountant who prepares the assemblyman’s campaign reports.

Sold Out at Profit

Agnos eventually sold his interests in both land deals and realized $409,130 in capital gains, according to Foondos, and his after-tax profits were reported to be $171,230.

Agnos said he cashed out of the remaining deal because he did not want to have any “outside investments” while running for mayor.

“If I were not a candidate I would still have those investments,” Agnos said. “There is absolutely nothing wrong with those investments I sold off. It was simply a political decision so they would not be used by my opponents.”

He said that strategy may have backfired when the Chronicle detailed the investments. But Agnos expressed confidence that the damage to his campaign would be temporary.

Source of Controversy

The relationship between Agnos and Tsakopoulos generated controversy as far back as 1981, when it was disclosed that Agnos and state Sen. Nicholas C. Petris (D-Oakland) were pushing legislation that could have benefited Tsakopoulos. The legislation was aimed at helping all developers of low and moderate income housing overcome lawsuits.