Grand Jury Summons Moorpark Councilman : Probe: Officials of large trash firm are also ordered to appear. Action marks crucial stage of inquiry into payments to Scott Montgomery.

Moorpark City Councilman Scott Montgomery and key officials in eastern Ventura County’s largest trash company were ordered Wednesday to appear before the Ventura County grand jury as part of an ongoing probe into the councilman’s dealings with the firm, The Times has learned.

The subpoenas to appear before the grand jury next week mark the final and crucial stage in a 10-month probe into payments made to Montgomery by officials from G.I. Industries, which is operated by members of the Asadurian family of Moorpark.

Montgomery was served with a subpoena signed by Deputy Dist. Atty. Mark Aveis while at work Wednesday, said his attorney, Dan Schmidt.

“I think that we’re all talking about the same subject matter,” Schmidt said. “The subpoenas have to do with the business transactions between Scott and G.I. Sweeping in Simi Valley, which is not a Moorpark business and has no business ties to Moorpark, and the transaction happened more than two years ago.”

Schmidt said he believed the grand jury inquiry will deal with a $3,500 payment Montgomery received in 1993 from G.I. Sweeping, a company run by Manuel Asadurian Sr., who also served as the chief executive of G.I. Industries at the time.

With exclusive contracts in Simi Valley, Thousand Oaks and Moorpark, G.I. Industries picks up trash for about 40,000 Ventura County residents and has gross revenues of about $19 million a year.

When Montgomery received the $3,500 payment, he was operating Eagle Systems, a computer and financial consulting firm, out of his Moorpark home, and was delivering newspapers for the Ventura County Star-Free Press. He now works as a sales manager for a Chatsworth photocopier equipment company.

While Montgomery says the $3,500 was a payment for a computer and software he sold to the company, Asadurian continues to insist that the payment was a short-term loan.

Since giving Montgomery the money, Asadurian has said that he sent the councilman two letters asking for its return. Montgomery denies receiving any such letters.

Attorney Schmidt said he believes the grand jury inquiry would also include questions about a $12,000 payment Montgomery received in 1992 from G.I. Equipment Leasing, a former subsidiary of G.I. Industries, which is run by Asadurian’s son, Manuel Jr.

Schmidt said there has very likely been a misunderstanding about the payments, which will be cleared up during the grand jury probe.

“Manny, and some of the other folks over there are misinformed or forgetful or have other motives and don’t recall the details,” Schmidt said. “And that is the source of confusion now.”

State law requires city council members to disclose any financial interest with a firm doing business before the council. It also requires candidates to disclose statements of financial interest when they seek office.

Montgomery never reported any of the transactions on campaign financial disclosure documents, despite running for reelection in 1992, and running an unsuccessful campaign in 1994 for a seat on the County Board of Supervisors, records show.

During the three-year period in which he received the money, City Council minutes show that Montgomery voted on city trash contract changes or rate increases for G.I. Industries. At the same time, he served as chairman and vice chairman of the Ventura County Waste Commission.

But Schmidt said the payments Montgomery received do not amount to a conflict of interest.

“The government code does not require a public official to take a vow of poverty, although it sometimes turns out that way,” Schmidt said. “A public official is still allowed to go about their private business just as they could as ordinary citizens. The only time that business becomes an issue is if it conflicts with their duties as a public servant.”

Schmidt reiterated that there has been no conflict of interest with his client, insisting that the companies Montgomery received money from were not connected to G.I. Industries and that the payments were received long before Montgomery voted on trash contracts with G.I.

Also served with subpoenas on Wednesday were former G.I. chief executive officer Manuel Asadurian Sr., who now serves on the the company’s board of directors and works as a special consultant to the firm; Michael Smith, the company’s present CEO, who has said he received the call from Montgomery asking for the loan, and Kathy Hawley, an executive secretary with the firm, Smith said.

Smith said he and the other G.I. officials plan to fully cooperate with district attorney investigators and the grand jury.

“We’ll be there and we’ll continue to say it was a loan,” Smith said.

At a Moorpark City Council meeting Wednesday night, the council was scheduled to extend its contract with G.I. for 30 additional days, while it looks into reports that G.I. may be put up for sale.