Seattle police investigated for alleged business favors

Seattle police internal investigators have questioned employees of a waterfront hotel and a Belltown restaurant as part of an inquiry into allegations that officers accepted discounted room rates and free meals and drinks.

In exchange for the favors, the officers allegedly helped the businesses handle disturbances without calling 911.

Although officers are allowed to handle some situations informally, not calling 911 can make it appear that a business is receiving special treatment, sometimes to avoid being labeled a trouble spot. It also can place officers in danger because dispatchers don't know where they are, and it can skew crime statistics used to make staffing decisions.

The inquiry into the favors is part of a broader investigation — first by the FBI and then within the department — into alleged drug use and other misconduct by officers who worked in the Belltown area.

In that larger investigation, Seattle Police Chief Gil Kerlikowske will soon decide the fates of at least one officer and two sergeants. Others in the department are closely watching the investigation to see what actions Kerlikowske will take, said department sources who asked that their names not be used to protect their jobs.

Those sources said internal investigators, based on interviews with witnesses, have told superiors they believe there is evidence officers received favorable treatment in violation of department policy.

A Seattle police internal investigator questioned staff at The Edgewater hotel about whether discounted rooms were provided to officers at the Elliott Bay establishment, said Karl Kruger, the hotel's general manager.

Kruger said he was "not at liberty to discuss their investigation" and that he had no personal knowledge of officers negotiating special rates with the hotel.

Kruger said rates at the hotel fluctuate depending on the day of the week and the demand for rooms. He said he knew of no reason to change hotel policies as a result of what he knew about the police inquiry.

One Police Department source said Seattle Officer John Powers, who is at the center of the misconduct investigation, developed a friendly relationship with an Edgewater employee.

Powers helped the hotel employee deal with problems without having to call 911, that source said, speaking on condition of anonymity.

In turn, the employee helped Powers obtain discounted rates on rooms used by another officer who was having an extramarital relationship, the source said.

Kruger said "no comment" when asked if the internal investigator raised those specific matters.

"It's not my issue," he added, hanging up the telephone.

Investigators are looking at whether similar relationships existed at other establishments in Belltown and near Pike Place Market. Under department policies, officers are barred from accepting gifts or discounts because that could put them in compromising positions.

Bernie Spring, general manager of Axis restaurant and bar in Belltown, said he was questioned by investigators recently about whether his business provided free meals or drinks to Powers and Sgt. James Arata, another figure in the misconduct investigation.

Spring told The Seattle Times he may have offered free meals to Powers and Arata, but they turned him down. He said he had called Powers on his cellphone on occasion to deal with problems that didn't require a 911 call, such as drunken behavior.

"He's a master of defusing a situation," Spring said.

Internal investigators also are looking into an allegation that officers have accepted free or discounted meals at Cutters Bayhouse restaurant near Pike Place Market.

Investigators contacted the restaurant's parent company, Restaurants Unlimited, said Will Powers, a spokesman for the company. He is not related to John Powers.

Will Powers said a company lawyer had told investigators that employees have the option of offering free or discounted meals to honored guests. But Powers said he had no specific information that police officers benefited from that policy.

A Port of Seattle officer had told investigators he was offered a free meal at Cutters but turned it down, two people familiar with the matter said.

John Powers and Arata have been told by the department to not publicly discuss the investigation.

Powers, an eight-year veteran of the police force, was notified several weeks ago that the department had tentatively decided to fire him pending a final appeal to the chief.

Department sources said internal investigators have concluded Powers used and distributed cocaine, left his patrol area to give rides to women with whom he had romantic relationships, and illegally shared a prescription drug, the erectile-dysfunction drug Viagra, with other officers.

He also has been found to have lied on his job application about drug use before he joined the department, and to have consorted with people with criminal backgrounds. He allegedly gave a friend details from a confidential federal database about a criminal investigation involving the friend's relative, the sources said.

All those findings are subject to final review by Kerlikowske, who has the ultimate say on discipline.

Powers has been on paid leave since last November, when the department took him off regular duties. He is scheduled to meet with Kerlikowske this week, according to sources familiar with the matter.

Arata, who joined the department in 1988, has been accused of jokingly referring to a subordinate as a "rat" for talking to the FBI.

Kerlikowske tentatively decided in August to demote Arata. But after meeting with Arata and requiring the officer who had been the target of the comment to make a second statement, Kerlikowske is reconsidering his decision, sources said.

Arata, who has denied making the comment, is also under investigation for other alleged misconduct, including failure to supervise Powers.

A second sergeant is also facing discipline, and Powers' onetime partner resigned from the department earlier this year while under investigation.

The internal inquiries followed a four-year investigation by the FBI's Public Integrity Task Force in Seattle, which looked into allegations that officers used illegal drugs, spent work time on personal activities or associated with criminals. The task force also examined whether officers overlooked illegal drug use and liquor violations while working off-duty as security guards for nightclubs in Belltown and Pioneer Square.

No criminal charges were brought, but the FBI turned over its information to Seattle police internal investigators earlier this year for possible administrative action.

Steve Miletich: 206-464-3302 or smiletich@seattletimes.com