Lobby Firm Moves Fast to Retain Clients After Scandal : Capitol: Partners of powerful advocate Clayton R. Jackson put a survival plan in place before he was indicted on corruption charges. So far, the strategy appears to be paying off.

By MARK GLADSTONE

March 14, 1993 12 AM PT

TIMES STAFF WRITER

SACRAMENTO — Even before the ink was dry on last month’s political corruption indictment of powerful lobbyist Clayton R. Jackson, his partners had printed up new letterhead stationery without Jackson’s name.

The stationery was used to quickly announce formation of a new firm--part of a coordinated plan of attack to keep clients from leaving because of the possible taint of scandal.

Although the point of the tactic was to distance the lobbying partnership from Jackson, Jackson was involved in discussions to shape the survival strategy, said Ralph A. Heim, president of the reincarnated firm.

Within minutes of U.S. Atty. George O’Connell’s news conference announcing Jackson’s indictment on racketeering, mail fraud and money-laundering charges, Heim and his partners put their plan into motion to stop any potential flight of their blue-chip clients.

Even though it was a late Friday afternoon, when the Capitol is typically filled with more tourists than legislators, the partners took the unusual step of hand delivering announcements to lawmakers to herald the formation of their Jackson-less firm. Similar releases were distributed to the press corps.

Thus, SRJ Jackson, Barish & Associates became Heim, Noack & Spahn.

The aim of the plan was to reassure potentially jittery clients, including such corporate heavyweights as Shell Oil, Anheuser-Busch and B.F. Goodrich. The clients paid the firm $2.1 million last year, making it the second-biggest moneymaker among lobbying operations, according to state records.

“In a business like this, you have to plan for contingencies,” Heim said. “It was in the best interests of our clients to have a plan put in place.”

Heim said that during the past year Jackson, who had helped found the old firm, was involved in strategy discussions. Jackson is no longer associated with the management of the new firm, and his majority interest in the old firm is being bought out, Heim said.

A number of Capitol lobbyists--none of whom would speak on the record--agreed with Heim that the taint of scandal could easily prompt a client to drop a lobbyist. In the corridors of the Capitol and local watering holes, they say there has been plenty of talk about ways to woo Jackson’s top clients.

Heim said he has heard rumors for months that rival advocates were not waiting for an indictment to begin courting Jackson’s high-profile clients. Heim said that such appeals--if true--would violate a commandment among lobbyists in Sacramento: Thou shall not solicit business from another lobbyist’s clients.

Heim said the firm’s strategy began taking shape in late 1991--after former state Sen. Alan Robbins (D-Van Nuys) pleaded guilty to a variety of corruption charges and implicated Jackson. Jackson’s offices were searched by IRS and FBI agents, who carted away computers and boxes of records.

Knowing that Jackson was the target of a federal grand jury, his partners began to regularly brief their clients--by phone or mail--about the pending federal investigation.

Heim said he believes that Jackson, who will maintain a legal and consulting business through his San Francisco law firm, will be exonerated of the charges. Donald Heller, Jackson’s lawyer, said his client will plead not guilty at his arraignment, set for Tuesday.

The new firm’s strategy to retain clients seems to be paying off.

The firm’s highest-paying client, the American Insurance Assn., which last year shelled out $477,000 in fees, is not leaving the fold. Wayne Wilson, the group’s Sacramento-based vice president, explained the group’s decision in this way: “Clay was a strategist and fireman for major problems, but most of the major day-to-day work and lifting was done by the folks who are there . . . and their ability has not been impaired.”

Richard Wiebe, the group’s public affairs director, said he did not know how the group would have reacted had Jackson remained a partner in the firm.

Among Jackson’s clients, Anheuser-Busch, which paid the firm $115,590 last year, is particularly attractive to other lobbyists, in part because it is a well-regarded national company.

Thomas Aldrich, the brewer’s corporate representative in Sacramento, refused to comment on whether other lobbying firms have been courting Anheuser-Busch but said a contract with the new firm had not yet been signed.

Asked about the possible loss of such a heavyweight client, Heim said: “If anyone anticipates they’ll get Anheuser-Busch away from us, I think they’ll be terribly disappointed.”