Ex-State Drug-Abuse Official Admits Extortion

A man who was the state’s top drug-abuse official pleaded guilty to extortion charges Wednesday, a day after he showed up in court drunk.

Walter Richard Atlee, 52, head of the drug abuse division of the state Department of Alcohol and Drug Programs, admitted extorting $50,000 from one man and attempting to extort $15,000 from another in return for promises of licenses to operate methadone clinics.

U.S. District Judge William J. Rea had Atlee arrested Tuesday after Atlee staggered into Los Angeles federal court three hours late, leaning on a member of his defense attorney’s staff for support.

Atlee, who admitted to Rea that he has an alcohol problem, was released on $50,000 bail Wednesday on the condition that he attend meetings of Alcoholics Anonymous. His sentencing was set for Oct. 5. He faces a prison term of up to 20 years and fines totaling as much as $250,000.

Atlee was charged with taking $50,000 on April 20 from Dr. Daniel Dorr of Los Angeles, who operates seven methadone clinics. Prosecutors said that in return for the money, Atlee promised Dorr licenses to operate new clinics in Pasadena, Lancaster and Bakersfield.

Atlee also was charged with demanding $15,000 on April 10 from Ralph Moore, who operates a methadone clinic in South-Central Los Angeles. Prosecutors said Atlee promised Moore a license for another clinic.

A court memorandum included transcripts of a conversation recorded between Atlee and Dorr on April 9:

Atlee: . . . “I’m not asking for anything.”

Dorr: “Well, $50,000.”

Atlee: “Well, yes. Yes.”

Dorr: “That’s not exactly ‘anything.’ ”

Atlee: “No, but you’ll end up getting all the . . . clinics you want over the next couple years. . . . “ The next day, Dorr contacted the FBI. On April 20, the FBI arrested Atlee as he left Dorr’s office with money he had been handed by the doctor, prosecutors said.