In June 1986 Alatorre was accused of violating the state Political Reform Act in an "unusual civil lawsuit" filed by the city attorney's office in connection with Alatorre's successful race for a City Council seat in 1985. The suit contended that Alatorre and the treasurers of his two political finance committees, including his sister, had used money from his State Assembly campaign fund to run for City Council. The treasurers were indicted criminally, but City Attorney James K. Hahn said he lacked criminal evidence against Alatorre, and so Hahn filed the civil action. Alatorre claimed that the city attorney gave him "vague advice" and that he was a "guinea pig because his was the first election conducted under the city's new campaign law.
