L.A. INVESTIGATING ADI for fraud and over-billing. Investigation adopted based on facts uncovered in docs subpoenaed by LA.
Today, Los Angeles City Council had a closed session meeting deciding to move ahead with an investigation of ADI and it's involvement with the City of Los Angeles in response to "factual information" discovered in ADI documents, subpeoned by the city. ADI (Advanced Developers & Investments) does business in Los Angeles and throughout California and are being investigated by the U.S. Attorney's Office for alleged illegal personal money transfers and over-billing.
After the closed session adjourned, the city clerk announced, "city adopts the investigation relative to the facts."
The investigation is, "an effort to protect the City's interests," according to the motion, since ADI is under Federal investigation for the reasons stated above.
However, what caught ZD's attention is THIS part from the motion: "...to discuss the matter of the City's involvement with Advanced Development & Investment Inc."
So we know the city is trying to protect it's interests by moving ahead with an investigation based on information from the documents: But they also want to discuss the city's involvement. So here's where we know they are doing business in L.A.: "One project, southwest of downtown, has been put on hold because of concerns about the company. "We're still looking into it," said Douglas Guthrie, general manager of the Los Angeles Housing Department."
HERE'S MORE:
EXCERPT from post on ADI from 10/12/10. FBI investigates over "improper payments" (bribes): Federal prosecutors have launched an investigation into a prominent Los Angeles developer accused of bilking taxpayers out of millions of dollars, building potentially unsafe apartments and possibly making improper gifts to public officials.
Advanced Development and Investment Inc. has submitted fraudulent bills to cities for affordable housing projects, failed to keep proper records on more than $650 million that flowed through its checking accounts and transferred as much as $80 million to personal accounts — at least one in India — according to a court-appointed receiver's report on the company's activities.
The report was filed in Los Angeles County Superior Court...and was also turned over to the U.S. attorney's office and, at a hearing on Tuesday, receiver David Pasternak asked the court's permission to comply with subpoenas for records from a federal grand jury.
Over the last 20 years, ADI has built more than 50 affordable housing projects in California in cities, including Los Angeles, Glendale, Anaheim, Fresno, Long Beach, Sacramento and San Diego.
In Los Angeles, city officials said ADI has built 16 projects at a total cost of $190 million, including $32 million from the city. The officials said they had no plans to dispatch inspectors because they have received no complaints. [Ever notice how nothing is ever filed against anything happening in Los Angeles as it goes bankrupt under fraud, waste and abuse. KEEP FOCUSING ON EVERY SMALL FISH, MAYBERRY CITY SURROUNDING L.A.!)
One project, southwest of downtown, has been put on hold because of concerns about the company. "We're still looking into it," said Douglas Guthrie, general manager of the Los Angeles Housing Department. (How much you wanna be that's all he ever keeps doing...LOOKING!)
AND HERE IS TODAY'S L.A. CITY COUNCIL MOTION.
MOTION
An affordable housing developer, Advanced Development & Investment Inc. (ADI), is under federal investigation for allegedly transferring millions of dollars to personal accounts and submitting fraudulent bills to cities across the state.
In an effort to protect the City's interests in this matter, subpoenas were issued on behalf of the City to ADI, pursuant to Charter Section 217, to obtain documentary evidence which would have a bearing on the City's interests.
Action is needed to have a discussion on this matter, in closed session if needed? in order to assess the City's rights and interests.
I THEREFORE MOVE that the City Attorney be requested to discuss with the City Council, in closed session if needed, the matter of the City's involvement with Advanced Development & Investment Inc. (ADI) and any subpoenas issued by the City to ADI in order to obtain documentary evidence on this matter.
ERIC GARCETTI
Councilman 13th
District
SECONDED BY:
Ed Reyes
NEXT: ZD will speculate on what this means and who may get "caught up."
NEXT: ZD will speculate on what this means and who may get "caught up."
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