Scammer had $213,000 in loose change

After a 15-year scam, the owner/operator of a parking lot company was accused of defrauding the Department of Veterans Affairs of more than $13 million. The parking lots were part of the VA Greater Los Angeles Healthcare System, mostly the one near Westwood.

The owner had a contract to run the lots for the VA, and in return he'd hand over 60 percent of the gross revenue. He was to submit annual reports about the money taken in, as well as document any improvements he'd made, which would cut down on what he owed the VA.

The parking lot owner had someone on the inside … inside the VA contracting office. Their relationship went on for 11 years, with the owner handing over nearly $300,000 in bribes.

Ever hear of keeping a double set of books? The owner did, with the phony books shown to the VA. He failed to report the cash from the parking lots, which amounted to untold millions of dollars. Then, when it came to expenses for the parking lots, he marked them up by 600 percent. He told the VA he'd spent $11.6 million in improvements,

when his clean set of books showed he'd actually spent only $1.4 million.

And where did the money go? The owner took $3.1 million in salary, $470,000 in travel

expenses and $413,000 in meals and entertainment. He purchased three condos in Santa Monica, expensive cars like Ferraris and vintage Corvettes, and a racing boat. He had some accounts with over $1 million in them and $213,000 in change at his house.

What bothers me, as it does with most of the deals when thieves are nailed for stealing from the VA, is the short jail time. After a plea agreement, the owner is likely to get only 70 months behind bars.