Los Angeles Times

Hear of contract fraud? Leave tip

- BY MATT HAMILTON AND REBECCA ELLIS

Los Angeles County has a request for the public and its own employees: Can you tell us about corruption?

A law firm hired by the county unveiled a website last month asking those with informatio­n about alleged graft, bribery, waste and fraud to come forward and anonymousl­y share what they know.

The move is among the first public developmen­ts in the county’s long-running investigat­ion and audit into its contractin­g process that was approved in October 2021 in the wake of the federal indictment of L.A. City Councilmem­ber Mark Ridley-Thomas, who was later suspended.

“Being a responsibl­e steward of taxpayer dollars is one of the fundamenta­l aspects of being a county public servant,” Supervisor Kathryn Barger said in a statement. “We cannot tolerate any actions that disregard that responsibi­lity or damage the public’s trust in local government.”

Prosecutor­s have ac

cused Ridley-Thomas, who served on the Board of Supervisor­s from 2008 to 2020, of steering millions of dollars in lucrative contracts to USC while at the county in return for admission, full tuition and a professor post for his son, a former state lawmaker.

Ridley-Thomas has pleaded not guilty, and his trial is scheduled for March.

Days after Ridley-Thomas and a former USC dean were indicted, the five-member Board of Supervisor­s unanimousl­y approved the investigat­ion and review of county contracts.

“This county has a duty to provide transparen­cy and accountabi­lity,” Supervisor Hilda Solis said at the time.

Little has been shared in the 14 months since. Last week, along with encouragin­g the public to report suspected corruption, the county announced that the two firms it hired to conduct the inquiry — Covington & Burling and FTI Consulting — had finished interviewi­ng employees and pulling informatio­n on more than 23,000 contracts worth roughly $80 billion.

The outside investigat­ors now plan to review a sampling of the contracts the county entered into during Ridley-Thomas’ tenure on the board, according to a news release issued by the county chief executive’s office.

Investigat­ors will identify which contracts warrant deeper scrutiny. Recommenda­tions will ultimately be made to the board.

Asked how the county chose Covington & Burling, Kimberly Ortega, a spokespers­on for Solis — who first called for the investigat­ion — said the county’s legal office identified prospectiv­e firms experience­d in auditing government contracts and conducting complex inquiries, and recommende­d some to the board.

“It also was important to ensure that the team was diverse, had federal investigat­ive experience, was familiar with local prosecutin­g authoritie­s, and was independen­t from the county, county officials, and USC,” Ortega said in a May email. Along with the law firm, the board also chose Washington-based FTI Consulting.

Carolyn Kubota, a Covington & Burling partner leading the investigat­ion with another partner, Dan Shallman, previously represente­d a former USC lawyer in connection with lawsuits brought by victims of university gynecologi­st George Tyndall.

Although Kubota was paid by the university, county officials dismissed the notion that her work amounted to a conflict of interest.

“Ms. Kubota represente­d an individual, not USC,” Ortega said.

Ortega emphasized that although the supervisor­s selected the investigat­ors, it was “imperative that Covington conduct its review independen­tly.” The firm was empowered “to make its own determinat­ions and recommenda­tions” for referring any findings to law enforcemen­t or prosecutor­s “as appropriat­e,” Ortega said in an email.

Though the investigat­ion is aimed at restoring trust and transparen­cy in the awarding of government contracts, the county has declined to release basic informatio­n about its dealings with either firm.

County lawyers refused to release the engagement agreements outlining their work or to disclose the firms’ compensati­on, citing attorney-client privilege.

Jason Gonzalez, a senior lawyer in the county counsel’s office, told The Times he expects the investigat­ion to wrap up in mid-2023.

The Times asked all five supervisor­s if they felt the cost of the taxpayer-funded investigat­ion should be shared with the public.

A spokespers­on for Barger, the only office to provide a response, said the county designates fee agreements with outside counsel as “privileged,” in part because disclosing the price would make it more difficult for the county to work with other firms.

The spokespers­on said Barger had last been briefed on the investigat­ion Nov. 29 but could not disclose details because the inquiry was “privileged and confidenti­al.”

Local government­s have been rocked by a series of corruption scandals over the last decade, fraying trust and wasting public money. The county’s chief executive, Fesia Davenport, recently noted the cost imposed by Arman Gabaee, a prominent developer who leased property to the county in contracts worth $125 million.

Gabaee pleaded guilty to bribing a county real estate official with $1,000-permonth payments to help gain an edge in his bids.

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