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An Open Letter to L.A. from Laura Chick: The HACLA Scandal and the Failure of City Hall

Dear Friends:


Just like you, I have been disgusted over the recent
news reports on the outrageous spending and settlement decision by the Housing Authority
of the City of Los Angeles.

The crisis of ethical judgment at the Housing Authority
demands swift action from the elected leaders of Los Angeles and the state of
California.  The Housing Authority is a state-chartered public agency,
with a billion dollar annual budget, governed by a seven member Board of
Commissioners appointed by the Mayor of Los Angeles.

governing709-thumb-155x201-537.jpg

According to an article in Saturday’s Los Angeles Times
the Board of Commissioners recently approved a shocking $1.2 million dollar
settlement to its disgraced former Director Rudolf Montiel.

Friday evening KCET-TV’s So Cal Connected program
revealed that Montiel had approved shopping and dining sprees paid for by
taxpayers during his reign.  The perks listed as “employee incentives”
included thousands of dollars in purchases from Bed Bath and Beyond, Target,
Edible Arrangements and a whopping $4,500 on Lands’ End sweaters alone.

The lavish dining expenses included tens of thousands of
dollars to such swanky establishments as Ruth’s Chris and Flemings.

For this flagrant abuse of public dollars the Housing
Authority Board of Commissioners has awarded Montiel with a million dollar
payout.

Several top employees who participated in the flagrant
spending are still with the Housing Authority.

What is most disturbing regarding these startling
revelations is the lack of indignation and action by elected leaders. 
When asked for comment by KCET, the Mayor’s office declined comment.  It
is shocking and disappointing but hardly surprising.

Where are the calls for an overhaul of the Board of
Commissioners?  Where are the hearings to discuss the organization and
oversight of the Housing Authority and how it could and should be
reformed? 

KCET had already exposed questionable spending at the
Housing Authority last March yet Los Angeles City officials did not immediately
act to push for needed reform at the agency.

City Controller Wendy Greuel, just now, after over 8
months since KCET’s first expose, is finally releasing an audit that peeks at
the tip of the iceberg already exposed.  Shortly before Friday’s latest
report by KCET, she issued a letter to the Housing Authority’s Commission
President to “strongly suggest” a broader audit.

The time for suggestions has long passed.  It is
time to knock on the Housing Authority’s door and demand that they open up
their books to the full light of day and account for their actions.

Councilmember Dennis Zine certainly had it right
when he spoke of the spending at the Housing Authority, “I find that
outrageous, and Rudy had his own problems, but the fact of the matter is,
people that are adults have a responsible judgment and they get paid to do a
job and these people obviously ripped-off the system, they ripped-off the
federal government, they ripped-off everybody.”

Bravo!  But where is the chorus joining
Councilmember Zine?

When I left the City Controller’s Office in April of 2009
I said that the City of Los Angeles reminded me of an old castle with a
drawbridge over a moat and that drawbridge was quickly retracting.  In
retrospect we see that those words are sadly true.

Now it is time for you the people of Los Angeles to be
indignant and demand immediate and effective action to reform the Housing
Authority of the City of Los Angeles.

In my eight years as City Controller I knew that if the
public became outraged over what one of my audits uncovered and demanded action
that we had a real chance of getting elected officials to act.  Now again
it is up to you.

Sincerely,

LAURA N. CHICK 

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38 Responses to An Open Letter to L.A. from Laura Chick: The HACLA Scandal and the Failure of City Hall

  1. Anonymous says:

    As always the gutless, hypocritical liar, otherwise known as Wendy, becomes outraged, indignant for the waste, abuse and fraud in City Hall, after news reports. She never takes the initiative because she does not want to alienate her patrons, starting with Antonio.

  2. Expense account abuse is just the tip of the iceberg. Just imagine how mismanged this joint is, wasting hundreds of millions. We need a forensic audit of the operations. We need a new board of comissioners as the current politically appointed commissioners do not have the experience or expertise to run a billion dollar organization.
    The City’s Housing Department could also use a thorough review.

  3. MissSpelling says:

    Regardless of what Rudy Montiel’s contract says, it sounds like he’s guilty of flagrant abuse of tax payers’ funds and out-and-out crookery — each of which should be enough to nullify any contractural agreement regarding his departure.
    Not only should he be held criminally liable, but he should be forced to pay back all he stole on the HACLA’s P-cards, not get a $1.2 million tarnished parachute.
    The public flogging he’s taken in the press isn’t good enough, nor would flogging him in City Hall park, if they ever get it cleaned up. Maybe they should do it before the occupiers’ mess is cleared and get rid of all the stench at once.
    As for the big spending employees who are still on the public dole, they, too, should be made to pay back all the money for their ill-gotten purchases. There’s nothing like hurting someone in his own pocketbook to teach them a lesson and made to feel how we feel.

  4. Anonymous says:

    Wendy Greuel has been ASLEEP AT THE SWITCH for the last four years. Her job description as City Controller is that SHE should have been conducting audits of City agencies and program audits of programs. She has been sitting back in her office, apparently sucking on a box of See’s candy herself — rather than auditing anything that might ruffle the pompous feathers at the Mayor’s office or the City Council. I most certainly will not be voting for her for Mayor. Lazy pig.
    The actions of Dennis Zine are equally apparent. Now he wants to run for Wendy Greuel’s office so HE is posing and strutting his indignation. Where have these people been while all of this went on for YEARS? I most certainly will not be voting for this swine either.

  5. Anonymous says:

    Wendy Greuel has no ethics and been the biggest failure next to the Mayor and council of her job duties. Her priority all year has been being in front of tv cameras with all her audits but failed to have any solutions. Is she not the watchdog for our tax dollars? This is what all of us should be asking when she is at her “set up” Mayor debates. Not one idiot from the entire council has come out outraged. Zine is an idiot and I’ve noticed always speaks out AFTER THE FACT. These politicians are clueless and unethical, corrupt and shameful. No one is looking out for US. Where are the FEDS in all of this?

  6. Anonymous says:

    Sheesh. So much huffing and puffing. Were you people born yesterday ? Of course gruel is a lazy corrupt pig, same Villar , garcetti, Zine etc. but you keep voting for these pigs. So if you don’t like gruel now you will go for the equally corrupt garcetti. Ha-ha-ha
    By the way, these pigs are all part of the 1%, democratic party elite and they all don’t give a rats a$$ about your quality of life but you still vote for them.

  7. Anonymous says:

    Antonio skipped town strutting in China with girlfriend Lu Parker, who tries to outdo Gaga in appearance and clothing. Is that the way to represent LA to the Chinese?

  8. Anonymous says:

    Wow! Antonio did not know of Montiel`s hwy robbery. If he did not, sleep at the switch again, and why are we pay him? If he did, and I think he did, a liar.

  9. Anonymous says:

    Thank you, Ron, and thank you commenters, too.
    Some of us voted against them and will do it
    again, please share rhis whole page with
    your friends, neighbors, co-workers and families.
    This may be our last chance to achieve some
    sanity in the government of our city.
    Yes, I am askiing that you campaign for new
    blood in our government. This old stuff is bad news for everyone.

  10. Anonymous says:

    Villar a liar ????
    Oh no, the next thing you tell me that the Pope is catholic?

  11. Anonymous says:

    I think you suckers need to pay more taxes to continue keeping Mr Montiel in the style he’s grown accustomed to ( a security guard! Wow)
    http://www.ripoffreport.com/social-services/hacla/hacla-rudy-montiel-investigat-cd4a5.htm

  12. david r2b says:

    Everyone –
    Maybe Ms. Laura Chick should throw her hat in the ring. She has the experience, name recognition, and she can stir the pot.
    With the current list of candidates and the few other possibles . . . that I’m aware of, I’d vote for Ms. Chick with pleasure.

  13. Anonymous says:

    Oh Villar did now know
    http://www.latimes.com/news/local/la-me-1207-housing-authority-20111207,0,2572004.story
    I’m shocked, shocked there is gambling going on!!!!!

  14. Anonymous says:

    David r2b:
    Ms Chick was still the controller in2009 and there was plenty of waste going on then. I don’t recall her uncovering any? Do you?
    It is very sweet of her to sit in her probably very nice house in Berkeley and show indignation of what is going on.
    Come on people — get in your head that anybody who was on public payroll and got used to feed off taxpayers money cannot be trusted. Stop voting for these crooks. Vote only for people who’ve had real jobs that know the money doesn’t grow on trees.

  15. LA City Joe says:

    WWKJD?
    (What Would Kevin James Do)
    HELP US!

  16. LA City Joe says:

    WWKJD?
    (What Would Kevin James Do)
    HELP US!

  17. LA City Joe says:

    WWKJD?
    (What Would Kevin James Do)
    HELP US!

  18. Anonymous says:

    Thanks Ron for your past coverage of HACLA and comments in the KCET report. However angelinos need your help to warn them about the potential coverup of this story by HACLA, Gruel, Mayor et al. Many things dont smell right and L Chick is right to question the past audit and actions by the city. However important to note LChick was not authorized by Council or allowed by Montiel to audit HACLA during her tenure (she was too independent!). HACLA is an indep agency 90% funded by HUD. So why now?? Hmm??
    Warning of a massive cover up by HACLA, Mayor and Mayor wannabe Gruel. I agree with L Chick that the Gruel audit was nothing more than a rehash of KCET reporters’ work of this past spring and she only released her report after she was told by KCET of their report coming out in Dec. Her report should have taken 60 days and has admitted they did not do a complete audit! The City Atty and Mayor knew of the payoff for Montiel since city Atty serves as the Atty for HACLA and Mayor needs to be made aware of million $ financial impact to the City. City impact yes, because according to HUD and Gruel all of the expenses in KCET reports were not federal funds (I doubt that but that is what has been said). The City and Gruel should not do anymore audits of HACLA in regards to these expenses because they have a conflict of interest and have more interest in covering up the mess for the Mayor. It is very clear from the reports and docs by KCET that several HACLA Sr staff may have broken several theft laws by not paying back cash advances. Therefore this is now a criminal issue and only DA Cooley’s office should intervene ASAP to conduct a criminal investigation.
    DA Cooley should also investigate whether the HACLA BD, Mayor and City Atty have obstructed justice (on going investigation by DA of two or more HACLA Bd members) by providing “hush money” to Montiel under the ridiculous whistleblower out of court settlement.
    This is bogus and totally inconsistent with Montiel, Board and City Atty past positions regarding HACLA Whistleblowers. In 2007 and 2008 Montiel fired 3 fraud investigator whistleblowers (Ruiz, Cordero-Sacks and Carroll) who were investigating Sr staff (including Montiel) for kick backs (Victor Taracena case) involving past Council members and possibly current council members! They reported their suspicions to the DA Cooley, HUD OIG and HUD and soon got fired. Montiel, HACLA BD and City Atty, didn’t settle with whistleblowers to save litigation costs, instead they spent millions of tax dollars to fight these cases in court ( Cordero won her trial and appeals but HACLA is still fighting and wasting $ 1 yr later and still in court).
    How can Montiel claim to be a whistleblower against the Board when he is the only authorized person to pay for Bd expenses by federal and state law. If he is saying his COO Ken Simmons approved of these pmts without his knowledge, then Ken Simmons should resign and be investigated since the Board apparently feels Montiels charges have merit..CANT HAVE IT BOTH WAYS!
    That is why the Montiel pmt is hush money

  19. Anonymous says:

    Guys, Montiel, having learned from his previous hwy robbery, set up the stooges appointed by Antonio, by encouraging them to spend lavishly , so that when he reported them to the HUD IG , he could claim retaliation and thus collect 1.2mm.
    Another con artist appointed by Antonio. Remember the con woman who was appointed as LADOT GM? And the list goes on and on.

  20. Anonymous says:

    Add Michael LoGrande, Planning Director, a con artist and stooge of developers to the corrupt list of the Mayor’s appointees.

  21. Anonymous says:

    Wendy You and all those other politicians, news reporters the mayor and anybody else who was told over AND OVER ABOUT THAT RUDY THE RAT AND DID NOTHING.
    “SHUT THE —- UP..

  22. Anonymous says:

    THAT PATRICE MC CONNELL USED TO BE THIN BUT ALL THAT HAROLD AND BELLE BUTTER BREAD GOT HER FAT ASS LOL
    THATS WHAT POOR PEOPLE DO WHEN THEY GET EXTRA THE EAT IT UP AND GET FAT

  23. LAHD says:

    Ms Controller, what about the RSO dept at LAHD?

  24. Anonymous says:

    Thank YOU Laura Chick
    She is HOT! I love her style.
    The severance pay, per contract. When someone is hire by the Mayor and he permits such a contract we must inquire, Why?
    Forget about the money for a second. If I’m Mayor, and I want the Top Dog at L.A. Housing Authority to pull favors (set aside properties for my developer friends, ect.,)and do doggie tricks, if exposed, my friend is secure for life w 1.2 Million. How long has he held that job? When was the last audit, laura? The Mayor said, he did not know of that contract.
    Laura Chick, she audited that organization?/perhaps she saw that contract, someone from the Board, because the Auditor would have demanded to see that Contract. And to say, NO one saw it, is pure bullshit.
    How would be able to approve such a contract? For so much money? And interest? Man o man. I just feel like good people are unemployed and corrupt people are running our government.

  25. Rick Abrams says:

    Laura, we miss you. We need you. The corruption is destroying the city justa s surely as the mortgage frauds with the credit default swamps destroyed the economy.
    These developers ar not ony crooks, but they’re fools. They creating a huge bubble in the mega-mixed use development market. Angelesnos cn only pray that the market implodes before they build any more of these monstrosities in Hollywood

  26. Anonymous says:

    Laura, we miss you. We need you. The corruption is destroying the city justa s surely as the mortgage frauds with the credit default swamps destroyed the economy.
    These developers ar not ony crooks, but they’re fools. They creating a huge bubble in the mega-mixed use development market. Angelesnos cn only pray that the market implodes before they build any more of these monstrosities in Hollywood

  27. Anonymous says:

    To all of you, Laura Chicks fans
    What fraud has she uncovered while Controller?
    I can’t recall anything. You tell me there were no financial shenanigans while she was there? Come on.
    She is as useless as any of them. Maybe she was less corrupt and not an obvious thief like Villar and probably gruel.

  28. Employment Agreements - PULL THEM ALL says:

    Time to pull the weeds out. How do people live with themselves? Corruption is everywhere. So the mayor approves a payout of 1.2 million, Yadi yadi, yadi, and with the other side of his MOUTH he bitches about meals and small banana’s. Didn’t the Mayor just spend unwisely? I forgot, the Employment Terms. Someone had to approve it. Someone had to co-sign it.

  29. Anonymous says:

    Just fire them all !!! arrest Rudy!!! , Take back the home we bought him and the money he steered to his wife’s business in texas. The mayor knew all about this . He appointed that Williams woman and she sanctioned this payout in his contract renewal before she left the BOC. Boy Villar knew, we told Garrison (reporter) Laura, Wendy, no action taken. We ask for info from HUD regarding some of the spending this joker was doing under the freedom of information act and they acted as though they didn’t know what we were talking about. So just how deep is this ….cover-up

  30. Anonymous says:

    Over two years back, anonymous comments were being made on this site, no doubt, by honest employees about corruption at HACLA. The hope was that the authorities would investigate. Sad! If not exposed in media, the corruption goes unchecked and we have the Gruels & Zines jump on the bandwagon like they uncovered it rather than being part of it.

  31. Anonymous says:

    RUDY THE RAT
    VILLARAIGOSA, ELEANOR WILLIAMS, VICTOR TERACINO, SANDFORD RIGGS, PATRICE MC CONOLLE, JOHN KING, CAROLYN CHUNG, SYLVENA PARKER, SCOTT BUTLER, DEBRA AMENSON,… IF YOU ARE UNFAMILIAR WITH ANY OF THESE FOLKS IT IS BECAUSE THEY ARE RUNNING FOR COVER BUT THEIR FINGERPRINTS ARE ON THE GUN ALSO THE GUN THAT KILLED HACLA’S ABILITY TO SERVE THE POOR AND HOMELESS INDIVIDUALS IN LOS ANGELES. FIND THEM, ROOT THEM OUT AND/OR ARREST THEM…..YOU WILL FIND THEM NOT ONLY CRIMINAL BUT NOT EVEN QUALIFIED TO DO THEIR JOBS FOR THE AMOUNT OF MONEY THEY ARE EARNING. NO DEGREES AND NO COMMON SENSE.

  32. Anonymous says:

    FORGOT ONE DEAR MARIA DEL ANGLE

  33. Anonymous says:

    11:29PM Do you think Alatorre and his “gang” should be in there?

  34. Anonymous says:

    @ Dec.9 2011 11:51 “So many I lose count” of course Alatorre and friends. Some are not so noticeable because they are flying below the radar in hopes that we DO miss them. But if all else fails “cut off the head (boy Villar) and the body must die”

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