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CITY HALL SHOCKWAVE: Antonio Lied — He Knew about $1.2 Million HACLA Hush Money Payoff

UPDATE: Continuing its exclusive coverage of the HACLA Scandal, KCET’s SoCal Connected now reports that Ken
Simmons, the
interim head of the city’s housing authority, is resigning the post  at the Mayor’s request and returning to his old job as chief operating officer. Here is the mayor’s letter to Simmons, praising the HACLA commissioners who paid off the former agency head, Rudy Montiel with a $1.2 million severance package, saying they have his “complete confidence.” (
HACLA-mayoral-letter.pdf) The announcement came after revelations on SoCal Connected last Friday that
executives there had approved hundreds of thousands of dollars in extravagant expenses.
.

Mayor Antonio Villaraigosa lied when he told the LA Times through a spokeswoman on Tuesday that he knew nothing about the $1.2 million payoff to fired Housing Aurhority (HACLA) head Rudy Montiel.
That shocking news from from the mayor’s long-time aide Deputy Chief of Staff Matt Szabo.
“The mayor was absolutely aware and authorized the settlement in this matter,” Szabo told KCET’s SoCal Connected, the news show that triggered a flurry of disclosures about the scandal-plagued poverty agency.
 ”Although he may not have been briefed on every detail of the
settlement, he certainly authorized and encouraged the chairman of the
board to move forward with the settlement so that the agency could end
an unfortunate chapter and move forward.”
SoCal Connected has a followup report from a HACLA insider on this week’s show broadcast Friday at 8:30 p.m.
Here’s more from the today’s KCET online report by Brian Frank:

In March multiple media reports, including a SoCal Connected investigation,
revealed top officials in the Los Angeles Housing Authority, the
beleaguered agency charged with housing the city’s poorest residents,
had been running up questionable charges on the public’s dime. Two
commissioners and then-CEO Montiel were ousted in response.

Last weekend the Times reported the housing authority had agreed to
pay Montiel a severance package that included a legal settlement of
$645,000 and a severance payment of about $540,000 for 18 months pay and
back interest.

“The board was advised in this matter by both the City Attorney’s
office and private counsel, and the settlement was facilitated by an
experienced mediator. The terms were shared with the mayor’s office
before being finalized, and we have his full support for this decision,”
wrote Mitchell Kamin in an e-mail to SoCal Connected. Kamin is the board chair for the housing authority commission.

“Given the terms of the contract and the certainty of a costly and
lengthy legal battle that could have resulted in damages far in excess
of what was paid, we believe the settlement was in the best interests of
HACLA and the City,” Kamin wrote.

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17 Responses to CITY HALL SHOCKWAVE: Antonio Lied — He Knew about $1.2 Million HACLA Hush Money Payoff

  1. Anonymous says:

    Told you so! Read “An open letter……..” Dec 7 2011, 7;18am and I m not that smart.

  2. Just Curious says:

    Was the spokeswomen matt? Just curious.
    Of course everything was approved by the Mayor. He is, after all a PUPPET.

  3. Anonymous says:

    Ship of fools. But, hey Antonio has a ball w Lu in China, why worry for the liitle guy in LA!

  4. Anonymous says:

    Ship of fools all right. Interim Chief is asked to step down by Antonio. hahahahahahahaha

  5. ANNON says:

    PARDON MY REPOST BUT I TOLD YOU..THIS WAS MAYOR, CITY ATTY AND MAXINE WATER PAYOFF TO KEEP MONTIEL QUIET. the Taracena case would have revealed Jordan Downs questions–note much of the slush funds at hacla involved jordan downs and other devlopments.FOLLOW THE MONEY …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

  6. Anonymous says:

    Suddenly when Wendy Greuel wants to run for Mayor, she is everywhere. She says she is SHOCKED, SHOCKED that there was corruption in the HACLA agency. Well, shocked if she has been asleep at the switch over the past few years. Suddenly Wendy is auditing HACLA, and Los Angeles Community College District, and anyone else who can bring attention to Greuel’s mayoral ambitions. You keep workin’ in girl.

  7. Anonymous says:

    WHY ISN’T THE DAMN MEDIA ALL OVER THIS? Is the local media in on this with the Mayor and politicians covering it up?

  8. Anonymous says:

    I stand corrected and just read the LA Slimes piece which I think we’re all shocked they reported this story. Finally credible journalism in the Times

  9. Anonymous says:

    The la times story is weak. Just rehashing of who said what w/ o any investigation. It’s amazing that the sheeple (la voters) are so quiet. Here you have a corrupt to the bone mayor and playoffs to keep other crooks quiet and there is absolutely no outcry and demand for Villar to resign. Of course he is a liberal democrat of mexican heritage so he is untouchable.

  10. Anonymous says:

    The Mayors office did try to cover for the Mayor by lying. Needlessly.
    I give the Mayor credit for appointing Mr Kamin who seems to be trying to resolve the mess that is HACLA.
    And credit to Mr Kamin for dotting his Is and crossing his Ts with this administration. Otherwise they would have left him out there to twist in the wind and try to pin the payoff on him.

  11. Anonymous says:

    Villairagoisa must not have known Kamin or would never have appointed him.
    He is an honest guy who won’t put up with the amateur our that is this Administration.
    It was only when the Mayors office realized Kamin wasn’t going to take this nonsense about the Mayor not knowing about the payoff, did they come clean.
    This press office must have trained under Nixon.

  12. Anonymous says:

    Villairagoisa must not have known Kamin or would never have appointed him.
    He is an honest guy who won’t put up with the amateur our that is this Administration.
    It was only when the Mayors office realized Kamin wasn’t going to take this nonsense about the Mayor not knowing about the payoff, did they come clean.
    This press office must have trained under Nixon.

  13. Anonymous says:

    All these Latino corrupt politicians are ruining California. Now read what dumb ass Felipe Fuentes has just proposed.
    A measure to allow close to one million undocumented immigrants to live and work openly in California without fear of deportation could be on the state’s November ballot.Assemblyman Felipe Fuentes (D-Sylmar) filed the proposal, called the California Opportunity and Prosperity Act (COPA), on Friday
    And where are the Neighborhood Councils on this issue or any other organization who pretend to represent the people?

  14. Anonymous says:

    Opportunity and Prosperity for illegals at your expense suckers!
    Nah, the NC will act like the sheeple they are. Plus it’s racist to deny illegals their well deserving goodies!
    You people are screwed. Ha-ha-ha

  15. Anonymous says:

    THere is a cover up here and Wendy Greuel has brought her big can of whitewash paint. She will focus on the wrongdoing of HACLA staff, management, and Board. She WILL NOT under any circumstances reveal that City Council members and the Mayor had knowledge of or even may have participated in even more corrupt use of federal money to live high off the hog.
    That is why there are allegations that the huge payout to Rudy is actually a payoff for his silence on where the Mayor’s and Council’s were profiting.
    God almighty, how long with Occupy LA and the rest of this City sit on its hands and do nothing about the corrupt public officials?

  16. Anonymous says:

    Antonio lied? When has he told the truth? A lie means absolutely nothing till they put you away for lying. Not going to happen here. We live in the blessed golden world of lies where no amount of corruption puts you away. Go ahead, enrich yourself while you can. We live in a world governed by gods called Villar, Garcetti and Durazo. No harm to the corrupt here.

  17. I will totally be using this information later on. Thanks!

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