RANT: The Los Angeles Fire Department's Union Chief Facing the Heat Over Alleged Financial Mismanagement
Examination reveals overspending of over $200,000 by ex-president of LAFD union.
The Los Angeles Fire Department (LAFD)'s union boss, Freddy Escobar, is under fire for accusations of shady credit card spending worth over $800,000 that can't be accounted for, as per a sweeping financial audit.
The union in question, the United Firefighters of Los Angeles City (UFLAC), is overseen by the International Assn. of Fire Fighters (IAFF). The IAFF slapped Escobar and two other union bigwigs with suspensions over "serious financial irregularities" with missing receipts, traced all the way back to 2018.
Auditors probing the matter revisited their findings after Escobar, with the media buzzing around, marched into UFLAC headquarters with a thumb drive and stacks of printed receipts, claiming they'd clear his name.
California: Top LAFD Union Gobbles Up $800,000 in Unaccounted Credit Card Spending
According to a letter by the IAFF's auditors, reviewed by The Times, Escobar still failed to produce proper documentation for around $212,000 of credit card expenses, even with the new materials. The auditors claimed they weren't granted access to UFLAC's internal expense system during their initial report, and Escobar was suspected of making a "last-minute scramble" to reconcile the transactions in recent months.
Out of 1,974 of Escobar's credit card transactions reviewed by auditors, worth $312,985, only 889, totaling $100,824, were fully documented with receipts and a justifiable purpose. Compared to the initial audit, which examined only 1,957 transactions amounting to $311,498, and found that only 428, or $45,635, were properly documented, the findings remained alarmingly inconsistent.
"It appears Escobar consistently breached his fiduciary duties, and insufficient controls were in place for compliance with laws and regulations, as well as UFLAC's policies," stated the auditors in their letter.
Escobar brushed off the allegations, suggesting a political motive since he'd publicly underscored concerns about insufficient funding and scant resources for the LAFD.
The Drama Unfolds: Suspended LAFD Union Prez Disputes Missing Receipt Claims
Tensions peaked outside the union's office four days after the suspensions, with Escobar protesting his innocence against accusations of sloppy record-keeping. Though auditors didn't reassess the financial irregularities involving two other UFLAC officials and $530,000 in unaccounted spending, they're keeping a close eye on the situation.
UFLAC policy mandates receipts for all credit card expenses, along with an explanation of the expenditure, including attendees' names and the occasion's justification. Vice Presidents Chuong Ho and Doug Coates were also suspended for neglecting their fiduciary duties by failing to enforce UFLAC's expense policies.
In response to the scandal, the IAFF appointed John Bagala, representing California firefighters, to take charge of the union, "restoring responsible financial stewardship," and ensuring the pursuit of UFLAC's objectives.
Investigations and Fallout: What's Next?
The IAFF is geared towards implementing safeguards to prevent further financial mismanagement during the temporary conservatorship, ensuring members' needs are met and their hard-earned union dues are protected.
As the investigations continue, staying informed through reputable sources like the Los Angeles Times, LAist, Associated Press, and IAFF's official communications will keep you in the loop regarding the ongoing financial audit, suspensions, and political implications for the LAFD's union leadership.
- The International Assn. of Fire Fighters (IAFF) has appointed John Bagala, a representative of California firefighters, to take control of the United Firefighters of Los Angeles City (UFLAC), aiming to restore responsible financial stewardship and ensure the union's objectives are met.
- In light of the financial mismanagement allegations, the IAFF is vigilantly working to establish safeguards, maintaining members' needs and the protection of their union dues during the temporary conservatorship of UFLAC.
- The Los Angeles Times, LAist, Associated Press, and IAFF's official communications are reliable sources to stay updated on the progress of the ongoing financial audit, suspensions, and political implications for the LAFD's union leadership, as the investigations continue.
- The Los Angeles Fire Department (LAFD) union, with the United Firefighters of Los Angeles City (UFLAC) under conservatorship, is awaiting the final determination on the allegations of financial mismanagement, involving $800,000 in unaccounted credit card spending, as per the California law and general-news standards. Crime-and-justice covering the case highlights the potential consequences for union leaders like Freddy Escobar, Chuong Ho, and Doug Coates.
