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Former LA Utility Head admits bribe in billing scandal | Job

Los Angeles (AP) — Former Secretary of the Los Angeles Waterworks Authority, the largest utility in the United States — has been bribed for a corruption scandal resulting from an automated billing disaster that has driven payers outrageous. A bill that agreed to plead guilty, a federal prosecutor said on Monday.

According to a U.S. statement, David Wright, 62, plans with a lawyer hired to resolve a billing blunder and signs a three-year $ 30 million ban on a company created by the lawyer. He admitted in court documents that he had secretly pushed forward. Los Angeles law firm.

The Water and Power Department approved the deal in June 2017, but Wright did not say he would retire and join the company as CEO with a $ 1 million annual salary for a luxury car.

Wright’s lawyer, Anthony Pacheco, did not immediately respond to an emailed comment request on Monday night.

Faced with up to 10 years in prison, Wright will appear in court on Friday.

A federal prosecutor’s statement said he signed a judicial deal last month before the prosecutor announced an indictment against Paul Paradis, a lawyer who had signed a bid ban.

Los Angeles Mayor Eric Garcetti removed Wright from his job in 2019, months before his scheduled departure date, after the FBI attacked the Water Authority and other city halls.

Paradis last week agreed to plead guilty to one of the bribes. He was hired by a city law firm in a billing disaster, leaving hundreds of thousands of utility customers with overly high bills.

The prosecutor’s statement said the prosecutor’s statement instructed Paradis to destroy criminal emails and text messages after Wright began secretly working with the FBI.

At some point, Paradis delivered a light wiped cell phone and a “burner” cell phone for use in his “secret dead drop operation,” so they were able to continue communicating.

In a statement, Wright requested the Board of Directors of the Department of Water and Power to grant another Paradis company a new $ 10 million cybersecurity contract in 2019.

Wright does not inform board members of previous arrangements with lawyers or a new agreement that Wright will receive a $ 600,000 or $ 1.2 million “substantial sign-on bonus” in addition to increased ownership of the company. The statement said.

Prosecutors in the statement also suggested that Wright start secretly working for Paradis’s company before leaving the Water and Power Department, calling Paradis his “ATM.”

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.



Former LA Utility Head admits bribe in billing scandal | Job

Source link Former LA Utility Head admits bribe in billing scandal | Job

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