Pinner Construction is alleging corruption and fraud resulted in cheating taxpayers out of $20 million in funds on building a theatre for the Community College District, while the company is at the center of a lawsuit between the longtime treasurer of Inglewood against the City.
Nine time elected treasurer Wanda Brown alleged an overpayment was paid to Pinner out of bond proceeds under her and the City’s management. The end result was Inglewood Mayor James T. Butts leading the council in reducing Brown’s duties, salary, and ejecting her from council meetings when she spoke about the nearly $80,000 overpayment paid to the company when they built a multi-million dollar senior center for Inglewood that ran into similar problems as those they are alleging happened on their project for the college district.
Related: Inglewood Finance Department provides questionable explanation for bond overpayment
Brown further alleges that Butts now has sole authority over signing for bond proceed payments which she indicates invites potential fraud. Pinner was also selected to work on upgrades to Inglewood library’s using the same design and construction consultants on the senior center project.
A review of meeting minutes for the Inglewood library board shows its members and City staff questioning why Pinner got the bid to do work on upcoming library renovations. The board is a hodgepodge of longtime LA democratic party operatives and a couple presumably handpicked by the mayor.
Related: Inglewood Library Board has grave concerns about upcoming library renovations
Pinner recently received a favorable arbitration ruling on what they describe as a “scheme” to defraud bond proceeds for a theatre at Valley College. The arbitrator ordered the district to pay $3.2 million in compensation to Pinner Construction Inc. and its subcontractors, according to the arbitration report obtained by the Times.
In a lawsuit filed Tuesday in Los Angeles County Superior Court, Pinner and two subcontractors have accused the L.A. district’s project team of fraud, corruption and racketeering in conspiring to delay the theater’s construction so consultants could garner more billable hours.
The complaint alleges that taxpayers shelled out $20 million in unjustified payments and that Pinner and its subcontractors were forced to spend more than $24.8 million for extra construction costs, overhead, consultant and legal fees, and other expenses. In the lawsuit, Pinner is demanding that the district remove its consultants, including college project director Mark Strauss, senior vice president of DACM Project Management Inc.
Corruption and fraud beset long-delayed L.A. Valley college theater project, lawsuit alleges
Typically, when voters approve bonds, the organization is required to install an oversight committee to monitor the spending of the proceeds.
In Inglewood Unified, for example, bond proceed spending came under scrutiny when cost overruns swelled the cost of the construction of LaTijera Elementary School and improvements at Monroe Middle School. The construction company was helmed by a local newspaper magnate who gave Inglewood residents free newspapers to promote the passage of Measure GG in 2012. Another questionable bond followed, and the face of both bonds to the community is a former board member who now heads a racial equity division in the County of Los Angeles.
Related: MEGATAXERS: Conflict of Interest Between L.A. County Agencies Mar Inglewood Unified’s Bond
The latest school bond, Measure I, passed by voters was unilaterally passed by County Administrator Dr. Erika Torres and select members of a school PTA with connections to members of the Inglewood council.
Related: Inglewood Unified school bond appears coordinated with City Hall and Parent School PTA
Pinner has filed a lawsuit in Los Angeles Superior Court alleging “racketeering”.
Pinner has opened pandora’s box on the fraud in “construction cost overruns” that can only occur when handpicked oversight committee members are placed on the board to approve them as opposed to true professionals who know what’s up. But are they telling on themselves in the process?
Brown was allowed to introduce misuse of taxpayer funds in her lawsuit against the City which continues next month.
4 Comments
Dirk Griffen is a coward.
That Pinner has chosen to share with one and all how tax payers are routinely stuck paying significantly more than they should is refreshing ! It confirms what many of us have been telling Inglewood residents about IUSD for years !!!!!!!
The sad part is that Pinner complained about that situation but failed to share their concern regarding the Inglewood situations !!! Hmmm.
Interesting omission?
There was a time each large contract went through a completely transparent for the public process.
The requests for proposals were circulated in many trade and local newspapers, announcements were made during council meetings, staff made sure that responders had the necessary licenses and insurance and then…. ready for this ….each company made a public presentation, during a council meeting (for all to watch) and then —hold those chair arms tight the certainly not permissible in this administration thing happened —- the public had the opportunity to ask questions and get answers and the council took a week to receive public input and consider any of the public concerns before publicly voting on which company would be selected to receive the contract. Those were the PBT days when the City Councilmembers believed residents mattered.
The current administration apparently thinks that is a waste of time,,,,some might say really? It is our money and we are stuck with the results how ever dreadful that may be !
Public awareness just might be helpful, as in maybe they read about some unreasonable delays and cost over runs brought on by some companies being considered !
Shouldn’t Pinner have been concerned that they and the other companies responding to requests for proposals did not have to make a presentation to the Library Board ? ..and receive their input before they all made a final presentation before the City Council made the decision to award them the contract?
Now who wants to match which of the consultants and companies that caused delays building the theatre have been part of the cost over runs Inglewood residents have been paying for ?
The truth is, Pinner preferred to build an inferior product than to build what was in their bid packet. I would rather have Pinner forced to build what was in the specs than to see it collapse during the next big earthquake (like the parking structures that went down during the Northridge earthquake) just so Pinner could save money buy cutting corners. This lawsuit is simply a publicity stunt with the hope of getting LACCD to cave because it does not want bad press. Why do you think Pinner hired Lanny Davis??
If you had any idea how these contracts are structured, you would understand how these “consultants” are just powerless babysitters sent to LACCD by those companies billed to taxpayers at 1000% of what they’re actually paid! Pinner doesn’t want or need bad publicity anymore than the rest of these crooks. Davis made a few public statements, but Kellam is doing all the heavy lifting.