Latest news with #FreddyEscobar
Yahoo
27-06-2025
- Business
- Yahoo
New audit flags more than $200,000 in spending by former LAFD union president
The parent organization of the Los Angeles Fire Department's labor union has doubled down on allegations that the union's top official failed to properly document hundreds of thousands of dollars in credit card transactions. The International Assn. of Fire Fighters, which oversees the United Firefighters of Los Angeles City, suspended President Freddy Escobar and two other union officials last month over 'serious problems' with missing receipts identified in a wide-ranging audit going back to 2018. Auditors reexamined their findings after Escobar showed up to UFLAC headquarters last month — news cameras in tow — with a thumb drive and stacks of photocopied receipts that he claimed would clear him. Read more: Top LAFD union officers suspended after audit flags $800,000 in credit card spending In a letter last week reviewed by The Times, the IAFF's auditors concluded that even with the new materials, Escobar failed to properly document more than $212,000 worth of credit card expenses. They said they were not provided full access to UFLAC's internal expense system for their first report and said Escobar engaged in a 'flurry of activity' to reconcile the transactions in recent months. In the months after auditors left UFLAC's offices in December 2024, Escobar directed his staff by email to look for missing receipts, according to the letter. "Escobar — with the assistance of UFLAC staff — worked feverishly to reconcile some of his past credit card expenditures," IAFF General President Edward Kelly and General Secretary Treasurer Frank Líma said in a note this week to the local union's members. Of the 1,974 Escobar credit card transactions auditors recently reviewed, totaling $312,985, only 889, or $100,824 worth, were fully documented with receipts and a business purpose, the auditors' letter said. The initial audit reviewed 1,957 of those transactions, which amounted to $311,498, and found that only 428, or $45,635, were properly documented. 'Our conclusions set forth in our May 1, 2025 audit report remain the same,' the auditors wrote in the letter. 'It appears that Escobar repeatedly failed to comply with his fiduciary duties and obligations, and proper controls were not in place for compliance with state and federal laws and regulations and UFLAC policies on expense reimbursements and expenditure of UFLAC funds due to lack of receipts and documentation of business purpose.' Neither Escobar nor his attorney immediately provided comment. Read more: Suspended LAFD union president disputes allegations of missing receipts: 'I've been unjustly accused' The initial audit had also found that two other UFLAC officials — former Secretary Adam Walker and former Treasurer Domingo Albarran Jr. — together made more than $530,000 in credit card transactions with no receipts or partial documentation. Auditors did not reexamine those findings in the new report. Under UFLAC policy, receipts are required for all credit card expenditures, along with an explanation of the expense, including the names of those present and the business reason. Vice Presidents Chuong Ho and Doug Coates also were suspended and accused of breaching their fiduciary duties in 'failing to enforce UFLAC policy.' After the audit, the IAFF appointed a conservator, John Bagala, to take over the union and 'restore responsible financial stewardship and guarantee the fulfillment of UFLAC's legitimate objectives." Bagala is a state representative for the IAFF and president of Marin Professional Firefighters, IAFF Local 1775, which represents firefighters in Marin County. In a statement Thursday, IAFF spokesperson Ryan Heffernan said the conservatorship is focused on implementing safeguards to prevent future financial mismanagement. "During this temporary conservatorship, the IAFF remains focused on meeting members' critical needs and protecting their hard-earned dues money," he said. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Yahoo
06-05-2025
- Business
- Yahoo
Three LAFD Union Leaders Suspended after Suspected Mishandling of $800,000 in Funds
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways The union representing Los Angeles City firefighters was placed in emergency conservatorship Monday after an audit uncovered what its umbrella organization called misuse of union funds by top leaders. According to a letter released by the International Association of Fire Fighters (IAFF), the organization had voted to suspend United Firefighters of Los Angeles City (UFLAC) President Freddy Escobar, along with former Secretary Adam Walker and former Treasurer Domingo Albarran Jr. The letter accused the men of violating their fiduciary duties and failing to account for hundreds of thousands of dollars in spending. 'The leadership of UFLAC has abdicated its fiduciary responsibilities and placed Local 112 in ill repute,' wrote IAFF General President Edward Kelly. 'The financial malpractice by the leadership of UFLAC has dealt serious harm to the membership.' According to the IAFF, a six-year audit of UFLAC's finances revealed widespread financial misconduct totaling more than $800,000. Escobar alone allegedly made 1,372 credit card transactions amounting to $230,465.67 without providing receipts or documentation. Even after receiving warnings in 2024, he continued to charge union cards, with totals racking up $71,671.44 across 339 undocumented transactions. Walker and Albarran Jr. collectively spent over $530,000 using union credit cards with little to no supporting documentation. 'The auditors could not ascertain the purpose of these transactions,' Kelly wrote. In response to the audit, IAFF has appointed a conservator to seize control of UFLAC's accounts. 'This conservatorship is necessary to restore responsible financial stewardship,' the letter said. Escobar disputed the findings in an Instagram post. View the original article to see embedded media. 'These false allegations are disgusting and politically motivated by those who want to attack the union and me personally,' he wrote. 'I have nothing to hide and I have always worked for the benefit of our membership for the greater good.' The audit's findings follow a series of reports on questionable overtime payments to Escobar and other UFLAC officials.
