Archive for the 'Bribes' Category
July 19, 2007
BY BEACON NEWS STAFF
A North Aurora woman was arrested on bribery charges Wednesday stemming from an investigation in which she allegedly offered a city inspector $200 to overlook housing violations at a property apparently owned by one of her relatives.
Jahnnette Campos, 33, of the 2000 Block of Westover Road, allegedly offered the money during a telephone conversation on July 9.
The alleged code violations were at a home in the 400 Block of Hinman Street in Aurora and included an alleged out-of-code occupied apartment in the basement and non-compliance with city apartment registration ordinances.
A housing inspector found the alleged violations after the city received a complaint of a car parked on the property’s lawn, alleged over occupancy, and garbage cans in plain view, on June 21.
On July 9, Campos allegedly called a different housing inspector and different offered $200 to the original inspector to overlook the violations. Both inspectors reported the incident to their supervisor who then contacted police. The Kane County State’s Attorney’s Office authorized the felony charge on July 12 following an investigation.
July 20 2007 | Bribes | No Comments »
HUD Official and Realtor Imprisoned for Bribery Scheme
A former official at the Department of Housing and Urban Development (HUD) and the owner of a real estate company were sentenced for participating in a bribery scheme. The owner of the real estate company, Mr. Kailani, paid bribes to Karen Christensen, a Government employee totaling $80,300, including a BMW automobile. In return, Ms. Christensen sold Mr. Kailani 20 HUD properties for one-third of their appraised value. Mr. Kailani paid HUD $700,000 for the properties, which were appraised at $2.1 million. Mr. Kailani resold the HUD properties for $2.2 million. HUD paid Mr. Kailani $48,750 in real estate broker’s commissions in connection with these transactions. Ms. Christensen was sentenced to 24 months imprisonment, followed by 3 years probation, and was ordered to pay $1.4 million in restitution. U.S. v. Christensen, Cr. No. 99-1252 (C.D. Cal. 2000). Mr. Kailani was sentenced to 27 months imprisonment, followed by 3 years probation, and was ordered to pay $1.4 million in restitution. U.S. v. Kailani, Cr. No. 99-1253 (C.D. Cal. 2000). (Many thanks to the Federal Ethics Report for information about this case.)
July 03 2007 | Bribes | No Comments »
Real estate agents, particularly buyers agents, have a fiduciary duty to their clients to recommend the very best inspectors based solely on merit. Buying a home is a rare occurrence for most people and the agent’s professional recommendations are very much needed and relied upon.
However some inspectors bribe real estate agents to give them good recommendations. These inspectors pay the agents (or their real estate companies) to be on what is often called “preferred vendor lists.” The real estate agents then recommend the inspectors who have paid the most (not necessarily the best inspectors). The agents trick their clients into thinking these inspectors are recommended because they are competent, when in fact the real estate agents are only recommending these inspectors because the inspectors “bought” the agents’ praise.
How can a consumer be sure the agent is fulfilling his/her fiduciary duty and recommending the best inspector based on merit? Several home inspection associations have Codes of Ethics which prevent their members from bribing real estate agents and prohibit participation in preferred vendor schemes. These inspectors do not buy their referrals but instead rely on their own good reputations. Home buying consumers should always check to make sure the home inspector is a member of one of the following trade associations that prohibit participation in preferred vendor schemes:
-California Associaition of Certified Home Inspectors at calnachi.org
-International Association of Certified Home Inspectors (InterNACHI) at www.nachi.org
-Master Inspector Certification Board at www.certifiedmasterinspector.org
A consumer who is referred to an inspector who is not a member of any of the aforementioned associations can never be sure if the recommendation is based on merit or money.
June 28 2007 | Bribes | 1 Comment »
Associated Press, June 26, 2007
NEW YORK
Two restaurant owners were arrested for bribing health inspectors to overlook uncovered raw meat and mouse droppings at their establishments, investigators said Friday.
Undercover officers with the Department of Investigation, posing as city health inspectors, were offered bribes of $500 after pointing out several health code violations at H and V Restaurant and Hallal Restaurant, both in Brooklyn, the city agency said in a release.
At H and V, the officers found flies, mouse droppings near the stove and raw meat in the sink near pots and pans. The owner, Yank Ying Hu-Tan, gave the officers $500 to overlook the problems, investigators said. He was arrested June 22.
At the Hallal Restaurant, owner Shameem Chowdhury paid an undercover officer $500 to overlook uncovered meat in the refrigerator and other violations, the DOI said. Chowdhury was arrested Wednesday.
Two other restaurant operators were also charged in the investigation. Wahlong Kitchen employee Qixing Chen in Brooklyn paid $300 for investigators to overlook mouse droppings, roaches and flies. Chen was also arrested Wednesday on charges of bribery.
At the Yummy Restaurant in Queens, investigators determined that Ri Ying Zheng, the establishment’s food protection certificate holder, was not at the restaurant though under terms of the city license she must be present whenever food is prepared. Zheng later appeared and paid $300 for inspectors to overlook her absence, the DOI said. She was arrested Friday.
All four were charged with third-degree bribery. Messages left at the restaurants were not immediately returned Friday. A DOI spokeswoman did not know if the suspects had lawyers. The Queens District Attorney’s office said Zheng hadn’t been arraigned yet, and the Brooklyn District Attorney’s office didn’t have information on their defense attorneys.
The arrests come after dozens of rats were videotaped crawling around a KFC/Taco Bell in New York. City health inspectors ordered the Manhattan fast-food eatery closed in February after the video, showing the rodents skittering across the floor, climbing on tables and roaming countertops in the early morning, was circulated worldwide on the Internet.
The inspector who had given that establishment a passing grade resigned before the release of two city reports that cited her “lack of diligence” as well as systemic failures in the inspection system.
June 27 2007 | Bribes | No Comments »
San Francisco Chronicle
Jason B. Johnson, Chronicle Staff Writer
Saturday, June 24, 2006
An Alameda building inspector tried to shake down the owner of a Chinese restaurant for free meals, materials to build an addition to his home and a food blender to give his wife for Christmas, according to court documents filed Friday.
Hans Warner Williams, 46, of Dublin, was arrested at his home Thursday on two counts of solicitation of bribery and arraigned Friday in Superior Court. He entered no plea and is due back in court on July 7. He was released after posting $30,000 bail.
Williams, who was placed on administrative leave, has worked for the city for more than a decade with no complaints. His arrest came as a surprise to city officials.
His attorney, William Linehan, declined to discuss details of the case but said the charges do not match his client’s “unblemished record” in more than a decade on the job.
The alleged crimes took place between December 2005 and June 2006. The investigation began after local businessman Richard Chiu, whose family owns the Chef’s Wok restaurant on Webster Street, called the FBI to file a complaint.
In December, Williams spoke to Chiu at the restaurant, which was having its kitchen remodeled, and pointed out several problems, according to court documents.
Williams suggested he could overlook the problems, telling Chiu “you help me and I’ll help you,” according to documents. Williams also allegedly said he could help grease the wheels with city officials regarding other projects the family wanted to develop.
The inspector said he was planning to build an addition to his Dublin home and suggested Chiu and his family set up an account at an Oakland store called Economy Lumber so that Williams could buy supplies and charge them to the account, authorities say.
During that and other meetings, Williams ate food prepared by Chef’s Wok and did not pay. He later asked if he could get free food from Chef’s Wok and the House of Bagels, another establishment the family owned, according to court documents.
Chiu could not be reached for comment Friday, and Williams did not return a telephone call seeking comment for this story.
On Dec. 13, Williams showed up unexpectedly at Chef’s Wok to perform an inspection, and declined to sign off on work in progress, records show. Before leaving, he gave Chiu printed information about a Vita-Mix food blender that he said he wanted to give his wife for Christmas. Williams suggested that Chiu buy the blender at Costco, which had the best price.
The next day, Williams approved the progress of the work without comment. In an interview with investigators, Chiu said he bought the Vita-Mix blender and left it with an employee at the restaurant. He said Williams picked it up before Christmas.
Chiu began to secretly record conversations with Williams in the middle of January, court records show. During those talks, Williams again discussed setting up the joint account, mentioning he wanted to buy a window and a skylight.
As the investigation progressed, agents provided Chiu with audio and video equipment to record additional conversations with Williams.
During a March 24 lunch at the restaurant, Williams allegedly discussed the lumber store account with Chiu, telling him, “I’m going to be starting my project in six or seven weeks” and “I want to be able to access the account, but I don’t want to make it too obvious.”
Williams told Chiu the work being done on his house wasn’t that large. “It’s only going to be 300 square feet … don’t worry, you can always say no. … I am not going to build another house on the side.”
According to the city’s Web site, Williams gave final approval to the remodeling work at Chef’s Wok on March 24. The site lists no comments from Williams. On April 26, Williams met Chiu and gave him a list of building supplies, which Chiu turned over to investigators.
When Chiu expressed reservations about the gifts during a May 4 conversation, Williams responded, “I don’t want you to think I’m going to nickel-and-dime you for the next five years.”
June 25 2007 | Bribes | No Comments »
ALAMEDA — A city building inspector accused of soliciting bribes from a local business owner was arrested Thursday morning after a several-month FBI investigation, authorities said.
FBI agents arrested Hans Williams, 46, at his Dublin home without incident, an FBI spokeswoman said.
Williams, a longtime City Hall employee who city officials said Thursday has no history of similar complaints, is accused of soliciting bribes from a business owner while inspecting two properties between December 2005 and June 2006, the FBI said.
FBI spokeswoman LaRae Quy said federal investigators get involved any time public trust is violated.
“This is a basic public corruption case,” she said. “We don’t care if it’s local, state or federal … we will go after them.”
Alameda Assistant City Manager David Brandt said Williams was placed on administrative leave Thursday following his arrest.
Williams was booked into Santa Rita county jail in Dublin on $30,000 bail, according to the Alameda County District Attorney’s Office. He is scheduled to appear in court today.
Brandt called the allegations rare but said the city takes them seriously and will conduct its own investigation.
“It’s a firing offense,” Brandt said.
An Alameda homeowner had accused another building inspector of taking bribes during a spontaneous inspection of his Marina Drive home in September 2000.
June 25 2007 | Bribes | No Comments »
June 20, 2007
Monday was a bad day for small-time developer Vauguens Michel. When a DOB inspector checking out a construction site of Michel’s at 514 Maple Street noticed that another of his properties just five lots away had illegal excavation work going on, the 49-year-old Brooklyn resident offered $500 to try to convince the inspector not write him up. Rebuffed, Michel doubled down with an offer of $1,000. You see, sites with excavation deeper than five feet are required to have shoring and bracing. The hole at 504 Maple (at right) was between 12 and 14 feet deep. Michel may have been playing the game as he thought it was played, but this one backfired in his face. The inspector reported him immediately and the developer was arrested yesterday by the city’s Department of Investigation on charges of Bribery in the Third Degree, a class D felony, and Rewarding Official Misconduct in the Second Degree, a class E felony. In all, he could be looking at up to seven years in the clinker.
June 20 2007 | Bribes | No Comments »
A few housing officials in the counties of Paterson and Passaic were found guilty on charges of bribery. Some of these former and current housing officials were taken into custody by federal agents when a local property manager brought out the case into the open.
The local property manager had secretly cooperated with the federal agents and the proof accumulated exposed fourteen such employees on charges of taking bribes from as low as $50 to as high as $3000. Details also showcased that a few of the accused have taken thousands of dollars in the form of bribes over the years. Among the officials who have been charged with the crime are city building inspectors, employees of the Paterson Housing Authority, employees of the Passaic valley water commission and also inspectors in the Paterson Environmental health department.
Detailed investigation showed that corruption is quite deep rooted within the housing division and that the fact is common knowledge. People offer thousands as bribes to get their way in code violations, and for some officials it has been difficult to refuse the good money. This is especially the case for that segment of workers who work a lot but do not get sufficient wages. Records showcased that in the year 2006, housing inspectors undertook 4,539 inspections, and over 3,000 zoning inspections. With a staff of just six housing inspectors and a zoning inspector and all being overworked no one had the time to audit the reports.
This investigation has brought out into the open one of the ugly aspects of renting and buying homes in New Jersey. Homeowners and purchases of new homes need to be wary of such people and apply through trusted agents only. A news conference would soon be called to discuss about the arrests and preventive action to be taken in the future.
June 03 2007 | Bribes | No Comments »
Attorney General Lockyer Announces Arrest of Nursing Home Operator in Connection with Alleged Bribery of Los Angeles County Facilities Inspector
Owner Told Confidential Informant Other Local Health Agency Employees on the Take
FOR IMMEDIATE RELEASE
(916) 324-5500
(LOS ANGELES) – Attorney General Bill Lockyer today announced the state Department of Justice Bureau of Medi-Cal Fraud and Elder Abuse (BMFEA) has arrested the owner of six skilled nursing facilities in Southern and Central California in connection with the alleged bribery of a nursing home inspector for the Los Angeles County Department of Health Services (LADHS).
“In my seven years as Attorney General, I have seen few more disturbing cases of public trust betrayed and gross abuse of the elderly who cannot defend themselves,” said Lockyer. “The owner of these homes lived in luxury on the taxpayers’ dime while the senior citizens she was paid to care for lived in squalor. Our investigation in this case will continue. I hope the owner’s claims of having a cadre of public employees secretly on her payroll prove to be false bravado. But if they are not, we will apply the full force of the law.”
Marlene Zerna Robertson, 62, of Bradbury Estates, owner of MZR, Inc. (MZR), was arrested Thursday and booked in Los Angeles County jail on five counts of bribery and one count of conspiracy to commit bribery. Along with Robertson, BMFEA agents arrested two co-conspirators: Isidra Abacan Agulto, 54, of Glendale, corporate administrator of MZR; and Josemar Aberin Mercado, 49, of Bradbury Estates. Agulto was booked on five counts of bribery and one count of conspiracy to commit bribery, and Mercado was booked on one count of conspiracy to commit bribery.
Following the arrests, BMFEA agents late Thursday completed execution of search warrants at the homes of Robertson and Agulto, MZR headquarters in Los Angeles, as well as MZR-operated skilled nursing facilities in Los Angeles and Pasadena. Details about cash, property or other items seized during the searches will be kept confidential pursuant to the warrant filed under seal in Los Angeles County Superior Court.
The arrests came in connection with $7,000 in alleged bribes paid by Robertson to an LADHS facilities inspector working with BMFEA as a confidential informant. The payments were made from December 24, 2005 through April 4, 2006. The LADHS employee contacted BMFEA agents following the first payment of $500 cash, which came December 24, 2005 in a holiday card from Robertson that Agulto allegedly gave to the employee. After contacting BMFEA agents, the LADHS inspector agreed to become an informant and received an additional $6,500 in alleged bribes from January 2006 through April 4, 2006.
In addition to the monetary payments, Robertson allegedly gave the informant an $800 Prada purse, and offered to provide the LADHS employee paid vacations to Europe, as well as a Lexus or Mercedes.
In return for the payments, the LADHS employee was supposed to alert Robertson and Agulto to any upcoming LADHS inspections, or any inquiries or potential investigations by BMFEA. Under the guise of “consulting,” the payments were intended to buy other services for Robertson and MZR, Inc. Robertson and Agulto allegedly told the informant not to worry about participating in the scheme because the informant was not alone. Robertson had other LADHS employees on her payroll, the informant allegedly was told, including some at the managerial level.
The BMFEA criminal probe originated with its September 2005 “Operation Guardians” inspection of MZR’s Huntington Healthcare Center, located on Huntington Drive in Los Angeles. Established by Lockyer and led by his office, Operation Guardians is a multi-agency task force which conducts surprise, on-site inspections of California’s 1,400 skilled nursing facilities. One Operation Guardians inspector called MZR’s Huntington center “the worst they have seen in a skilled nursing facility,” according to the September 2005 inspection team report. Among the more than 40 health and safety violations found at the facility, the worst included:
Residents wearing filthy clothes, soiled with urine and feces; a resident with an open head wound left unattended; rodent droppings in the pantry where residents’ food was stored and improperly exposed; pigeon droppings in the residents’ dining room; medication improperly stored and administered; inadequate medical record-keeping; and highly irregular practices regarding use of residents’ trust accounts.
Following the Operation Guardians inspection, the BMFEA launched an investigation into possible criminal elder abuse at the Huntington facility, while the LADHS was called in to clean up conditions and protect residents. During the course of the BMFEA investigation, the LADHS inspector contacted BMFEA agents and told them about communications the inspector had with Agulto regarding MZR’s plan to correct the egregious violations. (LADHS conducted its own inspection following the Operation Guardians inspection.)
The LADHS inspector also asked Agulto about reports that MZR hired LADHS employees as “consultants” to perform work outside the scope of their job duties. Agulto asked the inspector if the inspector was interested in becoming a “consultant.” Around December 23, 2005, Agulto contacted the inspector and said Robertson wanted to give the inspector a holiday card, which Agulto delivered with the $500 inside on December 24, 2005. The LADHS inspector then agreed to become a confidential informant for BMFEA.
In addition to the facilities in Los Angeles and Pasadena, MZR operates four other homes in Compton, Fontana, Fresno and Hemet. Combined, the six facilities have 530 beds. From 2004 through the present, Robertson and MZR have received $44.26 million in payments from Medi-Cal.
To help protect loved ones from abuse and choose a high-quality skilled nursing facility, read “A Citizen’s Guide to Preventing and Reporting Elder Abuse,” available on the Attorney General’s web site at www.ag.ca.gov/bmfea/publications.php
June 03 2007 | Bribes | No Comments »
New York Post
By STEFANIE COHEN
May 16, 2007 — A former inspector for the city Buildings Department has been charged with accepting $17,000 in bribes to overlook sewer violations and approve faulty work, according to a federal arrest warrant unsealed in Brooklyn federal court yesterday.
Dean Massari is accused of taking the kickbacks in $500 installments from the supervisor of a plumbing contractor over a three-year period, according to the affidavit for his arrest.
He resigned from the city agency in 2003, according to a department spokesman.
The scam was uncovered when an employee for the contractor alerted the feds to the palm-greasing, authorities said.
The employee said his boss would periodically give him white envelopes labeled “Dean” filled with $500 in cash to give to the inspector.
In exchange for the cash, Massari approved work without inspecting it, ignored violations, and expedited the approval and inspection process, court papers state.
Massari was arraigned and released on $100,000 bond Monday, according to court filings.
May 17 2007 | Bribes | No Comments »
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