PR FIRM SETTLES FOR $6M FLEISHMAN-HILLARD ISSUES APOLOGY TO CITIZENS OF L.A.Byline: Beth Barrett Staff Writer The public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most firm Fleishman-Hillard apologized to the citizens of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. on Tuesday and agreed to pay the city nearly $6 million to settle charges that it overbilled the Department of Water and Power and other agencies. City Attorney Rocky Delgadillo Rockard John "Rocky" Delgadillo (born July 15 1960) is the current City Attorney of Los Angeles, California. Career
``We found evidence that bills were knowingly inflated as the company sought to enrich itself at the expense of the residents of Los Angeles,'' Delgadillo told reporters assembled in front of the DWP's headquarters downtown. ``It is not enough for a corporation to knowingly defraud To make a Misrepresentation of an existing material fact, knowing it to be false or making it recklessly without regard to whether it is true or false, intending for someone to rely on the misrepresentation and under circumstances in which such person does rely on it to his or taxpayers and then simply pay back the money ... the public trust has been violated and there should be some penalty.'' Delgadillo said a forensic accountant he hired put the fraudulent billings at $850,000 - about a fifth of Chick's finding. The rest of the $5.7 million settlement grew out of the city's commitment to impose a penalty, the firm's desire to restore its reputation and both parties' desire to avoid a costly trial. The firm had acknowledged it could not account for more than $600,000 in billings under its contracts with the DWP DWP Department of Work and Pensions (UK) DWP Drinking Water Program DWP Dynamic Weapon Pricing (gamin, Counter-Strike: Source) DWP Department of Water & Power DWP Drinking Water Protection , Harbor and Airports departments. Richard S. Kline
Richard S. Kline directed and produced many game shows through the '70s, '80s, and '90s. , Fleishman-Hillard regional president and general manager of the Los Angeles office, said the company was taking responsibility through the settlement for billings that appeared to be ``improper and indefensible'' as the result of former senior executives in the L.A. office. ``We sincerely apologize to the citizens of Los Angeles and to city officials,'' Kline said. ``Other than these recent problems in our Los Angeles office, we have never had an issue of this type in the almost 60- year history of our firm. We take full responsibility for any billing issues.'' Controller Laura Chick said she stands by her November audit that put the improper billings at $4.2 million. ``The bottom line is the bottom line and they are ponying up $4.5 million,'' said Chick, a potential rival to Delgadillo in a future mayoral race who was not invited to Delgadillo's news conference. ``My audit said they owed us at least $4.2 million and the settlement is that, and some more. The bills and invoices I stopped paying back in November of 2003 still are unpaid and that is part of the settlement. ``We felt there was gross overbilling and inappropriate billings and it seems that was what Fleishman-Hillard was apologizing for today and making restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the about.'' The separate press availabilities illustrated the rift between the controller and Delgadillo, who gave Chick no credit for the final resolution, instead calling it a ``legal matter.'' Chick, who says Delgadillo is blocking her efforts to review millions of dollars in contracts with outside legal firms, said Delgadillo hadn't spoken with her directly but that she was briefed on the settlement at the last minute by his staff. The settlement, which comes amid ongoing federal and state criminal investigations, concludes all city civil legal claims against Fleishman- Hillard and its employees, including the other named defendant in the lawsuit, Doug Dowie, the former general manager of the Los Angeles office. Dowie has filed a wrongful-termination lawsuit against his former employer. His attorney, Mike Faber, said the settlement would have no effect on his client. The alleged overbillings in Fleishman-Hillard's approximately $24 million DWP contract from May 1999 to early 2004, including payments made to subcontractors, emerged amid investigations into broader allegations of contributions being traded for city contracts or a system known as ``pay to play.'' One former senior executive, John Stodder, has been indicted INDICTED, practice. When a man is accused by a bill of indictment preferred by a grand jury, he is said to be indicted. on 11 federal counts of wire fraud, and has pleaded not guilty. Another indictment is imminent, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. federal prosecutors. Mayor James Hahn For the Iowa politician, see . James Kenneth "Jim" Hahn (born July 3, 1950) is an American politician from the Democratic Party. He was the Deputy City Attorney (1975-1979), City Controller (1981-1985), City Attorney (1985-2001) and Mayor of Los Angeles, California , whose office used Dowie and Fleishman-Hillard employees extensively for pro bono Short for pro bono publico [Latin, For the public good]. The designation given to the free legal work done by an attorney for indigent clients and religious, charitable, and other nonprofit entities. projects as well as to help coordinate a trip to Asia in November 2002 and other events that were billed to the DWP and other agencies, praised the settlement. ``From Day One, the mayor has said he wants the ratepayers to get their money back,'' said Deputy Mayor Doane Liu. ``He continues to desire that if someone is found to do anything wrong that they will be punished and prosecuted.'' Councilman Tony Cardenas Tony Cardenas served in the California State Assembly. In the Assembly, he had the powerful position of chair of the Budget Committee. He is now a Los Angeles City Councilman, representing the 6th district, which includes parts of the San Fernando Valley. , whose Commerce, Energy & Natural Resources Committee oversees the DWP, said the city was ``targeted and fleeced fleece n. 1. a. The coat of wool of a sheep or similar animal. b. The yield of wool shorn from a sheep at one time. 2. A soft woolly covering or mass. 3. Fabric with a soft deep pile. ,'' and that steps must be taken to ensure it doesn't happen again. The Board of Water and Power Commissioners unanimously approved the settlement Tuesday, which gives the utility more than $4.2 million in cash, with Fleishman-Hillard agreeing to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such about $1.2 million in invoices unpaid by the city from 2003 and 2004. The settlement will be final when three other city commissions approve the deal, with $85,500 to go to the Harbor Department; $26,000 to the Airport Department; and $126,000 to the Los Angeles Convention and Visitors Bureau. Beth Barrett, (818) 713-3731 beth.barrett(at)dailynews.com CAPTION(S): 2 photos Photo: (1) - Laura Chick, city controller (2) - Rocky Delgadillo, city attorney Andy Holzman/Staff Photographer |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion