QUAKE CLAIMS LEADING TO TRIAL FEMA FUND MISUSE ALLEGED AT CSUN.

Byline: Troy Anderson Staff Writer

A California State University trustee heads a company that is scheduled to go on trial June 21 on allegations that it misrepresented facts to get $21 million in federal disaster money for earthquake-damaged apartments at CSUN.

The case, which has been in and out of the courts for a decade, involves DMJM, a Los Angeles-based architecture, design and engineering firm, and whether CSUN's University Tower Apartments, which was unoccupied at the time of the 1994 quake, was eligible for the disaster relief money.

California State trustee Raymond Holdsworth Jr. is president of Los Angeles-based AECOM Technology Corp., the parent company of DMJM, and previously oversaw AECOM's operating companies worldwide and served as chairman, chief executive officer and president of the DMJM division.

Both DMJM and AECOM have contributed heavily to Mayor James Hahn's campaign against San Fernando Valley secession and DMJM has gotten a contract to work on Hahn's $11 billion Los Angeles International Airport modernization and expansion plan as well as the massive Los Angeles Community College District construction program.

Company officials acknowledge being asked for information by local and federal investigators looking into ``pay to play'' allegations of corruption involving the Hahn administration but deny wrongdoing.

California State University officials describe Holdsworth as an ``outstanding trustee'' who was only appointed last year. The lawsuit was filed in 1996.

``These matters have nothing at all to do with his exceptional service to the university system,'' CSU spokeswoman Colleen Bentley-Adler said.

California State University, Northridge, spokesman John Chandler said the university is ``very confident that FEMA (Federal Emergency Management Agency) funds were properly requested and used by the university in connection with the University Tower Apartments.''

A. Amir Ali, an architect employed by CSUN in 1994 to help coordinate reconstruction of buildings damaged in the 1994 Northridge Earthquake, filed a federal lawsuit in 1996 alleging that CSUN officials filed claims to FEMA for losses that did not qualify for federal quake aid.

CSUN retained DMJM as its construction management firm in December 1994 after terminating Ali.

In 2000, claims against CSUN officials were dismissed, leaving DMJM as the remaining defendant. In 2002, a federal judge dismissed the case, ruling that CSUN and DMJM officials, acting as agents of CSUN, were protected by immunity laws. Last year, the 9th U.S. Circuit Court of Appeals overruled the judge and reinstated the case against DMJM.

In the lawsuit, Ali alleged that before the earthquake, the apartments near Zelzah Avenue and Lassen Street had been vacant for some time and CSUN had no plans to reoccupy the building.

Under FEMA regulations, buildings not in use at the time of the disaster were ineligible for funding unless, prior to the earthquake on Jan. 17, 1994, the owner intended to reoccupy them within a reasonable time.

In 1993, the CSUN Foundation asked for a study to determine the feasibility of reopening the tower as student apartments. In December of that year, the CSUN Foundation voted against the proposal.

Ali alleged that DMJM employees submitted a letter to FEMA fraudulently claiming that the study clearly indicated CSUN's intent to reoccupy the building.

A FEMA official testified in the case that he did not know that the CSUN Foundation had voted against reopening the tower and had he been aware of this, he would not have approved the funding. The housing complex was later demolished by the university using FEMA funds.

``Although the building was vacant at the time of the January 1994 earthquake, Cal State Northridge throughout 1993 and 1994 was actively considering different plans for the reuse of the building,'' Chandler said. ``Under FEMA regulations, that meant that the university was eligible for the FEMA funding we ultimately received to compensate for its loss.''

AECOM spokeswoman Jill Groswirth said DMJM strongly disputes Ali's allegations.

``Further, CSUN and FEMA officials have filed sworn affidavits in the litigation absolving DMJM from any such allegations,'' Groswirth said. ``FEMA has declined to take any action and has never requested that CSUN return any monies.''

DMJM and AECOM contributed about $50,000 to Hahn's anti-secession campaign, LA United, which led the opposition to the San Fernando Valley's 2002 effort to become a separate city. A subcontractor, HNTB, contributed $100,000.

DMJM has strongly denied any connection between the contract and political contributions the firm made to Hahn.

``DMJM Aviation competed for and was awarded a contract for the planning of the LAX master plan based on our experience and qualifications,'' Groswirth said.

Groswirth emphasized that AECOM and DMJM are among many companies and individuals asked for information to assist in the state and federal investigations of ``pay to play'' allegations.

``We believe we are not a target of the investigation and were asked for information due to contributions to LA United by AECOM companies, which were reported in accordance with legal requirements.''

Regarding the lawsuit involving CSUN and FEMA funds, Hahn's political consultant Kam Kuwata said if AECOM and DMJM have ``done something wrong then they should be taken to task and all the full penalties should be implemented with the firm. We obviously have nothing to do with it and no knowledge of it.''

Staff Writer Lisa M. Sodders contributed to this report.

Troy Anderson, [phone]

troy.anderson(at)dailynews.com