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Ken Simmons, L.A. Housing Authority CEO, Tries to Justify Years of Outlandish Spending

Categories: City News, Media

ken simmons laurel erickson kcet.jpg
KCET
Simmons did his best to brush off reporter Laurel Erickson for months.
The reporters and producers at SoCal Connected, a weekly investigatory segment on local TV station KCET, have achieved the impossible.

Their ongoing expose of the Housing Authority of the City of Los Angeles (HACLA) -- based on documents that even L.A.'s own City Controller and District Attorney couldn't get their hands on -- have turned an over-entitled public agency that blew through hundreds of thousands in perks into a cowering puppy in the headlights.

Now that the infuriating shopping sprees have (hopefully) come to a halt, the scramble to save face is borderline hilarious.

In its latest update on the HACLA scandal, KCET reveals that Ken Simmons, longtime HACLA exec who took over for Rudy "$400 lunches" Montiel when he was fired in March, recently issued a hasty memo to his staff.

Simmons "told employees that due to budget constraints they would have to give up all staff events and accept other limitations on spending," reports KCET.

One priceless excerpt:

"The media stories leave out the fact that this agency has made incredible accomplishments in the last six years and continue to maintain its high performer rating by [the U.S. Department of Housing and Urban Development], thanks to your hard work; these served as the main reason for the employee event [sic]."

As if doing the job for which taxpayers are (quite heavily) compensating you is an excuse to waste hundreds of thousands more on travel, extravagant steak dinners and freaking $500 pink elephants. (For more nauseating details on HACLA's credit-card habits, see our first post on the spending reports. You can also dig through KCET's groovy interactive database.)

Simmons insists the memo was not in reaction to media pressure. But according to KCET, he sent the email yesterday morning -- right in the heat of a followup Los Angeles Times report that Montiel, former CEO of HACLA, had been paid an additional $1.2 million after his shameful departure.

The memo makes excuses for that little debacle, too:

Because Montiel had filed a wrongful termination lawsuit against HACLA, battling it out in court would be too risky for the agency, Simmons wrote. Instead, the agency had reached a settlement of $645,000, more than half of which would be "covered by Insurance [sic] and the rest of the agency."

The only reason that lawsuit would have been "risky" to fight, of course, is because Montiel had called out the authority's Board of Commissioners for its own extravagant spending. So essentially, HACLA is just shelling out hundreds of thousands more in taxpayer dollars to lock all skeletons in the closet for good.

That's on top of almost $13 million in additional whistleblower lawsuits HACLA fought in the years leading up to Montiel's ousting, KCET producer Karen Foshay reminded us earlier this week.

So, uh -- good try, Simmons. But this one's not going away anytime soon. Not as long as Foshay, Erickson and the team are alive and digging.

[@simone_electra / swilson@laweekly.com / @LAWeeklyNews]

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4 comments
Hacla Watchdog
Hacla Watchdog

Warning of a massive cover up by HACLA, Mayor and Mayor wannabe Gruel. I agree with L Chick that the Gruel audit was nothing more than a rehash of KCET reporters work of this past spring and she only released her report after she was told by KCET of their report coming out in Dec. Her report should have taken 60 days and has admitted they did not do a complete audit! The City Atty and Mayor knew of the payoff for Montiel since city Atty serves as the Atty for HACLA and Mayor needs to be made aware of million $ financial impact to the City.  City impact yes, because according to HUD and Gruel all of the expenses in KCET reports were not federal funds (I doubt that but that is what has been said). The City and Gruel should not do anymore audits of HACLA in regards to these expenses because they have a conflict of interest and have more interest in covering up the mess for the Mayor. It is very clear from the reports and docs by KCET that several HACLA Sr staff may have broken several theft laws by not paying back cash advances.Therefore this is now a criminal issue and only DA Cooley's office should intervene ASAP to conduct a criminal investigation.

DA Cooley should also investigate whether the HACLA BD, Mayor and City Atty have obstructed justice (on going investigation by DA of two or more HACLA Bd members) by providing "hush money" to Montiel under the ridiculous whistleblower out of court settlement. This is bogus and totally inconsistent with Montiel, Board and City Atty past positions regarding HACLA Whistleblowers. In 2007 and 2008 Montiel fired 3 fraud investigator whistleblowers (Ruiz, Cordero-Sacks and Carroll) who were investigating Sr staff (including Montiel)  for kick backs (Victor Taracena case)  involving past Council members and possibly current council members! They reported their suspicions to the DA Cooley, HUD OIG and HUD and soon got fired. Montiel, HACLA BD and City Atty, didn't settle with whistleblowers to save litigation costs, instead they spent millions of tax dollars to fight these cases in court ( Cordero won her trial and appeals but HACLA is still fighting and wasting $ 1 yr later and still in court). 

How can Montiel claim to be a whistleblower against the Board when he is the only authorized person to pay for Bd expenses by federal and state law. If he is saying his COO Ken Simmons approved of these pmts without his knowledge, then Ken Simmons should resign and be investigated since the Board apparently feels Montiels charges have merit..CANT HAVE IT BOTH WAYS!

That is why the Montiel pmt is hush money     

Happy_HACLA
Happy_HACLA

Look into disgraced HACLA security guard Scott Butler's new $52,000 Dodge Charger sport scar Kenny boy bought for him with taxpayer money. How can a security guard rack up $1100 in meals? Why does a security guard even have a HACLA credit card in the first place? 

Gdav520
Gdav520

OK L.A.!! Fire every money hungry greedy monster that disgustingly spent the citizens of Los Angeles hard earned tax money they handed over to you with confidence their city would do it's job the tax payers pay them to do, and run the city at least somewhat efficiently! Then hire qualified professional employees to replace the sorry excuses that have created this financial disaster, (like the morons we are already dealing with in Washington and Sacramento), and figure out how you will straighten this mess out and get back to doing the jobs you were overpaid, trusted and hired to do! Be an example to the rest of the nation that we are not putting up with this criminal corruption of of our country anymore, and every single employee can and will be replaced!!  

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