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LA Low-Income Housing Giant Under Investigation

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Financial Cash Illegal pension

(AP/FILE)

LOS ANGELES (AP) — A Los Angeles company that built more than 50 low-income housing projects in California is under federal investigation into claims that it bilked taxpayers out of millions and built potentially unsafe apartments.

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A court-appointed receiver for Advanced Development and Investment Inc. reported that the company submitted phony bills to cities, failed to keep proper records on more than $650 million and transferred up to $80 million to personal bank accounts.

The Los Angeles Times says the report was turned over to the U.S. attorney’s office and the company is under investigation by a federal grand jury and various agencies.

A call to the receiver, David Pasternak, on Wednesday was not immediately returned.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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