Calif. Officials Freeze Housing Developer’s Money During Probe

LOS ANGELES (AP) — Two top California officials have frozen almost $150,000 of campaign contributions given to them from a housing developer accused of defrauding government agencies.

The Los Angeles Times reports Thursday that state Treasurer Bill Lockyer and Controller John Chiang set the cash aside as a federal probe is carried out into Advanced Development and Investment Inc., which has built dozens of taxpayer-funded apartment complexes.

The firm is under investigation after prosecutors received allegations it had submitted fraudulent statements and may have built substandard housing.

Lockyer and Chiang sit on a panel that awarded millions of dollars in tax credits to the firm.

Advanced Development lawyers say their clients did nothing wrong.

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 This material may not be published, broadcast, rewritten or redistributed.)

Comments

More From CBS Los Angeles

Play.It
Introducing Your New Podcast Network

Listen Live