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Glendale, Los Angeles Sue Public Housing Developer For Fraud

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LOS ANGELES (AP) — A Southern California developer of low-income public housing is being sued for fraud by the cities of Los Angeles and Glendale.

Los Angeles city lawyers say Advanced Development and Investment Inc. inflated its bills on 15 public housing projects, costing taxpayers up to $180 million.

The city of Glendale, which paid the developer about $34 million since 2005 for four housing projects, has also filed a fraud suit.

The Los Angeles Times says details about the alleged fraud were exposed as a result of a divorce case involving company president Salim Karimi and Jannki Mithaiwala, the daughter of company founder Ajit Mithaiwala.

A receiver appointed by the judge examined company books and discovered possible criminal activity.

The Times says federal prosecutors in Los Angeles are investigating Advanced Development.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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