Prostitutes, Vegas Bachelor Parties Part Of DWP Scandal Lawsuit

LOS ANGELES (CBSLA.com) — The Los Angeles Department of Water and Power is going after one of its contractors in court, claiming the utility was bilked for money that helped pay for escorts and parties in Las Vegas.

According to the lawsuit, PricewaterhouseCoopers billed the DWP for services that were never performed, and some of the money was spent on prostitutes, luxury hotels and liquor in Las Vegas.

Several PricewaterhouseCoopers managers and a subcontractor are accused in the lawsuit of fraud that allegedly took place between 2011 and 2013.

PricewaterhouseCoopers denies any wrongdoing and has called the lawsuit "baseless."

PricewaterhouseCoopers was hired in 2010 to help with the DWP's new billing system, but the department claims the firm misrepresented its abilities.

The department sued the firm last year, but Thursday the suit was amended to add allegations of conspiracy and fraud.

According to court documents filed by DWP attorneys, one of the accused "openly boasted" and allegedly said "we are going to cover a lot of this trip with LADWP money."

The parties included escorts and were held at the Ghostbar nightclub, the Marquee nightclub, the Chandelier Lounge and the Encore Beach Club in Las Vegas, according to the lawsuit.

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