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 This material may not be published, broadcast, rewritten or redistributed.)

Comments (8)
  1. it's me says:

    Gotta love diversity. salibi ababwa. bababa wabowabi

  2. richie kotzen says:

    oh yeah.. it would sound a lot better if the suspect’s name was john smith..

  3. Lisa Williams says:

    John Smith or Leroy Brown would not have been able to get the contract because the cities would have thought them dishonest.

  4. Bebe says:

    Good. With all of our problems the last thing we need to do is tolerate fraud. But “it’s me,” don’t be a racist. Con men come in all colors, creeds and nationalities. In fact, the Governor of Florida presided over a company when it committed the largest case of Medicare fraud in US history. And he’s about as WASPy as they come.

  5. Karen says:

    Bebe – which governor of Florida?

    My take is that foreigners are the only people who have money these days which is how they can fund these projects.

    Many foreigners and illegal aliens are stealing us blind on all levels.

  6. Me says:

    People trust me they just knew how to talk their way through the city plus giving city officials what ever they wanted didn’t hurt

  7. kenny says:

    then maybe you need to get an education. and get a degree so u stop complaining about the ones who are smart. aint no one stealling you blind. .maybe you are just dumb.

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