Tuesday, January 31, 2012

"Coliseum officials made $1 million in cash payments to union"

Now criminal investigators for the U.S. Labor Department are looking into the payments, people familiar with the matter say.

With no detailed accounting of what happened to the cash after it left the stadium, the Coliseum Commission does not know how much actually went to wages and whether required contributions were made to employee benefit plans. In addition, the stadium could be on the hook for hundreds of thousands of dollars in back payroll and withholding taxes.

It's as though the Coliseum was run "like an underground business," said Jessica Levinson, a Loyola Law School professor who studies government corruption. "This idea of cash in suitcases reads like a bad crime novel."

Finish reading the article in the LA Times

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