Saturday, 10 February 2018

LOOTING THE PUBLIC TREASURY (crime story)

After graduating from UCLA, Albert Robles served terms as mayor, councilman, and deputy city manager of South Gate, California, an industrial community about 12 miles outside downtown Los Angeles. Soon after Robles became city treasurer in 1997, he plotted to rule the city purely for his own benefit. He even proclaimed himself “King of South Gate” and referred to the city as his “fiefdom.” Once in power, Robles got involved in a number of convoluted illegal schemes, including:
Using the city’s treasury as his “private piggy bank for himself, his family, and his friends” (according to acting U.S. Attorney George Cardona), costing South Gate more than $35 million and bringing it to the verge of bankruptcy
firing city hall employees at will, replacing them with supporters who had little experience
Recruiting and bankrolling unqualified local supporters for city council until he controlled the council 
Threatening anyone who stood in his way (suspiciously, one of his adversaries on the city council was shot in the head)
Robles and his corrupt cronies then cooked up schemes to line their own pockets with the public’s cash. In one such scheme, Robles coerced businesses to hire a financial consultant, Edward Espinoza, in order to win various city contracts, including senior housing and sewer rehabilitation projects. As part of this plan, Robles and Espinoza set up a shell corporation that raked in some $2.4 million—more than $1.4 million of which went straight into Robles’s pockets. He used part of the money to buy a $165,000 beach condo in Baja for his mother; he also forked over $55,000 for “platinum membership” in a motivational group. In another scheme, Robles steered a $48 million refuse and recycling contract to a company in exchange for more than $30,000 in gifts and campaign contributions. In February 2003, Robles was targeted by a federal grand jury looking into the handling of federal loans and grants. FBI and IRS investigators pored over city records to uncover his illegal schemes. The citizens of South Gate ultimately voted Robles and his cronies out of office (but not before he racked up huge legal bills at the city’s expense), and he was convicted at trial in July 2005. Two of his business associates—including Espinoza—also went to prison. Robles’s illegal acts were the product of careful plotting and planning. They were motivated by greed and not need. To some criminologists, stories like these confirm the fact that many crimes are a matter of rational choice.


Sources: Federal Bureau of Investigation, “Corruption in City Hall: The Crooked Reign of ‘King’ Albert,” January 8, 2007

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