A former high-ranking Los Angeles Constructing and Security official who claimed he was fired after alleging fraudulent billing and different wrongdoing will obtain a $3-million settlement from the town.
Steve Ongele had sued the town, alleging whistleblower retaliation after he was terminated from his job in 2019. For the prior six years, he had raised issues about allegedly unlawful and unethical practices on the Division of Constructing and Security, in line with the lawsuit.
In response, metropolis officers repeatedly scaled again his duties and finally fired him, the go well with claims.
The Metropolis Council voted 12 to 0 on Wednesday to approve the $3-million settlement. Councilmembers Monica Rodriguez, Kevin de León and Curren Value have been absent.
Ongele’s legal professional, Greg Smith, declined to remark. A consultant for Metropolis Atty. Hydee Feldstein Soto didn’t instantly present remark.
The $3-million settlement follows a string of scandals on the Division of Constructing and Security. A onetime constructing inspector was sentenced to 2½ years in jail in 2014 following a federal investigation into bribe-taking.
In 2018, a number of workers within the division’s know-how providers bureau resigned amid an inside investigation into unauthorized purchases and falsified invoices. That investigation additionally revealed that some workers have been subjected to uncommon types of punishment by their rapid supervisor, together with consuming a whole pizza inside a brief time period, in line with a personnel report ready by the town.
Ongele served as chief of Constructing and Security’s Useful resource and Administration Bureau, overseeing contracts, buy orders and charges.
In 2017, he questioned an almost $300-million surplus that was the results of the division overcharging its prospects, together with the federal authorities, in line with the lawsuit. Then-general supervisor Frank Bush didn’t take motion, the lawsuit alleged.
Bush, who has since left the division, has beforehand denied Ongele’s claims.
Just a few years earlier, Ongele informed the then-executive officer, Raymond Chan, that the division was amassing extra charges than it was spending. Research wanted to be performed to make sure the charges have been justified and the town wasn’t violating the regulation, Ongele claimed within the lawsuit.
In response, Chan put his arms up within the air and replied, “Arrest me,” in line with the lawsuit.
Chan was discovered responsible this 12 months in an unrelated federal prison case involving former Metropolis Councilman Jose Huizar and downtown actual property builders. Chan was sentenced final week to 12 years in jail on racketeering conspiracy, bribery, fraud and different costs.
An legal professional for Chan didn’t reply for a request for remark Wednesday in regards to the claims in Ongele’s lawsuit.
Ongele, who joined the town in 2000, additionally alleged in his lawsuit that an individual who was associates with Chan submitted a declare for a refund of greater than $160,000 for work performed for a number of buildings.
Ongele refused to approve the declare as a result of it didn’t meet the necessities for a refund. It was later accredited by one other constructing division government, who informed Ongele, “This is for Ray’s friends,” or phrases to that impact, the lawsuit alleged.
In 2016, Chan turned deputy mayor for enterprise improvement beneath then-Mayor Eric Garcetti. Chan then sought cash from the Division of Constructing and Security for raises for his employees in addition to new furnishings and computer systems for the mayor’s workplace.
That cash was taken from particular funds meant for use just for actions associated to constructing permits and plan checks, in line with Ongele’s lawsuit.
The go well with additionally alleged that in 2016 Ongele realized that a number of workers on the constructing division had been paid additional time illegally over a number of years. Ongele reported the knowledge to Bush and “insisted that the employees refund the money,” in line with the lawsuit.
Ongele complained to Metropolis Council deputies and aides to Garcetti after he spoke out and his job duties have been lowered, however nothing was performed, his lawsuit claimed.
In the meantime, Ongele was additionally sidelined in the course of the 2018 inside investigation into the purchases and invoices, in line with the lawsuit.
When he tried to reveal the fraud, which amounted to about $4 million, to the town controller’s workplace, he was instructed by his supervisor to state that solely $300,000 was misappropriated, the lawsuit stated.
In 2018, the L.A. County district legal professional’s workplace additionally opened an investigation into the allegations. A spokesperson for the district legal professional didn’t instantly present remark Wednesday in regards to the standing of the investigation.
