Quantcast

SOUTHERN CALIFORNIA RECORD

Thursday, September 19, 2024

Former City Official Accused Of Embezzlement And Fraud

State Court
F47b1f05 1841 48fa a11e 0c8d6d7280cd

Judge | https://www.pexels.com/

In a dramatic turn of events, a former city official has been ordered to pay over $4 million in damages after being found guilty of exploiting his position for personal gain. The City of South Gate filed the complaint against Albert T. Robles in the Superior Court of Los Angeles County on January 12, 2006, seeking to recover funds that Robles had illicitly funneled to himself through a series of kickback schemes.

Albert T. Robles, who held multiple influential positions within the City of South Gate—including city council member, mayor, treasurer, and deputy city manager—was accused of manipulating the city's bidding process to benefit certain companies and individuals. In return for ensuring these entities received lucrative city contracts, Robles demanded kickbacks funneled through a consultant named Edward Espinoza. This scheme netted Robles over $2 million from various city projects, including housing developments and infrastructure improvements.

The case against Robles was built on detailed declarations from Espinoza and other city officials. According to court documents, Espinoza acted as an intermediary who would receive consulting fees from companies awarded city contracts. These fees were then largely redirected to Robles or entities he controlled. One such instance involved a developer paying Espinoza $1,825,000 for consulting services related to a housing project; Espinoza subsequently funneled $1,242,588 back to Robles and his associates.

Robles's criminal activities eventually led to his recall from office by voters in January 2008 and his termination as deputy city manager in June 2008 due to "numerous egregious acts" and "gross neglect of fiduciary responsibilities." He was federally indicted for public corruption shortly thereafter and convicted on multiple counts of honest services mail and wire fraud, money laundering, and bribery in July 2005. Although many convictions were later overturned due to changes in legal interpretations by the U.S. Supreme Court regarding honest services fraud (Skilling v. United States), his bribery convictions remained intact.

Despite these setbacks in criminal court, the civil suit pressed forward with the City filing a cross-complaint against Robles alleging breach of Government Code section 1090 (prohibiting financial interests in contracts made by public officials), breach of fiduciary duty, breach of Labor Code section 2860 (prohibiting employees from retaining anything acquired by virtue of their employment except wages), fraud, breach of employment agreement, unjust enrichment, and seeking declaratory relief.

In June 2021, the City moved for summary judgment supported by Espinoza's declaration detailing the kickback schemes. Although initially unopposed due to Robles's claimed mental health crisis during the hearing, he later hired an attorney who filed motions contesting the judgment on grounds including statute limitations and lack of evidence.

After extensive litigation including new trials and additional briefings ordered by Judge Olivia Rosales, the court ultimately granted summary adjudication on several claims: breach of fiduciary duty, breach of Labor Code section 2860, fraud, and breach of contract. The final judgment awarded the City $4 million plus interest for damages caused by Robles’s fraudulent activities.

Representing themselves at various stages were Albert T. Robles pro se for himself as appellant; Gordon Rees Scully Mansukhani law firm with attorneys Don Willenburg and Andrea K. Williams representing the respondent City of South Gate.

The case is identified under Case ID B325897 with Judge Olivia Rosales presiding over this landmark decision affirming accountability for public officials engaging in corrupt practices.

ORGANIZATIONS IN THIS STORY

More News