Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
Seal Beach among Calif cities allegedly defrauded by Southland company
Seal Beach has joined the list of a dozen California cities that has lost money by using a Huntington Beach-based financial company to hold escrow funds, and federal prosecutors are now looking into the company, it was reported Saturday.
Rehab Financial is accused of embezzling $450,000 in grant money from Seal Beach, one of many cities that contracted with Rehab to hold federal money from the Federal Community Development Block Grant Funding and Redevelopment Agency housing funds, Seal Beach police told the Orange County Register.
Seal Beach has contracted with the company since 2006, the Register reported. Westminster, La Habra and Buena Park also contracted with Rehab Financial but it unclear who much federal money grant money was taken from those cities, the newspaper reported.
Officials also reported that Rosemead, Buena Park, Huntington Park and Seal Beach have filed police reports on the incident.
Support for LAist comes from
The investigation into Rehab was started after the company's president, Belinda Exon, and its office manager, Barbara Wood, stopped returning phone calls and abruptly cleared out their Huntington Beach office.
Seal Beach police Sgt. Steve Bowles told the Register that the city is working with the U.S. Attorney's office to recover the funds. He added any contractor who performed work for the city that was expected to be paid by
grant money will be compensated.
San Francisco was also among Rehab's customers and city officials there said the company illegally used $1 million of its grant money that was set aside to be used for low-income housing, the San Francisco Weekly reported. San Francisco filed a lawsuit against Rehab Financial March 30.
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
With less to prove than LA, the city is becoming a center of impressive culinary creativity. -
Nearly 470 sections of guardrailing were stolen in the last fiscal year in L.A. and Ventura counties.
-
Monarch butterflies are on a path to extinction, but there is a way to support them — and maybe see them in your own yard — by planting milkweed.
-
With California voters facing a decision on redistricting this November, Surf City is poised to join the brewing battle over Congressional voting districts.
-
The drug dealer, the last of five defendants to plead guilty to federal charges linked to the 'Friends' actor’s death, will face a maximum sentence of 65 years in prison.
-
The weather’s been a little different lately, with humidity, isolated rain and wind gusts throughout much of Southern California. What’s causing the late-summer bout of gray?
Best of LAist