Ties to mayor raise eyebrows
August 17, 2003

HAWTHORNE: Some see a conflict in Louis Velez's council bid, but he says he can be an independent voice.

By Ian Gregor
DAILY BREEZE

By day, Louis Velez works at the Haw thorne School District alongside Hawthorne Mayor Larry Guidi, who is the district's facilities planner.  Come November, if everything goes Velez's way, he'll be spending two Monday nights each month sitting next to Guidi on the City Council dais.

The possibility of Velez winning one of the two open council seats this fall has elevated more than a few eyebrows, as observers question whether he could act independently as a councilman when he works so closely with Guidi. Critics say Velez would extend the mayor's already considerable influence on local affairs if he were elected to the council.

"To have this guy get elected, I think that's a conflict of interest," said Wally Blazicek, a Hawthorne insurance broker who unsuccessfully challenged Guidi for mayor in 2001.

Juliet Musso, an associate professor of public policy at USC, said she didn't know of any law that would prevent the two from serving together on the City Council. But she said the arrangement would be "uncomfortably cozy" and that the potential for a conflict of interest would exist.  "There's a real opportunity for abuse by the senior person," Musso said. "I would think that it's questionable whether you would be able to have a true independence of viewpoints between these two elected officials."

Velez, an affable man who handles accounting for the school district's facilities planning division, said he knew his professional relationship with Guidi would be an issue for some people. But he said he would have no trouble opposing Guidi politically.  "I have no problem posting my thoughts and going with what I feel," said Velez, 29, who was born and raised in Hawthorne. "If I feel strongly, I would have no trouble going against Larry."

Guidi introduces Velez as his "assistant" at the school district, but said Friday that they do not have a boss-employee relationship. He said he supports Velez's council bid, but answered "hell no!" when asked whether he would expect Velez to vote his way.  Don Carrington, the Hawthorne School District superintendent, said he, not Guidi, evaluates Velez's job performance. But Guidi's opinion has a bearing on Velez's reviews, Carrington said.

"I'm not going to deny that (Velez) works closely with Larry on these (school) projects," Carrington said. "If it became apparent that working conditions were somehow jeopardized, a reassignment (of Velez) would occur."

Guidi has forged close political links throughout the community.

His position as mayor — and wide-ranging connections with state lawmakers — makes him far more valuable than an average school district employee. The city and school district also have cooperated on several construction projects in recent years.  Guidi also has strong links to the Hawthorne School District's Board of Education — the panel of elected officials that runs the district for which he works. Trustee Nilo Michelin, whom Guidi supported in his 2001 election bid, is a deputy city attorney in Hawthorne.

Some people have predicted for months that Guidi was grooming Velez for a council seat, noting that Velez often appeared with the mayor at city events and even accompanied him on police ride-alongs.  Velez acknowledged that Guidi has helped him get involved with the community, but said it was he who approached Guidi about running for office — a claim the mayor echoed.

"I definitely did see the progress in the city and I thought I could have some input in it and have a positive impact on its growth," said Velez, who moved back to Hawthorne in October 2002 after living in Burbank for five years. "I said (to Guidi), 'What do you think the possibilities are of someone like me assisting on the council?' "

City Clerk Danny Juarez said he does not plan to ask the California Fair Political Practices Commission for an opinion on whether Velez would face a conflict of interest as a councilman. "This will be something that will be decided by the people," Juarez said.

Conflict of interest guidelines posted on the FPPC's Web site do not address the specific situation that Guidi and Velez would be in if they served together on the City Council.

Also running in the Nov. 4 election for City Council are incumbents Mark Schoenfeld and Ginny Lambert and former Councilman and Mayor Steve Andersen.

Publish Date:August 17, 2003

Originally published Thursday, April 26, 2007

D.A. investigators search home of Hawthorne councilman

An official says a "conflict of interest" allegation led to the action at the residence of Louis Velez, an ally of Mayor Guidi.

By Doug Irving
STAFF WRITER

Armed investigators swept through the home of a Hawthorne city councilman early Wednesday morning, searching for evidence in what officials described as an ongoing corruption probe.

The District Attorney's Office released few details of its investigation, but confirmed that it had focused on Councilman Louis Velez. Its agents also raided an unidentified business on Wednesday as part of that investigation.Velez has served on the council since 2003 and is a close ally of Mayor Larry Guidi. He hung up immediately when reached at home; other city officials did not return phone calls seeking comment.

The searches were part of an investigation into "alleged public corruption in the Hawthorne City Council," said Jane Robison, a spokeswoman for the District Attorney's Office. She refused to discuss that investigation further and would not say whether it involves any other Hawthorne officials.

But David Demerjian, head of the D.A.'s Public Integrity Division, said there was an "allegation of (a) conflict of interest" that brought investigators to the modest house where Velez lives.

That house is not owned by Velez, property records show, but by the family of a prominent developer in town, Mohamad Pournamdari. Velez has lived there, though, since at least early 2005, when he listed it as his legal mailing address on a state form.

Later that year, Pournamdari approached the city about annexing a piece of property to make it easier for him to build on it. Velez not only participated in those discussions, but made some of the motions to allow the development to proceed, meeting minutes show.

Reached by phone Wednesday, Pournamdari said he was unaware of the searches being carried out by the District Attorney's Office and had no comment on them.

If Velez's living arrangement is not the target of the investigation, other City Hall issues could be the cause of the scrutiny. In recent months, for example, Hawthorne has faced questions about its handling both of a trash contract and a towing contract.

Agents dressed in black uniforms and bulletproof vests arrived at Velez's door around 7 a.m. Wednesday to serve the search warrant. Neighbors said they heard nothing but were surprised to see unmarked cars equipped with police lights on their quiet, tree-lined street when they left for work.

At one point, investigators wearing white gloves searched Velez's new Dodge Ram pickup, parked outside the home.

At least half a dozen investigators worked inside the house for nearly four hours. When they left, they took with them a satchel, a file case, and a box marked "special issues"; it was not clear whether the items were theirs or had been taken from the home.

Investigators served a second search warrant on a business, but officials with the District Attorney's Office would not identify it or even say whether it's in Hawthorne. By law, documents explaining that search warrant and the one served at Velez's house can remain secret for at least 10 days, and could be sealed for much longer.

The Hawthorne Police Department referred all questions to the District Attorney's Office, saying its involvement went no further than a single patrol car posted at Velez's house. "It didn't involve us at all," said Lt. Tom Jester, a department spokesman.

The District Attorney's Office would not discuss what, if any, evidence it recovered during the searches.

Demerjian said nobody was arrested during the searches, but he would not say whether he anticipates any arrests as part of the investigation.

"Whether we uncover evidence of any crime, that has yet to be seen," he said.

The District Attorney's Office has had an eye on Hawthorne City Hall at least since last summer, when it called city officials and the entire City Council before a criminal grand jury.

At the time, the Hawthorne officials were told that the grand jury was meeting to gather facts and take their testimony. It was not the kind of grand jury that weighs evidence and decides whether to issue criminal indictments.

Details of those hearings have never been made public.

VELEZ INDICTED!

Updated Wednesday, July 25, 2007

Hawthorne councilman indicted

New, 11:45 p.m.: Hawthorne City Councilman, indicted on conflict of interest allegations connected with a local developer, is due back in court Aug. 7 for an arraignment.

From staff and wire reports

A Hawthorne councilman, who appeared in court today in connection with conflict-of-interest allegations in a grand jury indictment, was allowed today to remain free on his own recognizance pending arraignment.

Louis Velez is due back at the downtown courthouse to enter a plea on Aug. 7.

Deputy District Attorney Max Huntsman told Los Angeles Superior Court Judge Steven R. Van Sicklen the case involved an allegation of "conflict of interest." But the prosecutor said he could not comment further, given that the indictment has not yet been unsealed.

Velez's attorney could not be reached for immediate comment.

Armed investigators swept through Velez's home earlier this year to search for evidence in what a district attorney's spokesperson described then as an investigation into "alleged public corruption in the Hawthorne City Council."

David Demerjian, head of the District Attorney's Public Integrity Division, told the Daily Breeze in April that an "allegation of conflict of interest" brought investigators to the modest home where Velez lives.

Property records showed that the house is not owned by Velez, but by the family of a prominent developer in town, Mohamad Pournamdari, according to the newspaper.

The Breeze reported that Velez listed the home as his legal mailing address on a state form in early 2005, and that Pournamdari approached the city later that year about annexing a piece of property to make it easier for him to build on it.

Velez participated in those discussions and made some of the motions to allow the development to proceed, according to meeting minutes cited by the newspaper.

Originally published Wednesday, August 08, 2007

Hawthorne councilman denies conflict of interest charge

City official Louis Velez is accused of having a financial relationship with a developer. The prosecutor called charge appropriate. A detailed report about the investigation will be made public Aug. 17.

By Sandy Mazza

Staff Writer

Hawthorne City Councilman Louis Velez pleaded not guilty Tuesday to a felony charge of conflict of interest.

Velez appeared briefly before Judge Peter Espinoza in Los Angeles Superior Court. He was ordered to return Sept. 12 for a pretrial hearing at the Airport Courthouse.

Velez, 33, was indicted by a county grand jury last month for allegedly having a personal financial relationship with a local developer that conflicted with his public duties.

He was arrested July 25 and released on his own recognizance.

Velez lives in a home owned by developer Mohamad Pournamdari. He approved city building projects proposed by Pournamdari in his capacity as councilman while he lived in the home and paid rent to Pournamdari, according to city reports.

If convicted, Velez could face 16 months to three years in prison and a $1,000 fine. He also would be barred from holding public office.

Velez has not said whether he will seek re-election in November. The deadline to file nomination papers is Friday.

The Public Integrity Division of the District Attorney's Office spent about a year on its investigation of Velez but has not yet disclosed any details, including when it began, its focus and specific findings.

The indictment was unsealed Tuesday, and a detailed report about the investigation will be made public Aug. 17, officials said.

After the court hearing, Deputy District Attorney Max Huntsman said he believes the charge against Velez is appropriate.

"We believe people who are guilty of conflict of interest shouldn't be public officials," Huntsman said. "We believe that people should be able to have complete confidence in the decisions of their elected representatives. … Elected representatives should act in the public interest, not their own interest."

Velez's attorney, Steven Seiden, did not comment.

The indictment states that sometime from Jan. 11, 2005, to March 8, 2005, Velez became "financially interested in a contract made by him in his official capacity, and by a body and board of which the defendant was a member."

Planning Director Harold Roth, City Clerk Monica Di Crisci, City Attorney Glen Shishido, City Manager Jag Pathirana and Pournamdari were called to the grand jury for questioning, according to the indictment.

One of several projects submitted by Pournamdari that Velez voted to approve while he lived in his home was the purchase of a burned-out hotel on the northeast corner of Prairie Avenue and Imperial Highway. The property is in Inglewood, but falls under jurisdiction of Hawthorne's Redevelopment Agency.

The agency, made up of City Council members, voted to acquire the property through eminent domain and then sell it to Pournamdari, who wanted to build a hotel.

In a statement issued after Velez was indicted last month, Pathirana said the councilman pays rent that is "consistent with the current rental market value" to Pournamdari.

Velez consulted with the Fair Political Practices Commission and an attorney about a possible conflict of interest before moving into Pournamdari's home, Pathirana said.

"Velez was told that there were no legal obstacles to his participation in city deliberations concerning the developer's proposals," he said.

But Huntsman said some of Pathirana's statements were not true.

"I was surprised to hear that description of things," Huntsman said. "I believe the facts as described by the city of Hawthorne will not be found to be accurate."

According to school officials, Velez was placed on paid administrative leave from his full-time job in the maintenance and facilities division at the Hawthorne School District after his arrest. It is not clear when he will return to work.

Shelley Rose, assistant superintendent of human resources for the district, said she would not comment on Velez's status because it is a personnel matter.

Velez works with Hawthorne Mayor Larry Guidi, who is a facilities manager at the school district.

Comment:

This looks like a possible California Government Code Section 1090 violation/prosecution.  Read about Section 1090 on the California Attorney generals website here .