Saturday, October 27, 2012

Ex-LA Public Housing Official Gets 51 Months In $500K+ Ripoff; Coordinated w/ Brothers To Set Up Sham Companies To Pocket Cash Meant For ADA-Compliant Construction For Low Income Disabled Renters

From the Office of the U.S. Attorney (Los Angeles, California):
  • A former public official who orchestrated a conspiracy involving his two brothers that stole more than $500,000 from the Housing Authority of the City of Los Angeles (HACLA) was sentenced [] to 51 months in federal prison.

    Victor Taracena, 41, who formerly resided in Burbank, was sentenced by United States District Judge Percy Anderson. In addition to the prison term, Judge Anderson ordered Victor Taracena to pay $526,727 in restitution to HACLA.

    Victor Taracena managed HACLA’s construction program for public housing units occupied by disabled residents, and the money that he and his brothers stole was intended to build accommodations that complied with the American with Disabilities Act.

    In June, Victor Taracena’s two brothers – Diego L. Taracena, 37, and Bennett A. Taracena, 32, both of Burbank – each were each sentenced to 21 months imprisonment.

    All three Taracena brothers pleaded guilty earlier this year to conspiracy charges. As part of the scheme, Diego and Bennett Taracena established four sham companies to get contracts from HACLA. After establishing bank accounts for those sham companies, Diego and Bennett Taracena accepted $526,727 from HACLA over the course of 3½ years. Despite receiving the payments, the companies did not perform any actual work.