• Matt Esnayra

Scandal: Whistleblower alleges LB City Auditor Doud of misappropriating $1M of city funds

Photo via the LB City Auditor's office

A whistleblower alleges that Long Beach City Auditor Laura Doud was misappropriating over million dollars of city funds to a lobbying firm for unknown reasons, first reported by The Beachcomber.

Highlights: The whistleblower alleges in a 10-page report that for the past 15-years, City Auditor Laura Doud has been paying a political lobbyist firm Kindel-Gagan "$5,700 or $6,000 per month since 2006, "..." without providing any services or products."

  1. The payments currently total $1,018,500: The charges were sent to the Los Angeles bases political advocacy group, which according to The Beachcomber Doud, had a business relationship with one of the firm's partners Michael Gagan.

  2. The payments appear after Doud was elected City Auditor in 2006: The whistleblower writes in their complaint that "Based on my knowledge, research and inquiry, no actual services have been nor are currently being provided. There is no contract agreement that defines the services to be performed and the terms of the agreement, such as the consultant's hourly rates. "

  3. Doud was warned: According to The Beachcomber, people told Doud the Kindel-Gagan contracts were "going to be a problem," and that Doud was the lone contact with the lobbyist firm.

  4. The contract: According to the whistleblower, there were only invoices to Kindel-Gagan without any information describing the services.

The LA District Attorney's office is reviewing the complaint under its Public Integrity Division and the City of Long Beach is investigating the accusation, per the LB Post.

Keep this in mind:

Last year, Doud released an audit critical of the city's management of $23 million worth in repairs to the Queen Mary.

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