West Los Angeles VA Home To $11M Bribery, Money Laundering Scheme

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West Los Angeles VA
Photo of West Los Angeles VA from Genaro Molina / Los Angeles Times

A Santa Monica parking lot mogul was arrested for defrauding West Los Angeles VA and paying off a VA employee in a bribery and money laundering scheme.

Richard Scott, owner of Westside Services, is accused of using two sets of books in a money laundering scheme where he skimmed West Los Angeles VA out of $11 million. The mogul amassed a large fortune valued in multiples of millions and lived a lavish lifestyle facilitated by his fraud through Westside Services.

RELATED: Feds Stop Opioid Theft Scheme Implicating 3 VA Employees

Scott reportedly bribed West Los Angeles VA contract administrator Ralph Tillman to cover up the deception in the money laundering scheme. In 2014, Tillman retired but his retirement did not stop him from continuing to take “hush money.” Curiously, he has not been charged at this point.

RELATED: Homeless Lawsuit Against West Los Angeles VA Will Proceed

Federal agents seized luxury property and items including a Cigarette racing boat he kept at a property in Miami and three luxury vehicles including a Ferraris, Corvette, two Mercedes and a Shelby Super Snake Mustang. He also had a collection of condominiums valued at $2.3 million each.

According to LA Times:

Two years later, a federal judge ruled that the VA had abused its discretion by leasing land for purposes “totally divorced from the provision of healthcare.” The VA agreed to settle the case by ending non-veteran-focused leases and developing the property as a model veteran community, with at least 1,200 housing units. 

Under Scott’s lease, the lots were used to store construction equipment, rental cars, buses and car dealership and film production vehicles. Scott also ran event parking for UCLA’s baseball stadium, the L.A. Marathon, a golf tournament and the Brentwood and Wadsworth theaters.

Scott, who paid himself $3.1 million a year and ran up exorbitant travel and entertainment expenses, amassed three Santa Monica condominiums valued at $2.3 million each, a house in Malibu and brokerage accounts, Torbic alleged.

RELATED: VA Says Vets Should Not Use Their Appellate Rights

There is a growing trend of prosecutions and investigations into rather large fraud schemes involving contractors and the Department of Veterans Affairs. With any stroke of luck, the DOJ will continue rooting out fraud schemes like these.

Source: http://www.latimes.com/local/lanow/la-me-ln-parking-operator-charged-20171109-story.html

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Warhorse
Warhorse

Cover photo damn near looks like the Hotel California, we all know how that song turned out!! Great art Ben!!!!
Fuck VA, Fuck AFGE.

CorpsmanUp!
CorpsmanUp!

I second that notion! FUCK VA , FUCK AFGE and thst nurse over there with those big old titties! 😉

Seymore Klearly
Seymore Klearly

CorpsmanUp! “FUCK VA , FUCK AFGE and thst nurse over there with those big old titties! ” really

You don’t recognize that guy over there? It’s one of Ash Carters Tranny friends.

“https://www.advocate.com/sites/advocate.com/files/2016/06/30/sparta-with-secdef-x750.jpg”

namnibor
namnibor

Stunt titties. Spellcheck? Really? Stunt Teaties? Nope. Stunt Tittys? Nope. The tale of stunted titties. (nope)

namnibor
namnibor

whoops. damn electric neuropathic fingers!

91Veteran
91Veteran

Isn’t that Shulkin with the titties?

Seymore Klearly
Seymore Klearly

I don’t think so if you notice he doesn’t have the drugged out droopy eye lids that shulkin is always sporting.

Seymore Klearly
Seymore Klearly

“https://www.gannett-cdn.com/-mm-/e73ca0bbc2187863551c77388e9976dacf369c25/c=0-177-2167-1802&r=x404&c=534×401/local/-/media/2015/06/24/Morristown/B9317844687Z.1_20150624194203_000_GI2B60TU5.1-0.jpg”

namnibor
namnibor

“Verse 3, Hotel California, The Eagles”
“[…Mirrors on the ceiling, the pink champagne on ice
And she said: “We are all just prisoners here of our own device”
And in the master’s chambers, they gathered for the feast
They stab it with their steely knives, but they just can’t kill the beast
Last thing I remember, I was running for the door
I had to find the passage back to the place I was before
“Relax,” said the night man, “We are programmed to receive
You can checkout any time you like, but you can never leave!”

I also think the same could be found with the VA’s Paris 5 star hotel if one looked hard enough.

Seymore Klearly
Seymore Klearly

The Paris VA’s 5 star Hotel named the Pershing Hall owned by the VA when under former president Clinton they approved the $100 Million remodeling job using VA party bucks. Then leased it out on a 99 year lease to none other than “LA Partners”.

“The VA owns a five-star boutique hotel in Paris, and Congress isn’t happy about it”, Martin Matishak, The Fiscal Times, Dec. 11, 2015, 10:02 PM

“http://www.businessinsider.com/the-va-owns-a-five-star-boutique-hotel-in-paris-and-congress-isnt-happy-about-it-2015-12”

“Colorado Representative Mike Coffman to VA: Sell 5-star Paris hotel Veterans Affairs owns”, By: Deb Stanley, Posted: 12:25 PM, Jun 11, 2015

“http://www.thedenverchannel.com/news/politics/colorado-representative-mike-coffman-to-va-sell-5-star-paris-hotel-veterans-affairs-owns”

“Representative Mike Coffman (R-Colorado) is telling the Department of Veterans Affairs to sell its five-star hotel in Paris to help fund the cost overruns at the Aurora VA hospital.

“Sell the hotel in Paris; build the hospital in Aurora,” said Coffman in a statement sent to 7NEWS. “The VA needs to make hard decisions to fund their mismanagement, and selling a five-star foreign hotel is a great place to start.”

“While the VA owns the hotel, it is currently leasing it to a private company, L.A. Partners, on a 99-year lease ending in 2097, Coffman’s office said.”

Crazy elf
Crazy elf

No wonder, [especially with all corruption, waste, fraud and abuse within VA], Secretary’s of VA past to present had/has to ask Congress for more taxpayers monies!
Y’all know damn well these kinds of “SCAMS” are, more likely than NOT, occurring in other states and countries WITHIN the VA!

So, against – “FUCK THE VA” AND THE “AFGE”!!!

Seymore Klearly
Seymore Klearly

Guess we all now know why Judicial Watch had to file a second lawsuit to try and find out who is making the money of some of the businesses using the Veterans Property in Los Angles.

“https://www.judicialwatch.org/press-room/press-releases/judicial-watch-files-second-lawsuit-veterans-affairs-information-non-veteran-use-massive-west-los-angeles-va-facility/”

Their Filings on behave of their Client Robert Rosebrock was fighting the some serious federal charge brought against him by the VA at the time of their filings.

“Rosebrock had been charged with desecrating the VA grounds by hanging the displaying the two napkin-sized American Flags on a section of the fence adjacent to the Great Lawn Gate at the entrance to the Veterans Park. Rosebrock attorneys pointed out that in the past the grounds had been repeatedly used for such events as bike races, running marathons, and Halloween Parties.

Rosebrock ,75, and fellow veterans, have been assembling at the site nearly every Sunday and Memorial Day since March 9, 2008, to protest what they believe is the VA’s failure to make full use of the valuable West Los Angeles property for the benefit and care of veterans, particularly homeless veterans.

Judicial Watch attorney Sterling E. Norris, a former Los Angeles County deputy district attorney, and Los Angeles-based defense attorney Robert Patrick Sticht are representing Rosebrock, who faced up to six months’ imprisonment if found guilty on the flag-hanging charge.

“https://www.youtube.com/watch?v=Ageq7HjnRQs”

Seymore Klearly
Seymore Klearly

“JW: Court Finds ‘Flag Man’ Not Guilty of Federal Crime for Displaying US Flag on VA Fence ”

“https://www.youtube.com/watch?v=vH8gqVl_AC4”

91Veteran
91Veteran

I wondered on another comment if this was the same property.

Given the amount of money involved, the length of time it has gone on and the property involved, I highly doubt one civilian parking lot operator and 1 corrupt bureaucrat were the sole people involved. How many other VA managers were being bribed to look the other way?

If we still had a functioning FBI, they would put the screws to the VA employee they caught, and get him to roll over on the others involved.

namnibor
namnibor

In all seriousness to today’s topic of VA fraud: honestly, going back past a decade now I recall *anytime* that LA Property (gifted to Vets), has been all but eminent domain by the county and State there and always been a shady-assed scenario because the VA was not following the ‘Will’ of the family that gifted it to Vets….and it’s just NOW coming-out? I am suggesting it’s only coming out because something like eminent domain is or was being tried as well…and I thought Sec. McDonald did something to help the situation but it was probably a lease deal to West L.A. Disney…

CorpsmanUp!
CorpsmanUp!

That is so ironic how VA dotes about Disney.
Walt Disney received a dishonorable discharge and use to play it upside down in the credits.

norman
norman

low life scumbags, worse than drug dealers

Dennis
Dennis

It is a historical fact in any corrupt government that at BEST 10% of the scams, cons, and cheats are ever detected publicly. Ben suggests that we need a stroke of luck as a nation to see this trend continue and presumably detect it all? hmmm…

I will support this idea and keep stroking for luck, because I honestly believe in the symbolism of the act and that it has a greater impact on rooting out corruption in VA as any other plan I have ever heard! I’m gonna get started right away…they say it’s good for PTSD. If I don’t report back, it was lucky.

namnibor
namnibor

Careful, too much luck has been known to cause temporary blindness where apogee of luck may meet the eye.

91Veteran
91Veteran

I read the LA Times article and others on this. Can anyone say if this is related to other land deals where the VA is using the land for commercial things rather than veterans?

It appears to be the case here, but I am wondering if this is the same as the other cases.

Now if we could only see these corrupt hacks prosecuted, we might see it slow down a little.

Or just remove their nuts with a cheese grater.

namnibor
namnibor

A very rusty cheese grater, please?

Crazy elf
Crazy elf

Y’all have got to watch the videos on these two articles!
1.
From; “Judicial Watch”
Dated: 15 Nov 2017 (9:00 minutes long)
Titled:

“The Forgotten Soldier”

This concerns the soldier denied a “Purple Heart” from the “Ft. Hood Shooting”!
_____________________

2.
From: “abc News” (w/video)
Titled;

“Transgender service member receives gender reassignment surgery”

By: Louis Martinez and Elizabeth McLaughlin.
Dated: 15 Nov 2017 10:29 AM ET.

This “soldier” received his surgery “…at a private hospital…” because the military doesn’t have the expertise!
While this is going on, at taxpayers expense, we veterans have to put up with inexperienced and incompetent healthcare providers. Whereas, since the VA can’t provide professional healthcare, why can’t we use “private [sector] hospitals” for our needs?

To this bullshit, I say: “FUCK THE VA AND AFGE!”

Warhorse
Warhorse

Ya know Elf, all the bullshit that goes on at VA would make a great TV series. Why not start out with a “ service person” who gets their wiener hacked off in taxpayer funded gender reassignment surgery. This “service person” then gets discharged, is hired by VA, and finally finds “love” with the rug munchers Rubens and Graves. Fucking ratings in the first episode would be staggering.
Yeah, I know I’m fucked up!!! LOFUCKINGL
Fuck VA, Fuck AFGE

namnibor
namnibor

^’American Horror Story: The VA Asylum, Loafing Meat Series’^

windguy
windguy

Lately, it has become rather difficult for me to not relate wealth with corruption, and government with corruption.

Juan Robledo
Juan Robledo

It’s no wonder why the VA is in shambles, it’s because of crooks like these that got caught now the courts should throw the books at these crooked SOB’S and have them repay the VA not only money owed but with interest and put them away behind bars

Don Karg
Don Karg

11/15/2017

Dear Benjamin Krause,

Obviously the higher ups knew about this.

It was an arrangement.

Sincerely,

Don Karg

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