Embezzlement Investigation

The City of Pasadena is providing a variety of documents and information to help keep the public informed about the arrest of a former City employee regarding the theft of public funds and steps that the City has – and will – take.

A four-member City Council ad hoc committee has been established. The following city council members are on this ad hoc committee: Steve Madison, Chair; Victor Gordo, John Kennedy and Margaret McAustin. The mission of the ad hoc committee is to do the following:

  • Oversee, with the assistance of staff and outside counsel, the restitution of funds through civil/criminal litigation, insurance claim, or other means;
  • Receive updates on the personnel investigation being conducted by staff and outside investigator; and
  • Work collaboratively with the full City Council and the Citizen Task Force.

Additionally, a Task Force on Financial Administration and Internal Controls composed of seven highly qualified and respected community members has been created. The meeting dates of the Task Force and documents related to its work are listed on the link below.

A civil lawsuit has been filed by the City of Pasadena in Los Angeles Superior Court seeking recovery of funds. The Los Angeles District Attorney’s Office is handling the criminal prosecution arising from this matter. Finally, the City is conducting a personnel investigation into issues related to the theft of public funds. Because of the pending criminal prosecution, as well as the required confidentiality surrounding the personnel investigation, not all aspects of the investigation may be made public and it will take an undetermined period of time before this matter is concluded.

Letter to City from District Attorney’s Office

LA District Attorney’s Press Release

City Manager’s Letter to Employees

City Files Lawsuit Seeking Recovery of Embezzled Funds

Task Force Final Report

City Officials Share Details On Audit Into Embezzlement

KPMG Letter

KPMG Report Memorandum – Appendix A


KPMP Report – Exhibits

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Exhibit 2

Exhibit 1

For more information, contact the City Manager’s Office