City explains to angry residents how $6M embezzlement went undetected for a decade
Angry at news that a former employee of the city of Pasadena, California, has been charged in a $6 million embezzlement scheme which went undetected for a decade, residents crowded a special city council meeting on Monday.
They heard that former management analyst Danny Wooten, 51, had allegedly taken advantage of an unusual city fund structure by generating false company invoices and requesting and authorizing checks for claimed underground utility work, reports the Los Angeles Times’ L.A. Now blog.
The checks actually went to Wooten, who was also responsible for reviewing the fund’s expense reports, and churches he had an affiliation with, authorities say. He and two friends who are also charged in the case have pleaded not guilty.
City manager Michael Beck told those at the meeting that the underground utility program was one of 131 city budget funds and said only some of the budget funds are checked during Pasadena’s audit each year. It isn’t clear from the Times article how the claimed $6 million theft came to light; Beck said Wooten was fired in July over an unrelated job-performance issue.
An audit is ongoing and measures will be taken to tighten the city’s financial controls, including requiring additional approval steps before payments are made, officials said.
Residents who attended the five-hour meeting were critical of the city, which has presented itself as a municipal governance model, the newspaper reports.
“This all sounds like a good job of closing the barn door after the horses are out,” said attorney Dale Gronemeier.
