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JLAC
Report
In This Section:
Behavior | Spotlight | Aftermath |
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California State Legislature's Audit Committee considers Irving Moskowitz's
casino development and his behavior in Hawaiian Gardens.
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In
July 2000, after a lengthy investigation, the Chairman of the California
state legislature's Joint Legislative Audit Committee released a damning
investigation of Irving Moskowitz's activities in Hawaiian Gardens, concluding
that Moskowitz had "co-opted" the Hawaiian Gardens government to advance
his own private interests – most notably the funding and permitting of his
casino.
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News reports on the
JLAC investigation
Settler
Sponsor Target Of Probe
by Lawrence Cohler-Esses
12 November 1999
The Jewish Week
After
learning that the Joint Legislative Audit Committee staff had finished preparing
its report on Moskowitz, Cohler-Esses reports that "The probe, by the legislature’s
Joint Audit Committee, will look into Moskowitz’s drive to start up a local
casino seen by Jewish critics as a potential source of new revenues for his
Jerusalem efforts. The casino’s financing, which includes government redevelopment
funds, is being probed under the committee’s broad mandate to investigate
reports of government corruption and waste. Cohler-Esses also reports that
"sources close to the investigation say Moskowitz’s activities in Hawaiian
Gardens were first brought to its attention by the Coalition for Justice
in Hawaiian Gardens and Jerusalem, an unusual coalition of local Jewish
activists, Hawaiian Gardens residents and others who decry his role in both
cities."
Panel Investigating
Hawaiian Gardens
by Joe Segura
06 November 1999
Long Beach Press-Telegram
After
the state’s Joint Audit Committee launched its probe into Moskowtiz’s dealing
with the city of Hawaiian Gardens, Segura reported: “The JLAC chairman has
ordered city officials to provide documents on their dealings with Moskowitz
over the past 10 years. The committee's probe focused on "possible noncompliance"
with a state law that prohibits any form of direct assistance to a gambling
business. The city’s Redevelopment Agency has been involved with Moksowitz
for the past few years in an effort to build a multi-million-dollar card
club.”
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The JLAC chairman's report noted serious irregularities about Moskowitz's casino:
- "The
redevelopment project is an inappropriate use of redevelopment funds because
it appears to violate California Health and Safety Code Sections 33426.5.”
- "The
project is inappropriately located, as it places a gambling operation adjacent
to a middle school, a hospital, a place of worship and public park.
- "The project evolved from a highly irregular and apparently improper process.
- "The
redeveloper [Moskowitz] successfully co-opted the Cities and Agencies efforts
to fulfill a public interest for his own private interest.
- "The
redevelopers attorney made a series of misleading and often contradictory
statements to public officials in order to benefit his client."
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The report's recommendations included:
- "Local,
State and Federal law enforcement agencies should investigate for criminal
or corrupt activity associated with the Hawaiian Gardens' "Gateway Gardens"
project.
- "Because
the project appears to violate state law, the redeveloper should reimburse
the entire subsidy to the Agency. The reimbursement should reimburse the
entire subsidy to the Agency. The reimbursement should include any and all
fees that the developer's attorney claimed to be due from the Agency as a
result of acting as special counsel to the Agency.
- "The
State Bar of California should consider whether its current Rules of Professional
Conduct adequately protect public entities and prevent subversion of the
public interest when private attorneys represent both their private clients
in dealing with a public entity as well as the public entity itself."
[Read
the Executive Summary of the report]
[Download the complete report (in .pdf format)]
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A state Joint Legislative Audit Committee report shines a spotlight
on the Moskowitz casino project.
The state Joint Legislative Audit Committee’s report on Moskowitz’s
Hawaiian Gardens gambling operation released on July 6, 2000, prompted many
publications to report on the problems of Moskowitz's casino and his role
in Hawaiian Gardens.
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Corruption
in Hawaiian Gardens? Legislator's report urges criminal investigation
of casino owner Irving Moskowitz
by Tom Tugend, Contributing Editor
21 July 2000
The Jewish Journal
“Moskowitz
has long been a controversial figure in Hawaiian Gardens, a tiny, low-income
city in southeast Los Angeles County, where he operates a bingo club and
a card casino, and in Jerusalem, where he has bankrolled Jewish settlements
in Arab neighborhoods.” This local Jewish weekly summarized the report’s
findings, noting that Moskowitz “consorted with a public agency to operate
an illegally financed casino.” This article also contains a history of Moskowitz’s
dealings in Hawaiian Gardens.
State Indicates
Wrongdoings in Hawaiian Gardens Casino Deal
by Kathy Lee Scott
12 July 2000
The News-Enterprise
Another
local paper weighs in, this time summarizing the JLAC’s findings and explaining
that Moskowitz violated the law, obtained illegal funds, and should give
millions back to the community. This article contains the most concise summary
of the casino deal.
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Moskowitz
Blasted in California
by Akiva Eldar, Ha'aretz Correspondent
16 July 2000
Ha'aretz
“The
report states that ‘Hawaiian Gardens is an example of what can go wrong when
redevelopment is manipulated or used for the benefit of one individual rather
than for the benefit of the community as a whole.’”
This article summarizes
the findings in the JLAC report, and explains that Rabbi Haim Dov Beliak
wants Moskowitz to give the public funds he used to build the casino back
to Hawaiian Gardens.
Report Alleges
Spending on Card Club by City Illegal Hawaiian Gardens: State legislative
panel says $4 million went illegally to help build casino. Club owner's
lawyer says deal was legal.
by Hugo Martin, Times Staff Writer
10 July 2000
Los Angeles Times
Hawaiian
Gardens illegally spent about $4 million in public funds to help Moskowitz
build a casino, according to the JLAC report. Moskowitz's attorney, Rabbi
Haim Dov Beliak and attorney general Bill Lockyer's office all have their
say in the report’s findings. Lockyer later stated his contempt for the report.
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Editorial
-- Hawaiian Gardens report: Damning, incomplete and biased
by Long Beach Press-Telegram
13 July 2000
Long Beach Press-Telegram
This
editorial argues that the Joint Legislative Audit Committee's report made
some disturbing discoveries about Moskowitz's business practices. "In
hindsight, the City Council-Redevelopment Agency may have made some missteps.
Having Moskowitz's attorney also do legal work for the city was an unorthodox
arrangement," it says. And "Moskowitz didn't create the city's financial problems, but he surely capitalized on them."
But, as if to walk a tight-rope, it also argues that the casino is earning
money for the city (and, it might have mentioned, for the newspaper, which
carries its ads)
Moskowitz
accused of operating illegal LA casino
by Tom Tugend
16 July 2000
The Jerusalem Post
Moskowitz
conspired with a public agency to operate an illegally financed casino, according
to the JLAC report. But Tugend reports that Moskowitz’s ties to the city
stretch way beyond that.
Casino May
Be Funded Illegally
by Joe Segura, Staff Writer
07 July 2000
Long Beach Press-Telegram
The
state’s JLAC urges Hawaiian Gardens to stop all business with Moskowitz,
after a report found that his casino was illegally financed.
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February 20, 2001: Coalition calls on Attorney General and District Attorney for action on peculiar loan by Hawaiian Gardens City Council [.pdf format] |
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Aftermath of the JLAC Chairman's Report
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A hearing on the JLAC report
Irving
Moskowitz' lobbyist fought hard to block the JLAC report from going before
the state legislature's full audit committee, which might have decided to
act on the report's recommendation for further investigation. The Moskowitz
organization did succeed in blocking a full committee hearing on the report.
When the chairman, Scott Wildman, tried to convene a subcommittee to consider
the report, Assembly Speaker Robert Hertzberg removed him as chair of the
committee. Nevertheless, on September 18, 2000 Wildman and two other legislators
convened a hearing and heard almost five hours of testimony from people harmed
by Moskowitz' use of Hawaiian Gardens' resources to build his casino. |
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Casino
Hearing Set
by Joe Segura, Staff Writer
25 August 2000
Long Beach Press-Telegram
This
local newspaper reports that the Joint Legislative Audit Committee set a
Sept. 18th hearing on Moskowitz's dealings with Hawaiian Gardens and was
considering looking into a recent bond deal that helped finance Moskowitz
bingo operation. The paper noted that Hawaiian Gardens officials went to
Sacramento to persuade JLAC to ditch the report. Coalition leaders, who were
also in Sacramento, heard the bond underwriter tell committee members that
the bonds buyers were threatening action because the city hadn't disclosed
the JLAC investigation.
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Power
Play: Assembly Speaker Robert Hertzberg Muzzles a Chief Critic of
Casino Owner Dr. Irving Moskowitz
by Ron Russell
28 September 2000
New Times LA
Russell
reports on an unofficial Joint Legislative Audit Committee hearing dealing
with Moskowitz's casino in Hawaiian Gardens. It also goes over some of the
findings in the JLAC's report on the casino.
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Maverick
Hearing Adds to Dispute on Hawaiian Gardens
by Joe Mathews, Times Staff Writer
19 September 2000
Los Angeles Times
Matthews
reports on an unofficial Joint Legislative Audit Committee hearing dealing
with Moskowitz's casino in Hawaiian Gardens. The story also covers over some
of the findings in the JLAC's report on the casino.
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