Low-Income Housing Developer Accused Of Stealing Millions From Taxpayers

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LOS ANGELES — A Los Angeles company that built more than 50 low-income housing projects in California is under federal investigation into claims that it bilked taxpayers out of millions and built potentially unsafe apartments.

A court-appointed receiver for Advanced Development and Investment Inc. reported that the company submitted phony bills to cities, failed to keep proper records on more than $650 million and transferred up to $80 million to personal bank accounts.

The Los Angeles Times says the report was turned over to the U.S. attorney's office and the company is under investigation by a federal grand jury and various agencies.

The receiver, David Pasternak, said Wednesday the company continues to operate but he doesn't expect it to take on any new low-income housing projects in the immediate future.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

LOS ANGELES (AP) – A Los Angeles company that built more than 50 low-income housing projects in California is under federal investigation into claims that it bilked taxpayers out of millions and built potentially unsafe apartments.

A court-appointed receiver for Advanced Development and Investment Inc. claims that the company submitted phony bills to cities, failed to keep proper records on more than $650 million and transferred as much as $80 million to personal bank accounts.

The Los Angeles Times says the report was turned over to the U.S. attorney's office and the company is under investigation by a federal grand jury and various agencies.

A call to the receiver, David Pasternak, on Wednesday was not immediately returned.

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Information from: Los Angeles Times, http://www.latimes.com

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