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Los Angeles city council member accused of directing $950k in public funds to his wife’s company

Los Angeles city council member accused of directing $950k in public funds to his wife's company

A veteran member of the Los Angeles City Council is facing trial over allegations that he funneled nearly $1 million in public funds to his wife’s consulting company. Karen Price, who is 75 years old, has been ordered to stand trial on multiple counts of felony corruption, which include conflict of interest, embezzlement, and perjury.

The prosecution claims that Price voted on various city matters that involved his wife, Delbra Pettis Richardson’s consulting firm, Del Richardson & Associates. This firm specializes in providing relocation assistance and community services to developers and public agencies.

Price, often described as a humble figure in South Los Angeles, has served in office for over a decade, primarily working in one of the city’s less affluent areas. Throughout his tenure, he advocated for city funding aimed at enhancing neighborhood infrastructure, affordable housing, and social initiatives.

Recently, a judge determined that there was sufficient evidence for the case to move forward, making Price one of several prominent City Council members now facing serious corruption allegations.

From 2019 to 2021, Richardson’s firm reportedly received more than $950,000 from various sources, including developers and city agencies, while pursuing contracts with the city.

Prosecutors allege that Price backed significant funding applications for both Metro and the Housing Authority without revealing potential conflicts of interest. The court noted that his staff had not alerted him to these issues before his votes.

Further allegations include the misappropriation of approximately $33,800 in city funds through improper enrollment of Richardson in taxpayer-funded health insurance while he was married to another woman.

Price is also accused of pushing through leases and over $2 million in federal COVID-19 grants to a nonprofit that worked with a company where he served as CEO.

During the trial, evidence was presented which indicates that Price’s deputy chief of staff failed to manage the potential conflict of interest adequately. Questions arose about the communication around these issues, with discrepancies noted regarding how information was shared—often via informal channels rather than official ones.

This isn’t the first instance of corruption involving a City Council member; in 2023, another elected official received a lengthy prison sentence for related offenses. Los Angeles County District Attorney Nathan J. Hochman described the decision to advance the case against Price as a crucial step towards accountability for alleged corruption within the council. An arraignment is slated for March 13 at the Foltz Criminal Justice Center.

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