The Los Angeles County Sheriff’s Department is currently reviewing its connections with a convicted Wall Street fraudster after discovering, quite surprisingly, that Daniel L. Gordon — a man known for his philanthropic efforts — had previously served time in federal prison for embezzling $43 million. Reports indicate that the department, led by Sheriff Robert Luna, was unaware of Gordon’s criminal background despite collaborating with his charitable organization for several years. Gordon’s prison sentence was for 3 1/2 years, and he is also responsible for nearly $60 million in unpaid taxes to New York.
Officials have noted that they are now evaluating their relationship with Gordon Philanthropies and are in the process of reaching out to former staff for more information.
It’s worth mentioning that Gordon had agreed to a lifetime ban from serving as an officer of a public company back in 2003 to settle charges linked to the Merrill Lynch theft and other misdeeds.
Los Angeles County boasts the largest sheriff’s department in the U.S., overseeing about 17,000 personnel that manage law enforcement across 42 cities and operate the largest jail system in the nation.
Despite the department’s size and responsibilities, it had partnered with Gordon’s charity for various jail programs and had used his image alongside high-ranking law enforcement officials to promote his charitable work.
Gordon Philanthropies has publicly displayed numerous images of him with law enforcement, including Sheriff Luna, during charity events. A notable instance was a ribbon-cutting event for a children’s library at Men’s Central Jail.
This partnership extended far beyond simple donations, as Gordon Philanthropies had also supported efforts aiming at improving programs for incarcerated individuals and enhancing safety measures for deputy personnel.
Subsequent to inquiries from The Post, the department has begun to reassess this partnership that has been in place for several years. A spokesperson confirmed this ongoing review, emphasizing the need to gather additional historical context.
This scrutiny comes just days before an election in which Sheriff Luna is up against former Sheriff Alex Villanueva. The timeline of when the partnership began and who authorized it remains unclear. Yet, Luna himself had participated in the recent opening of a library funded by Gordon’s charity.
The spokesman for Gordon has not provided clarity on what background information was shared with the Sheriff’s Department or the vetting process Gordon underwent. He suggested contacting independent securities attorneys rather than addressing those questions directly.
Moreover, despite his significant tax bill, Gordon lives in luxury in a $5 million mansion in Rancho Mirage, California, showcasing a stark contrast to his financial issues.
It’s notable that the LASD has specific regulations about partnerships with nonprofit organizations, which require senior officials’ sign-off and board member disclosures, though there’s no explicit mandate for criminal background checks of charitable contributors. They stated that it is essential to maintain a positive image when engaging in such collaborations.
While the department has stated that it possesses policies to ensure lawful partnerships, they have admitted that security checks are performed on individuals at custody facilities.
The sheriff’s office did not clarify whether Gordon underwent a criminal background check or what additional benefits his charity provided to the department.
The California Department of Corrections and Rehabilitation had previously lauded partnerships with Gordon Philanthropies, especially in establishing educational initiatives at fire camps for incarcerated women firefighters.
Meanwhile, Gordon’s financial troubles continue, as he faces new lawsuits that allege misconduct related to a business venture called Sagaliam Acquisition Corp. This is amid ongoing accusations that he violated his SEC ban by secretly controlling the company while using an elderly developer as a frontman.
Though Gordon has been recognized for his philanthropic efforts, such accolades grow increasingly complicated in light of his substantial debt and past fraudulent activities. California Governor Gavin Newsom has praised his charity work in the past, yet it remains unclear whether his office vetted Gordon’s background thoroughly.
As these events unfold, the pressure is mounting on both the Sheriff’s Department and Gordon as questions linger about their affiliations and the implications of his past actions.
