Skip to comments.CA: Compton probes sale of land to group tied to embattled SEIU local
Posted on 09/06/2008 10:01:24 AM PDT by NormsRevenge
The Compton city attorney's office is investigating a $1-per-lot sale of government land to a housing corporation that failed to receive the tax-exempt status it sought and is associated with a Los Angeles labor union mired in a spending scandal.
The housing group was established as a nonprofit in 2004, but never received an Internal Revenue Service exemption and had lost its right to do business in California for not filing its tax returns, The Times disclosed last month.
It was founded under the direction of Tyrone Freeman, president of the Service Employees International Union local, whose financial practices are the subject of a federal criminal investigation and a congressional inquiry.
Friday's announcement of the Compton probe is the latest fallout from Times reports on the local, a related worker-training charity and the housing corporation.
Compton sold the Long Term Care Housing Corp. two parcels for $1 each in the belief that it was a tax-exempt nonprofit, said City Atty. Craig Cornwell. "We're trying to get to the bottom of this," he said.
Freeman has taken a leave of absence from the local, the United Long-Term Care Workers, and could not be reached for comment Friday. He has previously said he did nothing wrong.
A trustee now running the local, John Ronches, said in a statement that the disclosures about the housing corporation were "deeply troubling" and that the union would cooperate with Cornwell.
Ronches said the union is conducting its own examination, with the help of former California Atty. Gen. John Van de Kamp.
Attempts to interview officials for the corporation were unsuccessful Friday. In response to Times inquiries, a law firm for the group said last month that it had filed all its tax returns, regained the right to do business and was again seeking the IRS exemption.
(Excerpt) Read more at latimes.com ...
Before long, IMO, SEIU will be found to be the most corrupt union we have ever had, even more so than the Teamsters under Hoffa.