The International Association of Fire Fighters (IAFF) has intensified its scrutiny over the United Firefighters of Los Angeles City (UFLAC) following revelations of extensive financial mismanagement.
The union, which governs UFLAC, suspended President Freddy Escobar and two other high-ranking officials last month due to serious concerns regarding their handling of credit card transactions that lacked proper documentation.
An audit conducted by the IAFF uncovered inadequacies in how Escobar and his colleagues managed hundreds of thousands of dollars’ worth of expenses dating back to 2018.
Despite presenting a thumb drive filled with photocopied receipts and claiming these documents would clear his name, auditors concluded that Escobar’s accounting practices remained flawed.
In a recent letter reviewed by The Times, auditors revealed that even with the additional materials provided by Escobar, over $212,000 in credit card expenses still lacked adequate documentation.
According to the auditors’ findings, they did not receive complete access to UFLAC’s internal expense system during their initial review, which hindered a thorough investigation.
Following the auditors’ visit in December 2024, Escobar was found to have prompted his staff via email to search for missing receipts, indicating a rushed attempt to rectify issues related to his past expenditures.
The letter, signed by IAFF General President Edward Kelly and General Secretary Treasurer Frank Líma, emphasized that Escobar’s efforts to reconcile his transactions came too late.
In total, the audit evaluated 1,974 of Escobar’s credit card transactions, which amounted to $312,985.
Of these, only 889 transactions, totaling $100,824, were found to be fully documented with receipts and a clear business purpose attached.
In contrast, the initial audit revealed that out of 1,957 transactions, only 428 were documented correctly, accounting for $45,635.
The auditors reiterated that Escobar exhibited a persistent failure to fulfill his fiduciary duties, leading to a lack of controls for compliance with both state and federal laws regarding financial practices.
Escobar, however, denied any wrongdoing, asserting in a text message that the allegations stemmed from political motivations.
He claims the scrutiny comes in light of his criticisms regarding the underfunding and insufficient resources allocated to the Los Angeles Fire Department (LAFD).
Further investigations into the financial conduct of UFLAC officials revealed that two other suspended figures, former Secretary Adam Walker and former Treasurer Domingo Albarran Jr., had amassed more than $530,000 in credit card transactions lacking proper documentation.
The auditors did not revisit their findings concerning Walker and Albarran in this latest review.
UFLAC’s policies mandate the documentation of receipts for all credit card expenditures, with a requirement to explain the business context and participants involved in each transaction.
Vice Presidents Chuong Ho and Doug Coates were also suspended, accused of neglecting their responsibilities to uphold UFLAC policy.
In response to these overwhelming issues, the IAFF appointed conservator John Bagala, tasked with restoring financial oversight within UFLAC.
Bagala, a state representative for the IAFF and president of Marin Professional Firefighters, will focus on safeguarding the organization’s financial integrity and ensuring that it meets its legitimate objectives.
IAFF spokesperson Ryan Heffernan stated that the conservatorship aims to implement measures to prevent any recurrence of financial mismanagement.
Throughout this conservative oversight, the IAFF emphasizes its commitment to addressing critical member needs and protecting the funds contributed by their union members.
This situation underscores the ongoing challenges faced by labor unions in maintaining transparency and accountability in financial dealings.
image source from：latimes
