Los Angeles firefighters’ union leadership misappropriated over $800,000 in credit card expenditures, leading to suspensions and a financial takeover after findings of rampant financial abuse and potential fraud.
Key Takeaways
- LAFD union president Freddy Escobar and top officers were suspended after an audit revealed $800,000 in undocumented credit card transactions spanning from 2018 to 2024
- President Escobar alone made nearly 2,000 transactions totaling $311,497, with over 70% lacking proper documentation
- The International Association of Fire Fighters appointed a conservator to take over the union’s operations following discoveries of charity fund misuse and improper overtime payments
- Escobar reportedly earned $540,000 in 2022 by doubling his base salary through questionable overtime and union stipends
- IAFF’s investigation began after the union’s new treasurer flagged concerning financial irregularities despite previous audits highlighting deficiencies
Massive Financial Mismanagement Uncovered
The president and top officers of the Los Angeles Fire Department’s labor union have been suspended following a damning audit that uncovered over $800,000 in undocumented credit card expenditures. The International Association of Fire Fighters (IAFF) investigation revealed that Union President Freddy Escobar made 1,957 transactions totaling $311,497.58 between July 2018 and November 2023, with more than 70% lacking proper documentation. Of these transactions, $230,466 had no documentation whatsoever, while an additional $35,397 was only partially documented, raising serious questions about where union members’ dues were actually going.
The financial impropriety extends beyond just Escobar. Former Secretary Adam Walker and former Treasurer Domingo Albarran Jr. were implicated in over $530,000 of additional undocumented transactions during the same period. The investigation determined that a staggering $265,862.34 in union dues were spent without any proper documentation, making it impossible to verify the legitimacy of these expenditures. Vice Presidents Chuong Ho and Doug Coates were also suspended for failing to enforce union financial policy, demonstrating a complete breakdown in leadership accountability and oversight of members’ funds.
Union Placed Under Conservatorship
In response to these alarming discoveries, the IAFF has appointed a conservator, John Bagala, to take control of United Firefighters of Los Angeles City (UFLAC) Local 112’s operations and implement responsible financial practices. The move comes after new treasurer Jason Powell raised concerns about improper recordkeeping, triggering the investigation. What’s particularly troubling is that previous audits had already highlighted significant deficiencies in the union’s financial practices, yet Escobar and other officers continued their irresponsible spending habits despite explicit warnings from auditors about the need for proper documentation.
“The leadership of UFLAC has abdicated its fiduciary responsibilities and placed Local 112 in ill repute. The financial malpractice by the leadership of UFLAC has dealt serious harm to the membership,” said IAFF General President Edward Kelly.
The investigation went beyond credit card misuse, uncovering even more disturbing allegations. Former Secretary Walker allegedly misappropriated funds from the union’s charity for personal expenses, adding a particularly egregious layer to the financial misconduct. This not only represents potential fraud but betrays the trust of those who donated to what they believed was a charitable cause supporting firefighters and their communities. The breadth of financial misconduct suggests a systematic pattern of abuse rather than isolated incidents of poor record-keeping.
Self-Enrichment at Members’ Expense
Perhaps most shocking to union members and taxpayers alike are reports that Escobar and other officers allegedly padded their paychecks with questionable overtime and union stipends. Escobar reportedly earned approximately $540,000 in 2022 alone, more than doubling his base salary through these additional payments. This revelation paints a picture of leaders using their positions to enrich themselves while failing to maintain even basic financial standards for the organization they were elected to serve. The system appears to have been manipulated to benefit those in power at the expense of rank-and-file firefighters who faithfully paid their dues.
“Serious problems” needed to be addressed to “restore responsible financial stewardship and guarantee the fulfillment of UFLAC’s legitimate objectives,” said IAFF General President Edward Kelly.
The conservator’s appointment marks a critical turning point for the union, with the immediate task of implementing proper financial controls and rebuilding trust with members. The suspended officers will remain sidelined as the investigation continues and potential legal consequences are considered. This scandal highlights a troubling pattern seen in too many labor organizations where lack of transparency and accountability creates opportunities for financial abuse. For Los Angeles firefighters who dedicate their lives to public service, this betrayal by their own leadership is especially bitter.
