LONG BEACH (CBS) — As Cal State students face another tuition hike this fall, a CBS2 News investigation has found tens of thousands of dollars of questionable spending by the chancellor’s office.

Cal State students are angry — angry over rising tuition.

Recent protests have included arrests and the use of pepper spray. Now some students are drinking just juice in a hunger strike.

But our hidden cameras found no shortage of catered food at the CSU Chancellor’s Office.

We obtained the CSU credit card statement from last year, uncovering tens of thousands of dollars in catered meals, plus expensive dinners and car service rides — mostly paid for by taxpayer money.

“I think that is completely ridiculous and that disgusts me, actually, as a student. They’re raising our tuition and eating nice meals and we’re suffering,” said CSU student Matthew Delgado.

There are nearly half a million students in the Cal State system statewide and more than 40,000 faculty. With California’s money woes they will all be hit by budget cuts.

There is talk of freezing enrollment and eliminating classes. Tuition will be going up 9 percent this fall, that is more than 300 percent over the past decade.

But that did not stop the spending.

An $840 bill from Erheart’s Catering is typical of some of the charges we found for food, which was brought in for meetings.

We uncovered receipts for breakfasts and lunches from Chicken Dijon to lasagna.

The meals were not expensive per person, but they added up to more than $110,000 in catering bills for 2011.

That is enough to pay tuition for 18 students for one year or to fund dozens of classes that are being canceled.

Sophomore Sarah Garcia, 19, is on the hunger strike. We asked her if she gets catered meals.

“No. My mom cooks for me sometimes,” Garcia said, laughing.

So far she has $8,000 in student loans and cannot even get the classes that she needs to graduate.

“I’m a deaf studies major and because my registration date was so late last semester, I wasn’t able to get any deaf studies classes. So I’m falling behind because there are no classes available and that $110,000. That would have funded tons of classes,” Garcia said.

We caught up to CSU Chancellor Dr. Charles Reed.
Students have made Reed the poster child for excessive spending by hanging banners on campus with his salary in clear view.

He also gets to live in a house paid for by the university and drive a state-funded car.

“What do you say to students and faculty when they see that and you’re asking them to make sacrifices,” I asked?

“Well our office is isolated, so to be much more efficient, we provide a lot of lunches and sometimes breakfast for all the 23 campus groups that come to our office to work,” Reed said.

But it is not exactly isolated. A Google search of the area showed at least 10 restaurants less than a mile from his office.

“What about the catering,” I asked Reed.

“I said that we provide meals to the employees from throughout the 23 campuses,” Reed said.

“But that’s tax money, isn’t it,” I asked?

“Sometimes it is and sometimes it’s not,” Reed replied.

It is not just catering. We found a receipt for 60 people at the Il Fornaio Restaurant in Manhattan Beach. The food cost almost $2,500. They had 35 bottles of wine for around $1,200. The total came to more than $5,000, which works out to $85 a person.

It was charged to a CSU credit card.

CSU policy states, “Operating fund may not be used to pay for alcoholic beverages,” but a university spokesperson emailed, claiming the dinner was paid with non-state dollars. We asked for proof, but she never provided any.

“This was on the CSU credit card,” I showed Reed.

“You know it’s reimbursed too,” he said.

Reed claimed he was not at that dinner, but according to another guest list, he was at this one at Scott’s Seafood Grill in Costa Mesa last February.

The check totals over $1,500 for 17 people, including eight orders of sea bass for $264. That comes to $33. There was also $240 worth of alcohol.

It was charged on a CSU credit card, but a university spokesperson said the money was reimbursed by the David and Lucille Packard Foundation as part of a $27,500 grant that went to a teacher preparation summit.

The meal, according to the guest list, was a pre-summit dinner.

Finally we uncovered receipts for car-service rides, mostly to the airport, totaling close to $10,000.

Conferences, like one at the Westin at LAX, cost taxpayers over $70,000.

All totaled, we found $766,890.32 charged on CSU credit cards last year.

That could pay tuition for 127 students for one year.

“Faculty find this sort of expenditures extremely disappointing, because they have been facing budget cuts for the past five years,” said Teri Yamada of the California Faculty Association.

But Reed said that there would be no changes.

“Is that money wisely spent,” I asked him?

“Absolutely,” he said.

LONG BEACH (CBS) — The chancellor of Cal State Long Beach got an earful from outraged students Tuesday night, as he threw a pricey party.

Assisted by an ear-splitting bullhorn siren, a couple dozen protesting students made their presence known outside the dinner at the home of Cal State Chancellor Charles Reed.

They chanted, “Reed, reed, stop the greed, give the students what they need.”

The students were angry about what they felt was outrageous spending by the leaders of the Cal State system at a time when students and faculty were being called upon to make sacrifices.

“So when you see them make decisions, like raise our fees by 9 percent and then raise the salary of San Diego State University President Elliot Hirshman by $100,000, there’s a clear, huge disconnect,” said Dave Inga, a graduate student at Cal State Fullerton.

Many of the Cal State leaders, who attended the dinner, including board of trustee members and some university presidents, were greeted at the sidewalk outside Reed’s house by the protestors.

Chancellor Reed, who greeted them at the door, kept his distance.

Reed was the subject of an exclusive report this week by CBS2/KCAL9 Investigative Reporter David Goldstein. The report exposed excessive spending on dinners and transportation, among other things, totally nearly three quarters of a million dollars.

“Alright, do we really need to spend $5,000 on a dinner or 35 bottles of wine,” one protestor questioned?

One Cal State Trustee, Steven Glazer, senior adviser to Governor Jerry Brown, walked out to talk with the student protestors.

“How can you possibly justify getting housing and car allowances when you’re making six figures and you’re telling your students, that are starving and getting put out on the street, that they’re not allowed to get classes. And that they can’t fight and that they can’t eat,” a protestor asked Glazer.

“I voted against all the pay increases for the university presidents over the past year. And I was happy that today, as a board policy, we have now frozen presidential salaries,” Glazer said to the crowd.

A spokesperson for the Cal State system said that the dinner was paid for with foundation funding, not out of taxpayer money.

The board of trustees will wrap up its two-day meeting on Wednesday.

» RELATED STORY: Investigation Reveals Questionable Spending By CSU Chancellor’s Office

LOS ANGELES (CBS) — Caltrans has suspended several veteran employees after a CBS2 undercover investigation caught them drinking alcohol while earning your taxpayer money.

It comes at the same time that the state has announced California’s budget deficit has swelled to $16 billion.

David Goldstein, CBS2 investigative reporter, caught workers drinking on the job and doing crossword puzzles.

“That’s beer number three…”

We caught these Caltrans supervisors drinking 32 ounce cups of draft beer while on state time! That’s nearly three cans in each cup! Drinking for hours while earning your taxpayer money!

Goldstein talked to John Amsler, a 21-year veteran of Caltrans. Last year, he was paid more than $95,000 in taxpayer money!

“What do you say to taxpayers? You’re doing this on the clock. The state’s billions of dollars in the hole, and you’re out here drinking?”

Most mornings we saw him and his Caltrans partner Kathy McGinn working on the widening of the 91 Freeway in Yorba Lind. He is McGinn’s supervisor. Both are surveyors.

Their shift is Monday through Friday, 6 a.m. to 2:30 p.m. with a half hour for lunch. On the days we watched them, they’d leave the job site around 11…and they would end up at Angelo’s Hamburgers in Anaheim. It’s an old-fashioned drive-in with waitresses on roller skates and cheap draft beer.

On May 10th, we saw their Caltrans truck parked outside the restaurant around 12:30.

On the patio, we watched as Amsler drank two 32 ounce beers in about an hour. That’s half a gallon!

Sitting next to him was another Caltrans surveyor supervisor Rick Camp. He’s been with the state for 31 years.

He also drank two beers. Camp works the same shift and makes about the same $95,000.

MdGinn sat with them but didn’t drink beet. When they left, she got in the driver’s seat of the Caltrans truck. Amsler is in the passenger seat. Camp drove away in his own truck.

“They’re sitting down and drinking already.”

On May 14, Amsler and McGinn were back at Angelo’s. With hidden cameras we watched both working on crossword puzzles for nearly two hours while earning your taxpayer money.

“That’s beer number three”

We saw Amsler drink. And drink. And drink. And continue to drink the 32 ounce draft beers for the entire time!

“He’s got them all stacked up.”

He stacked each one of the empties on the floor like a scorecard. And when it was all over this Caltrans supervisor consumer four huge cups. That’s equivalent to more than ten cans of beer!

This time, they left in McGinn’s personal car and again, she drove.

“Here we go”

The next day he was at it again from roughly 11:30 a.m. to 1:30 p.m.

“Beer number 3 delivered.”

We saw him drink three beers over the course of the same two hours.

“He just got a beer delivered to him.”

Again, he was joined by Camp who had two beers.

“I’m David Goldstein, with CBS2 News. We just videotaped you drinking three 32 ounce beer. Was that on state time? Caltrans time?” No, he said, I’m done.

Amsler claimed he had already clocked out. Even on the day we saw him at the restaurant in the Caltrans truck.

“We videotaped you last week when you came in the Caltrans truck. How can you do this on state time?”

He said, “I’m not doing it on state time.”

“What time did you clock out today,” Goldstein asks, “I’m done. I was done this afternoon.”

Goldstein said, “No, you’re still on the clock.” Amsler says, “No.”

“You’re in there drinking beer? Is this on state time?”

“No, this is my lunch time.”

Goldstein asks, “You’re drinking beer on your lunch time? Is that allowed per state policy, drinking beer on your lunch time?”

Camp didn’t answer but Caltrans says alcohol isn’t allowed anytime an employee is on the clock — whether at lunch or not.

“We saw you here last week. You’re drinking two 32 ounce beers.”

“It wasn’t me,” he insists.

“That was you last week. We have it on video. You want to see the video?”

At that point, the owner of Angelo’s pulled him away and turned on us.

“Mr. Camp, do you want to see the video? I’ll show you the video of you drinking beer last week.”

Angelo’s owner intervenes. “I’ll have you arrested for being on my property.”

He tries to block the camera. “Don’t put your hands in front of the camera.”

“This is private property!”

Goldstein repeats, “Don’t put your hands in front of the camera.”

“I’m not covering it up. Get of my property!”

Goldstein tells the owner. “We’re off your property.”

Goldstein asked the question again. “What do you say to taxpayers who are paying your bill?”

The owner called the police on us and Camp snuck out, leading his truck to be picked up by another Caltrans employee who also claimed he was off the clock.

“You sure?”, Goldstein asked.

We went to the Caltrans office to try to find a supervisor to see how it could happen but no one wanted to talk — all we got was doors slammed in our face.

Goldstein was escorted to the door. “You need to go,” he was told. “Why, this is a public office.”

We did see McGinn off in the distance but she didn’t want to talk.

Ms. McGinn, can we talk with you about your two-hour lunch today?

“He stacks them on the ground.”

Eventually, reports Goldstein, Caltrans officials agreed to look at the video and have opened an investigaton.

Said Caltrans, “if the allegations made by your video are substantiated and our investigation shows the workers did violate Caltrans rules on drinking on the job, we will fire them.”

She confirmed that they were all on the clock from 6 to 2::30 p.m. when we saw them drinking — except Camp. On May 15th when he somehow put in two hours of vacation.

Isn’t it a little suspicious, that you’re telling me he took vacation hours in the same hours we saw him drinking? Goldstein is told, “As I said, it is under investigation.”

Today, Caltrans announced that because of what we uncovered, all three have been placed on 15 days unpaid leave until the investigation is complete.

David Goldstein, CBS2 News

LOS ANGELES (CBS) — Caltrans has started the process to fire two supervisors, who made nearly $100,000 in taxpayer dollars last year, after a CBS2 investigation caught them drinking on the job. A third employee was also facing termination.

Our investigation caught two of the workers drinking 32-ounce cups of beer on state time and doing crossword puzzles.

For three days cameras captured them working on the widening of the 91 Freeway in Orange County in the morning. Then around 11 a.m., they would leave the job site and end up at Angelo’s Hamburgers in Anaheim.

On May 14, John Amsler, a 21-year veteran of Caltrans, was captured on video drinking four 32-ounce drafts for two hours while he was on the clock. He denied it.

Fellow Caltrans employee Kathy McGinn did not drink, but for the same two hours, she could be seen doing crossword puzzles.

A third employee, Caltrans supervisor Rick Camp, joined them and also drank two beers on two different days.

A statement issued by Caltrans says “all three employees have been served their termination papers.”

They were on unpaid leave until their exact termination date, which Caltrans had not yet released. The employees could appeal their firing.

RELATED POST:
» Caught On Tape: State Workers Drinking Beer While Earning Your Taxpayer Money

LOS ANGELES (CBS) — Police in downtown Los Angeles are cracking down on parking meter cheats. Specifically they’re targeting people who illegally use disability placards to get away with free parking.

CBS2 Investigative Reporter David Goldstein was on hand to watch the crack down.

“Are you disabled?”

“Nooooo.”

This man isn’t disabled. Neither is this woman. Or this woman.

But all were caught using disabled placards that allow them to park for free.

“You’re using it to scam the city and not put money in the meter, right?”

Officials say the placards are showing up all over the downtown area. Some being used by people who aren’t really disabled. It’s that misuse that’s costing the city hundreds of thousands of dollars a year.”

Look at this one block. Watch as we speed up the camera. We found 13 or 15 cars displaying disabled placards! That’s 86%. Some may be here legally — others may not.

With the placards, you don’t have to feed the meters.

That will save you $3 an hour downtown.

But the DMV says it’s illegal to use someone else’s placard. However police say many people are doing it.

A task force was set up. “This morning we’ve identified several areas in the Civic Center area which we will be initiating enforcement action for the disabled placards.”

Officials former the task force to try and combat the problem.

“The first thing you ask them is, ‘Is this your placard?’”

It consists of investigators from the City Department of Transportation, the DMV and LAPD.

“So all the investigators, you guys will be issuing the misdemeanor citations.”

DMV investigators will be writing citations that could run up to $1,000.

“In order to be successful getting these citations fills, what we gotta do is we gotta make sure you see the person with the placard.”

The Task Force was formed by a LA City Councilman Dennis Zine.

“In the downtown area, it’s out of control. You will seldom find a parking spot that doesn’t have the placard.”

They break off into teams and hit the streets.

We followed two undercover as they waited for people to park using a disabled placard.

“Good morning, Sir. I’m Sergeant Garcia with the Department of Transportation. Can I look at your placard?”

Many people produce documentation showing the placard is issued to them.

“You’re okay. Thank you for cooperating. We’re just making sure that you do get the privilege that is extended to you and that other people that are not, we catch.”

Others like this woman were caught using someone else’s placard. And received a citation.

“Why are you using the placard?”

She said she didn’t speak English.

“Am I gonna get arrested?”

This man wasn’t arrested but was also nabbed — using his girlfriend’s placard.

“So he was using it improperly because it was hers?”

“Correct. He put it up, walked away from the vehicle, never made an attempt to feed the meter. Therefore he utilized it for the privilege that he doesn’t have.”

The placard was confiscated and he was cited.

“You’re using it improperly and you’re not feeding the meter, too?”

“I know, look at the consequences. I have to pay for that now.”

“It’s a rip-off of the system and it’s affecting the disabled community that really needs to have the parking and it’s also taking money away from the general fund. that helps operations to make the city work properly.”

In all, investigators wrote 14 citations — they confiscated 13 disabled placards in a three-hour period.

And hopefully, they sent a message that the placards are a privilege — and not a perk to park for free.

David Goldstein, CBS2 News.

By Charles Feldman, KNX 1070 Investigative Reporter

LA CRESCENTA (CBS) — Southern California fire officials have been looking east the past few weeks at raging fires in Colorado and worry that a similar conflagration here might severely test fire fighting agencies that have had to slim down due to budget cuts in the past couple of years.

“Whether it be at the federal, state or the local level, we’ve all had to take come significant budget reductions,” says Julie Hutchinson, a Cal Fire spokesperson.

Because the past two years have been relatively quiet in terms of wildfires in Southern California, Hutchinson says “we haven’t had to test” how budget cuts have impacted the efficacy of the various fire fighting departments.

But drought conditions here, combined with vegetation that has not burned for some two years, say fire officials interviewed by KNX 1070 NEWSRADIO, may be setting Southern California up for a fierce fire season.

Cal Fire alone has suffered some $80 million in cuts in the past two years. Though Hutchinson says the agency has mostly been able to avoid compromising its initial “attack capability,” she says, Cal Fire is now getting to the point where “we are having to give up some equipment and some personnel that could really impact us.”

Three Years After Station Fire, U.S. Forest Service Dragging Its Feet: U.S. Congressman

The historic Station Fire of 2009 burned through more than 250 square miles of land north of Los Angeles, proving to be the biggest and most deadly in a series of wildfires that summer.

Yet, nearly three years later, the U.S. Forest Service tells KNX 1070 that it has still not completed a promised evaluation and report on the possibility of using its own aircraft at night to fight raging fires.

Rep. Adam Schiff , a Democratic congressman from Burbank, said “It’s appalling to me, almost on the 3rd anniversary of the beginning of that fire, and we still not only don’t have an answer from the Forest Service, but assuming the answer is yes, they’ve made no progress in terms of getting that technological capacity; doing the training; and, that’s going to require additional time.”

Currently, the Forest Service contracts out for night flying fire fighting.

Schiff has gone so far as to include language in an appropriations bill that would compel the Forest Service to complete and deliver its report on night flying within 90 days of the bill’s enactment.

In an interview with KNX 1070 NEWSRADIO, Tom Harbour, the director of fire and aviation management for the U.S. Forest Service, says the agency has no planned date to release its promised report and that it is still being worked on – this despite pressure from Schiff and other lawmakers.

Mutual Aid May Be Difficult This Year

Mutual aid pacts among various fire fighting agencies serve as the backbone for a system designed to deal with either one huge out of control blaze, or a series of smaller wildfires breaking out nearly simultaneously.

But budget cuts have introduced a degree of uncertainly into this equation. “What we rely on is the fact that we can call upon them in our time of need, ” says LA City Fire Department Captain Jaime Moore.

But, he says, there’s “no guarantee they are going to be able to send us those resources. “And, that’s the risk we are taking.”

The LA City Fire Department itself has 18 fewer resources (fire engines and trucks) out in the field than it did only two years ago, says Capt. Moore. He says the lost equipment is in “reserve status,” but the department now has 110 fewer fire fighters in the field, Capt. Moore says, than it did in 2010.

LA County Fire Chief Daryl Osby tells KNX1070 that despite $50 million in cuts, he remains confident his department can handle any wildfire outbreak, though he echoes the concerns of Capt. Moore of the LA City Fire Department that mutual aid agreements could be severely tested should this turn out to be a potent fire year for Southern California.

“It’s yet to be seen that when we have a major incident, will they be able to commit fully as they’ve done in the past based on certain budgets,” Chief Osby says.

LOS ANGELES (CBS) — The Los Angeles Department of Water and Power wants to raise water and power rates, but a CBS investigation found the utility failed to collect millions of dollars in revenue – including money owed by the husband of one of Mayor Antonio Villaraigosa’s top administrators.

David Goldstein, investigative reporter for CBS2 and KCAL9, found that in more than two years Maurice Levin had not paid more than $56,000 owed in back rent on property leased from the DWP, a city agency. Levin refused to pay even though his wife, Randi Levin, reports directly to the mayor as general manager of the city’s information technology department.

Levin runs a garden in North Hollywood and leases property from the DWP. The land is located underneath high voltage power lines that hum day and night.

Levin said he paid his rent up until a few years ago when he just decided it was too much and stopped. Since then, the Department of Water and Power has done nothing about it, and the property bill now tops $56,000.

“They say I owe them that?” he said.

When questioned if he found anything wrong with that, Levin replied “Wrong with what?” and denied any issue with his wife being a city department head.

“It has nothing to do with that,” Levin added about his spouse’s official role.

Councilman Dennis Zine thinks it does.

“It’s outrageous,” said Zine. “To be married to a general manager in the city of LA — an example of leadership — that’s outrageous.”

This investigation is not the first time Levin has been in the news. In April, CBS2 reported how Levin got his car out of police impound after his wife called LAPD Chief Charlie Beck.

When questioned about the appearance of improprieties regarding a second incident, Levin turned the talk back on the reporter.

“Are you about real news or the appearance of impropriety?” he said.

After CBS2 filed a public records request for a copy of Levin’s lease, the DWP admitted there were many other instances where they failed to collect rent.

The DWP says the utility is owed $2.4 million in delinquent payments from leaseholders. This amount is money they never attempted to get — even though it is now proposing a 10 percent hike in electric rates during the next two years, and a 5 percent hike in water rates.

“I’m concerned about that,” said Mayor Villaraigosa. “I think the department has to make a case for why these people still owe this money.”

In a statement the DWP’s Joe Ramallo said, “Due to multi-year hiring freezes and budget cuts, staff resources were inadequate to keep pace with the workload.”

But now they’re attempting to catch up. Weeks after CBS2′s public request, the department filed papers to try to evict Levin, a move he says he will fight.

David Goldstein, CBS2 News

LOS ANGELES (CBS) — Randi Levin, one of Mayor Antonio Villaraigosa’s top managers, resigned Friday two days after a CBS2 investigation revealed her husband owed the Los Angeles Department of Water and Power more than $56,000, at the same time the municipal utility asked consumers to pay a huge rate increase.

In all, CBS2 investigative reporter David Goldstein found the DWP had more than $2.4 million in uncollected funds. Despite already owed that money, the agency also wants a 10 percent hike in power and a 5 percent hike in water rates.

Randi Levin made more than $200,000 a year reporting directly to the mayor as general manager of the city’s information technology department.

Levin’s husband, Maurice, owed DWP more than $56,000 in unpaid rent for land he leased for a garden in North Hollywood.

Goldstein asked Maurice Levin why he owed so much and if he felt he was being treated unfairly by the agency to justify not paying. “Absolutely,” he replied.

In April, Goldstein reported on another scandal involving the Levins. Randi Levin called LAPD Charlie Beck after her husband’s car was impounded.

Goldstein asked Maurice Levin if he felt there was an appearance of impropriety a second time involving his wife. He shot back, “Are you about real news, or the appearance of impropriety?”

CERRITOS (CBS) — The ABC Unified School District was unable to reach an agreement on a settlement Tuesday in a case filed by former Stowers Elementary School Principal Eileen Blagden.

Blagden was demoted from her position two years ago after she reported a kindergarten teacher at Stowers allegedly told her he wanted to kill two other teachers and end his own life.

“It has been the worst nightmare,” Blagden told CBS2’s Stacey Butler. “They knew it was wrong and they covered it up.”

She reported the alleged threats to the ABC Unified School District and a district representative told her not tell anyone, especially the other teachers or the police.

“She said if you report this, you’ll be sorry,” Blagden said.

The former principal says she was concerned after she found out the teacher had been arrested more than once for lewd behavior and indecent exposure. She then told the teachers he allegedly threatened not to come to work and filed a police report.

Gary Smuts, former Unified School District Superintendent, told Blagden’s attorney in a sworn deposition her demotion was not to cover-up the allegations, it was because she refused to follow what she was told after the district representative decided not to take action until she found out if the threats were real.

“I believe she wanted to verify that Eileen got the statements correct before she brought trouble or problems or concerns to people,” he said.

Blagden’s case against the ABC Unified School District is scheduled to go to trial in the fall.

LOS ANGELES (CBSLA.com) — One of the nation’s biggest banks is denying allegations of possible energy market manipulation in Southern California and throughout the state.

KNX 1070′s investigative reporter Charles Feldman reports the allegations comes just as a two-week-long heat wave has sent electricity consumption levels soaring.

The allegations from the California Independent System Operator (Cal ISO) – which runs over 75 percent of the state’s power grid – target profits made off the state by the energy trading division of banking giant JPMorgan Chase.

Cal ISO’s Stephinie McCorkle said the Federal Energy Regulatory Commission (FERC) launched an investigation in June into alleged energy market manipulation by Chase in California and 11 other states nationwide.

“At this point, the financial impact from this adverse market behavior that we identified and stopped amounts to about $73 million in our opinion,” said McCorkle.

In a court filing, Chase denied the allegations.

The charges come over a decade after traders with the now-defunct Enron Corporation took billions out of the pockets of Californians during the energy crisis of 2001.

McCorkle said state regulators are determined to prevent another Enron-type crisis from occurring again as they await the results of the investigation.

“We just absolutely will not tolerate any actions in our market that that threaten fairness and just prices,” she said.

LOS ANGELES (CBSLA.com) — The former Los Angles City Commissioner charged with possessing child pornography, initially blaming it on his alleged split personality, is now reportedly agreeing to plead guilty to the crime.

“Hi, Mr. Abrams, can I talk with you sir?”

CBS2 investigative reporter David Goldstein tried to talk with Albert Abrams about the charge.

Last year, the former president of the city board of neighborhood commissioners — appointed by the mayor — had plenty to say. He blamed the child porn pictures on his alleged split personality.

“Do you remember looking at kiddie porn?” Goldstein had asked Abrams.

“I was watching myself in a distance watching it,” Abrams said.

“Watching yourself in a distance?” Goldstein asked.

“Yes,” Abrams said.

Abrams resigned his post after CBS2 News reported that the FBI raided his Tarzana home, and found hundreds of images of child pornography on his computer. He allegedly went by the online name “Boywonder USA.”

“Did you go by the name ‘Boywonder USA’?” Goldstein asked Abrams.

“Yes, that’s what my split personality decided to do, but that’s what happens when you have tumors,” Abrams said.

The 64-year-old claimed it was due to a recent tumor on his spine. The FBI didn’t buy it.

“Mr. Abrams, how’s the tumor?”

In February, Abrams was arrested and pleaded not guilty.

But, Abrams now has signed a plea agreement, according to a copy obtained exclusively by CBS2. He will plead guilty to one count of distribution of child pornography.

Abrams will move from his million-dollar Tarzana home to a federal prison, even though he told Goldstein, last year, that he doesn’t deserve it.

“Should you pay for this with jail time?” Goldstein asked.
“Oh, I don’t think so,” Abrams said.

“Why not?” Goldstein asked.

“I’m not a criminal,” he responded.

Abrams is scheduled to stand before a federal judge and admit guilt this Friday. He faces from five to more than eight years in prison.

» RELATED STORY: Former LA City Commissioner Arrested On Possession Of Child Porn

» RELATED STORY: LA City Commissioner Blames Possession Of Child Porn On His Medical Condition

LOS ANGELES (CBSLA.com) — The former head of a Los Angeles city commission pleaded guilty Friday to federal charges of distribution of child pornography.

As part of a plea agreement, 64-year-old Albert N. Abrams acknowledged collecting more than 600 images of child pornography over the course of more than 10 years.

After his house was searched in 2011, he told CBS2/KCAL9 Investigative Report David Goldstein that a now-excised tumor on his spine left him with a split personality that compelled him to do what normally would have been out of character.

Goldstein spoke to Abrams Friday as he walked into the courthouse.

“Will you admit you lied to me when you said that a tumor made you watch kiddie porn,” Goldstein said.

To which Abrams replied, “Absolutely not.”

Abrams was charged last February in an eight-count indictment that accused him of distributing, receiving and possessing child pornography.

The collection contained images of children under 12, including infants, “engaging in sexually explicit conduct” and portraying “sadistic or masochistic” activity, according to the agreement filed in Los Angeles federal court.

Abrams didn’t speak at the hearing other than to respond to the judge’s questions, including whether he understood the rights he was giving up.

“I plead guilty, sir,” Abrams said when U.S. District Judge R. Gary Klausner asked.

In exchange for the guilty plea, prosecutors will recommend Abrams receive a sentence of between five and eight years in prison, lifetime supervised release, and a fine of $5,000, court papers show.

Klausner allowed Abrams to remain free on bond pending sentencing Dec. 10.

Abrams resigned in August 2011 as president of the seven-member Board of Neighborhood Commissioners, which oversees the neighborhood councils that link local communities with Los Angeles City Hall.

According to an affidavit filed in support of a search warrant, federal authorities looking into a peer-to-peer file-sharing network were able to download more than 150 videos and images depicting child porn from a computer at Abrams’ house.

RELATED STORIES:
»CBS2 Investigates: Former LA City Commissioner To Plead Guilty To Child Pornography Charge
»Former LA City Commissioner Arrested On Possession Of Child Porn

(©2012 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

CLAREMONT (CBSLA.com) — A local water company is asking ratepayers for a 24 percent increase in rates next year.

CBS2 investigative reporter David Goldstein asked Golden State Water to show how they’re spending customers’ money.

“Why won’t you turn over the records we requested? That’s what the ratepayers want to know,” Goldstein said to Sprowls.

“We’ve got nothing to hide,” Golden State CEO Robert Sprowls said.

When we asked to look into company expenses – copies of company credit cards, travel and entertainment expenses and country club memberships — the company refused to hand them over, because private companies don’t have to turn over records.

“Do you think they should have given us those records?” Goldstein asked Claremont resident and Golden State Water customer Hal Hargrave.

“If there’s nothing to hide why wouldn’t they?” Hargrave said.

Hargrave said his water bill has increased 5-6 times over the last decade.

And Hargrave has seen the charges on his water bill add up.

“Tier one water usage: $35.46,” said Hargrave, as he read off a charge from his water bill.

“I’d say 10 years ago, when I moved into this house, my normal bill was somewhere around $80-100 a month…Now, this past month, was $598,” Hargrave said.

After Golden State asked for a 24 percent increase in rates next year, Hargrave started a grass-roots organization called Claremont Outrage.

“It makes me sick to my stomach, absolutely sick to my stomach,” Hargrave said.

Golden State is the only provider of water in Claremont, located in east Los Angeles County. It also services Culver City, Simi Valley, San Gabriel and more than a dozen cities in Southern California, making it one of the state’s largest privately-owned water companies.

“My god, if you’re a shareholder you’re as happy as a lark as long as you don’t live in Claremont,” Hargrave said.

The stock of Golden State’s parent company, American States Water, is close to its yearly high. According to the company’s investor presentation, revenues keep going up. They boast of annual dividend increases for 57 consecutive years.

And according to Bloomberg Businessweek, Sprowls took in nearly $1.6 million in compensation last fiscal year.

“People I’ve talked to — excuse the expression — are outraged,” Hargrave said.

The proposed rate increase is not only affecting residents in Claremont; city leaders said the rate hike could affect the entire economy.

“Businesses call now wondering about our water rates before moving into town. There are citizens saying they’re going to leave Claremont because of the water rates. And, I think, it’s just unfair,” Hargrave said.

“Would you like to see how they spend their money?” Goldstein said.

“Yeah, I’d like to see it,” Hargrave said.

“I spoke to ratepayers and they say it’s only fair that you show how you’re spending their money because you’re asking for rate increases. How do you respond to that?” Goldstein asked Sprowls.

“We provide all the information through the PUC. They regulate us,” Sprowls said.

The PUC – Public Utilities Commission — has to approve any rate hike. Its division of ratepayer advocates reviewed Golden State’s request and determined the company only deserved a little more than an eight percent increase; they reached a settlement of around 15 percent.

Sprowls said his company needed to improve the system.

“We’re replacing infrastructure every day and that costs money,” the CEO said.

But whatever documents they gave to the PUC, by law, aren’t available to the public.

“Why not turn them over to me to make them public, so people can see them?” Goldstein said.

“We’ll give it some thought and get back to you,” Sprowls said.

“When do you think you’ll get back to me?” Goldstein said.

“I can get back to you in the next few days,” Sprowls said.

“Is that a promise?” Goldstein said.

“That’s a promise,” he replied.

Sprowls never got back to us.

We did receive an email from a public relations person hired by Golden State. He admitted Sprowls’ compensation is approximately $1.6 million as CEO of American States Water, but only a little more than $427,000 comes from Golden State and gets charged to taxpayers.

The spokesperson also said no employees get reimbursed for health or country club memberships. He claims company executives spent just more than $97,000 last year for travel, lodging and meal expenses, but they didn’t provide any of the documentation to back it up.

“I do think that’s information that should be available to the public,” Assemblyman Roger Dickenson, of Sacramento, said.

The lawmaker authored a bill that would make those documents open to the public.

“We need to know and have a right to know what the costs and expenses are,” Dickenson said.

The bill died in committee.

Nonetheless, ratepayers said they want to see proof of how their money is being spent.

It’s something the company seems reluctant to do.

“I hope you get back to me,” Goldstein said.

“We will. That’s what we do,” Sprowls said.

The city of Claremont is looking into the possibility of buying Golden State but there is no indication the water company wants to sell.

LOS ANGELES (CBS) — Budget crisis? CBS2 has found at least a half million dollars of your taxpayer money is going to city employees who are being paid not to work.

Investigative Reporter David Goldstein also uncovered the fact that this has been going on for years. Moreover, in his investigation he found out that city officials don’t even know how much money is being spent.

This LA City firefighter paramedic is getting ready to go surfing.

But it’s not David Schaefer’s day off. For two years he’s been on what’s called “administrative leave.”

He’s under investigation for something the department — and he won’t divulge. But he still collected a salary of $133,852 taxpayer money while the investigation drags on.

“You think that’s a good use of taxpayer money?,” Schaefer is asked.
“Is no comment appropriate?,” he says.

And he adds, “I don’t make the rules. I just do what I’m told. Is that a good enough answer for you?”

And he’s not alone. We obtained a database from the city and found dozens of employees getting paid while under investigation for extended periods of time.

This convention center electrician has been under investigation since last September — but he still collected more than $59,000 of taxpayer money to stay home.

This warehouse worker for the fire department — $35,000 while under investigation since last October.

And this cement finisher for general services — $47,000. He’s been 0n paid administrative leave since November 21st of last year.

“We’ve been following you for weeks at a time buying alcohol.”

This is that cement finisher.

“Can I get four?”

You may remember we caught Joe Loaiza last year on hidden camera drinking and driving a city truck.

“There’s the mayor’s car right there.”

Then sometimes working at the mayor’s house.

“We have it on video. Days and days of it.”

After this interview, he went on paid administrative leave.

Now, ten months later — his case is still pending and he’s still collecting his full salary of more than $1500 a week. And he’s not working at all.

The GSA personnel director told me “we’re working on resolving the case soon.”

“I don’t know if you saw that story or not?”

“I certainly heard about it,” said personnel director Raelynn Napper.

She keeps track of employees who get paid while under investigation.

I asked her why taxpayers should pay a year’s salary to someone under investigation? She said, “Some cases can be complicated and may involve other agencies. So it can take a while. But I totally agree. In most cases, it shouldn’t take this long.”

How much this is costing the city is hard to determine. In our database we found at least a half a million dollars in the last fiscal year paid to city employees who were under investigation and not on the job. But officials admit it could be a lot more because the employees are spread out over dozens of departments throughout the city.

I say, “that is a lot of money being spent on people who aren’t working.” She says, “Absolutely, and we’re working closely with the mayor’s office developing steps to address it and we’ve got a lot of ideas on how to fix it.”

Part of the fix is a new pay code called “L2″ — that would specifically label employees who were being paid while under investigation.

And the personnel department took control of 23 city agencies to try and move the investigation process along.

City Controller Wendy Gruel is tired of the waste of taxpayer money. “I have zero tolerance for any abuse of any city resources including theft of time.”

She adds, “Anyone sitting at home getting paid every single day, whether they’re guilty or not, I think is an abuse of the city system and we should ensure they’re not on leave for that amount of time.”

The city did stop paying Schaefer in June — even though he is still under investigation.

But again, taxpayers are still paying Loiaza — 10 months after investigators has this video and put him on administrative leave.

David Goldstein, CBS2 News

STUDIO CITY (CBS) – A CBS2 investigation found some Caltrans employees using Caltrans trucks rented with taxpayer money for their own personal use.

The workers have been using dozens of new $30,000 pickup trucks rented by Caltrans — even though the agency was ordered by Gov. Jerry Brown to reduce its fleet to save money.

Caltrans eliminated more than 1,300 vehicles under Brown’s directive, but it’s still renting as many as 200 vehicles a month.

Documents obtained by CBS2 showed monthly bills of more than $100,000 for the vehicles, which cost taxpayers $750,000 from Jan. to Sept. 2012.

Caltrans claims the trucks are used to conduct state business and can only be used for that purpose, but some employees do not appear to be following the rules.

Four workers were filmed using trucks for personal use, including Supervisor Sumner Baker from Colton.

Baker, who makes more than $100,000 a year, was seen driving a rented Caltrans truck to and from work.

On some days, Baker would leave his office a few hours after he got there and stop at a liquor store where he’d buy two small bottles of alcohol.

Baker was also caught using the truck to shop at Kohl’s, Home Depot, and Costco – he even bought a case of wine at Vons.

When he was confronted about using his work car for personal use, Baker said: “I have no more comments.”

His rented truck was later returned to the Caltrans yard.

CBS2 offered to show video of the employees using the trucks for personal use to Caltrans and Gov. Brown.

Brown accused CBS2 investigative reporter David Goldstein of withholding the video from him.

“Sir, you’ve concealed the tape,” said Brown.

“I’ll show it to you right now,” said Goldstein.

The governor then resorted to name-calling.

“This guy is like a thug,” said Brown.

However, the governor said he would get Caltrans on the phone.

Hours after that promise, Terri Kasinga from Caltrans agreed to look at the video.

“From what you’ve shown me on the video, it appears (like they’re using the cars for personal use), but we won’t know that until this investigation is complete,” she said.

Assemblymember Bonnie Lowenthal, the head of the House Transportation Committee, also watched CBS2’s footage.

“I don’t care who you work for. Buying wine on the job is unacceptable,” she said.

Caltrans released the following statement in response to the investigation:

“The video appears to show blatant abuses of state resources by certain Caltrans employees. Caltrans has already started a full investigation into the conduct shown in the video. The employee shown buying liquor has resigned. Any other employees who are found to have violated laws or department policies will be disciplined. In addition to the investigation, Caltrans is auditing how vehicles are dispatched to and leased by employees to ensure we are protecting taxpayer dollars. While the vast majority of Caltrans employees are hardworking and ethical, there are, unfortunately, a few exceptions.”

STUDIO CITY (CBSLA.com) — A Caltrans supervisor has resigned following a CBS2 investigation that caught some employees using Caltrans trucks rented with taxpayer money for their own personal use.

Documents obtained by CBS2’s David Goldstein showed Caltrans has been spending $750,000 of taxpayer dollars to rent the high-end vehicles after being ordered by Gov. Jerry Brown to reduce its fleet.

The trucks were only to be used for state business, but some workers were caught breaking the rules.

Sumner Baker of Colton stepped down as supervisor after being videotaped buying alcohol while driving around in his work truck.

Caltrans released the following statement in response to the Goldstein investigation:

“The video appears to show blatant abuses of state resources by certain Caltrans employees. Caltrans has already started a full investigation into the conduct shown in the video. The employee shown buying liquor has resigned. Any other employees who are found to have violated laws or department policies will be disciplined. In addition to the investigation, Caltrans is auditing how vehicles are dispatched to and leased by employees to ensure we are protecting taxpayer dollars. While the vast majority of Caltrans employees are hardworking and ethical, there are, unfortunately, a few exceptions.”

Gov. Brown also responded to CBS2′s Thursday report, in which he was heard referring to Goldstein as acting “like a thug.”

“I think jumping in your face at the funeral of Mervyn Dymally and only wanting to know about something that’s in his phone…that he forces me to look at while he puts a camera in my face and a microphone….I don’t think that is the civility and the gentility that I expect from the old CBS network,” Brown said.

Goldstein said CBS2 never spoke with the governor at the funeral. The interview with Brown took place two days later in Burbank.

RELATED STORIES:

CBS2 Investigates Caltrans Employees Who Use Taxpayer-Funded Cars For Personal Use

TUSTIN (CBS) — Former members of an Orange County congregation are suing the pastor for allegedly squandering more than $15 million he took after selling church property.

CBS2 investigative reporter David Goldstein spoke to two sisters who claim Pastor Neville McDonald used part of that money to fund a lavish lifestyle.

MAR VISTA (CBS2) — A water treatment plant built using more than $3 million of taxpayer money was supposed to remove bacteria from the waters feeding into Santa Monica Bay but it ended up dumping more bacteria into the ocean.

CBS2 investigative reporter David Goldstein spoke to activists who said the facility was a waste of stimulus money. Santa Monica officials, however, insisted they can eventually get the plant operational.

LOS ANGELES (CBS2) — With winter approaching many people turn to fur-lined coats to keep them warm. Buying fake fur is the politically correct thing to do but a CBS2 investigation found real fur is being passed off as fake.

Investigative reporter David Goldstein went to several stores and asked whether the clothing labeled as faux fur was properly labeled. He saw a pattern of clothing labels and store employees claiming the fur was fake.

An expert showed CBS2 time and again that it wasn’t.

NEWPORT BEACH (CBS2) – Several patients are accusing an Orange County dentist of charging them thousands of dollars for dental implants and subsequently never responding to their calls for help.

CBS2 investigative reporter David Goldstein discovered those patients never knew the California Dental Board filed a complaint last year against Dr. Thomas Teich. He was also found negligent this May in a medical malpractice lawsuit where the patient died.

That’s not all: Teich had served time in prison for mail fraud.

The dentist refused to comment on the allegations and the dental board’s complaint.

“Doctor, we’ve talked to a number of your patients who say they’ve been abandoned by you after paying you tens of thousands of dollars. How can you do that? How can you abandon these people?” Goldstein said.

Several patients who went to Teich’s Newport Beach office said the experience was nothing to smile about.

“I had so many infections in my mouth, it was just unbelievable,” one patient said.

“I don’t even speak the way I used to, and he disfigured me inside my face. It’s not the same. I’m hurting. All of these people are hurting. There are so many other people,” another patient said.

Patients said they were drawn to the Smile Implant Center after seeing TV advertisements, touting the office as the leader in dental implants.

Dental implants are used to support crowns or dentures, and can cost tens of thousands of dollars.

“I want them to know they took money from a widow,” Cynthia Hernandez said.

Teich’s office helped Hernandez get a loan for more than $12,000 at nearly 28 percent interest.

“I sold my purses, my shoes, my jewelry — anything that I had to sell to pay for this — and I still owe the bank at least $5,800 still,” Hernandez said.

Patients said the money wasn’t the issue. It’s what happened after they got their implants.

“Did your teeth fall out?” Goldstein said.

“Yes, twice, twice, and the screws come off,” Hernandez said.

And they some say when they tried to get help, after paying all the money upfront, appointments were hard to come by.

“They hold your money hostage,” a patient said.

A dental board representative said Dr. Teich should never have been licensed in California. In 1994, the dentist’s license was revoked in Arizona and Illinois. He was sentenced to 15 months in prison for mail fraud and admitted to a history of cocaine dependence.

However, in 1999, Teich’s license was reinstated in Arizona. Three years later, the Dental Board of California gave him approval to practice here.

“He should not have been licensed back in 2002. He was licensed by mistake,” said Russ Heimerich, a spokesperson for the California Dental Board. The board admits Dr. Teich didn’t hide his past record when he applied in California, but now they say he shouldn’t have qualified for a license. However, it’s too late to just take it away.

“There are legal problems with that. So, you know what we can do now is to try and shut him down based on the current complaints that we have,” Heimerich said.

In April 2011, the state dental board filed a complaint against Teich, accusing him of repeated negligent acts and unprofessional conduct.

In May of this year, Teich was found negligent in a wrongful death medical malpractice lawsuit. The patient stopped breathing and went into respiratory failure from anesthesia while getting dental implants.

Teich’s Newport Beach office closed a few weeks ago after receiving a notice he owed more than $280,000 in back rent.

Goldstein went to interview Dr. Teich at his new office in Santa Ana. While there, someone drove by and yelled, “Thief! You’re a thief!” at the dentist.

The doctor said he was experiencing financial problems, even though a Mercedes Benz registered to him was parked outside his new office.

“I wish I could take care of all these people and I am attempting,” Teich said.

“Oh, come on, these people say it’s been months; some say it’s been years,” Goldstein said.

With that, the dentist didn’t answer any more questions.

An attorney for the Smile Implant Center said Teich wasn’t ignoring patients. He said this was caused by a poorly-executed office relocation. He said four of the patients who spoke with CBS2 have since been scheduled to see the dentist Wednesday.

To file a complaint against your dentist with the California Dental Board call (714) 923-9725 or email dentalboardsouth@dca.ca.gov.