Lottery official terminated for hotel contract

SACRAMENTO — The California Lottery's broadcasting director was fired Tuesday over allegations he signed an unauthorized contract last year with the Hilton Glendale using state funds that earned his personal hotel account at least 97,000 member rewards points.

Richard Leeson's termination came after a two-month administrative investigation into the matter, and on the same day a special state Senate hearing was convened seeking an explanation from state lottery officials.

The August 2006 contract for about 80 rooms a month was signed by Leeson to house lottery contestants appearing on the "Big Spin" television show for the 2007 calendar year at the Hilton Glendale on West Glenoaks Boulevard. The Hilton Honors points were accrued at one point per dollar, lottery officials said.

The points can be redeemed for stays at Hilton-owned hotels around the world or for flight tickets at various airlines.

The agreement was a violation of state law prohibiting government employees from using state funds to benefit financially or otherwise, said Don Currier, chief legal counsel for the state Lottery Commission.

Additionally, Leeson did not have the authority to sign the contract and never told his supervisors of his actions, Currier said.

A separate criminal investigation into Leeson's intent in signing the agreements, and to determine if he accrued more points beyond the August 2006 contract, continues.

Calls made to Leeson's Sacramento-area home were not returned Wednesday.

The 2006 Leeson-Hilton contract came to the attention of the Lottery's legal department in March after representatives of local workers' union Unite Here made a records request for the paperwork in their bid to have the state organization join their ongoing boycott of the hotel.

A May 24 Glendale News-Press article on the matter near the end of the investigation caught the attention of state Sen. Dean Florez (D-Shafter), who chairs the committee that oversees the Lottery Commission.

After confirming the investigation with lottery officials, he called a special hearing into the matter on Tuesday, where state Lottery Director Joan Borucki announced Leeson's termination.

"We're very happy they took the action they took," Florez said in a phone interview after the hearing. "I think the message has been sent."