CITY HALL — As federal officials begin to investigate alleged fraud surrounding Advanced Development & Investment Inc., city officials are grappling with what it means for the dozens of low-income families hoping to move into the affordable housing developer's latest project.
ADI — under federal investigation for allegations that the firm's top officials transferred millions to personal accounts and bilked cities out of millions in taxpayer dollars — has built four projects in Glendale and received nearly $34 million in city assistance.
Allegations have been levied in Los Angeles County Superior Court that similar fraud was committed in cities across the state.
As Glendale officials continue to grapple with the implications of the investigation, officials are also working to draft safeguards to prevent any future fraud.
"We need to come up with ways to make sure we can keep a better eye on developers, assuming the allegations are true," said City Councilwoman Laura Friedman, not yet elected when the four current projects were approved.