CITY HALL — Glendale officials have filed a lawsuit seeking repayment from a Los Angeles-based affordable housing developer that allegedly bilked the city out of millions in construction overcharges.
Glendale paid the developer, Advanced Development & Investment Inc., roughly $34 million since 2005 for four projects in south Glendale. But in the lawsuit filed last week in Los Angeles County Superior Court, the city claims some of that money was appropriated due to “fraudulent and inflated budgets, invoices, certifications and draws, as well as falsified accounting records, waivers and other loan documents.”
ADI, which is also under federal fraud investigation, built 55 projects across the state. Glendale officials have yet to determine the full extent of the alleged fraud, but are suing ADI to force the firm to account for all the money it received from the city, and how it was spent.
“Assuming the lawsuit uncovers what we believe, which is that a great deal of the money of the city of Glendale was stolen by this company … then we are absolutely going to use the fullest extent of the law to recover the funds,” said Glendale Mayor Laura Friedman.