Category Archives: Fraud Waste and Abuse

Articles, information, and editorials on fraud, waste, and abuse in government and in the private sector.

Inherent Conflict of Interest – Letter to the El Segundo Herald by Mike Robbins

Inherent Conflict of Interest

The Police Officers’ and Firefighters’ Associations (unions) bankrolled the Measure B tax-hike campaign. FPPC campaign disclosure forms show the police and fire unions spent an overwhelming $39,247.50 in our city election ($19,033.50 police, and $20,214.00 fire) to influence voters on Measure B and the City Council race.

This is nearly four times the $10,000 they contributed to the “Yes on Measure A” campaign in 2014, for eleven tax hikes, on residents and businesses. The fire union probably spent more than $100,000 on their Measure P campaign in 2012, to outsource our local Fire Department to Los Angeles County for a reduced level of service, for their own financial benefit.

None of the firefighters and only about one-fourth of the police live in town. They campaign in our local elections to maximize their pay and pensions, and raise taxes and fees to pay for it, no matter how excessive and unsustainable.

The latest available El Segundo City Employee compensation data, for 2014, at TransparentCalifornia.com, shows the 58 sworn police employees had the following total annual pay and benefits statistics: Minimum=$139,028; Maximum=$358,536; Average=$228,240; and Median (half above and half below)=$214,867.

The 44 sworn firefighter employees had the following total annual pay and benefits statistics: Minimum=$148,235; Maximum=$375,524; Average=$247,646; and Median=$225,882. The firefighters are paid to sleep and eat, including some of those hours at the overtime rate of 150% their regular pay rate.

The union campaigns have nothing to do with safety and everything to do with union greed.

– Mike Robbins


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Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo Hotel Transient Occupancy Tax (TOT), El Segundo Measure B TOT Tax Hike, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Measure P - Firefighters Union Initiative, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Inherent Conflict of Interest – Letter to the El Segundo Herald by Mike Robbins

Smear Campaign? – Letter to the El Segundo Herald by Marianne Fong

Smear Campaign?

I would like to assure Marie Fellhauer’s campaign supporter, Jenica Brigham, that I do exist. I am not “the same person” as Mike Robbins as she claimed in her insulting 4/7/16 Herald letter. Brigham attacked me, Mike Robbins, and others with childish name-calling and other baseless personal attacks because we reminded voters of Fellhauer’s record on City Council. She used personal attacks because she could not disprove any of our facts about Fellhauer’s true record.

Brigham claimed the residents “think everything should be free.” In fact, we don’t want to be charged twice for the same things, such as $1,850+ fire department ambulance transport fees when taxes already pay for our fire department.

Brigham described herself as “a young woman”, apparently to attract young voters to vote for Fellhauer. But at age 38, she hardly qualifies as “a young woman”. By 38, you’d think she would have registered to vote. She is not even registered to vote in El Segundo, at least not as of 2014.

Another Fellhauer campaign supporter, Beth Schodorf, submitted a letter calling accurate descriptions of Fellhauer’s City Council record a “smear campaign”. Now who’s doing the smearing? Schodorf even defended Fellhauer by attacking Lou Kutil. That was a mistake. For many years Lou Kutil, an elderly resident himself, has volunteered his own time and money to drive elderly residents to their doctor appointments, wait for them, and drive them back home.

– Marianne Fong


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Posted in California, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter Union Corruption, Fraud Waste and Abuse, Letters to the Editor, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , | Comments Off on Smear Campaign? – Letter to the El Segundo Herald by Marianne Fong

Election Information Flyers Were Distributed Throughout El Segundo

Election Information Flyers were distributed throughout the City of El Segundo to inform voters about Measure B and the City Council candidates before the April 12, 2016 El Segundo General Municipal Election. Election Flyer #1 was distributed on Sunday, April … Continue reading

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Measure B TOT Tax Hike, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Police Union Corruption, Political Corruption, Politics, Union Corruption | Tagged , , , , , , , , , , , | Comments Off on Election Information Flyers Were Distributed Throughout El Segundo

Important Information for the April 12, 2016 El Segundo General Municipal Election

May 4, 2016 Election Update Final Election Results Certified at the May 3, 2016 El Segundo City Council Meeting The old El Segundo City Council conducted minimal City business and adopted a resolution certifying the April 12, 2016 General Municipal … Continue reading

Posted in Beach Reporter Letters, California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo Hotel Transient Occupancy Tax (TOT), El Segundo Measure B TOT Tax Hike, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Important Information for the April 12, 2016 El Segundo General Municipal Election

Argument Against Measure B on the April 12, 2016 El Segundo General Municipal Election Ballot

Here is the Sample Ballot Argument Against Measure B, El Segundo’s 50 Percent TOT Tax Hike from 8% to 12% on the April 12, 2016 El Segundo General Municipal Election ballot. This argument is in addition to the Sample Ballot … Continue reading

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Hotel Transient Occupancy Tax (TOT), El Segundo Measure B TOT Tax Hike, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Politics, Tax Policy and Issues | Tagged , , , , , , , , , , , , , | Comments Off on Argument Against Measure B on the April 12, 2016 El Segundo General Municipal Election Ballot

Let’s Be Realistic – Letter to the El Segundo Herald by Jane Waag Friedkin

Let’s Be Realistic

Incumbent City Council candidate Marie Fellhauer said she “is fighting to get our fair share of the county property tax levy.” That may sound nice as a campaign slogan, but it has little basis in reality.

She compares El Segundo and Manhattan Beach with respect to property tax revenue, but not business tax revenue. Is she willing to give up a share of El Segundo’s massive business tax revenue in exchange for a share of Manhattan Beach’s property tax revenue?

Fellhauer and Dave Atkinson voted to charge El Segundo residents and non-residents fire department ambulance transport fees of $1,850 or more per transport. They had plenty of time to rescind the fees, but did not, even though residents spoke against them at City Council meetings. Is it realistic to believe they might rescind these fees after they are re-elected for another four years?

Is it realistic to believe Fellhauer would have rejected the police and fire union endorsements had they decided to endorse her? Her allies and supporters, former Mayors Eric Busch, Bill Fisher, and Sandra Jacobs, all received police and fire union endorsements and campaign expenditures. The firefighters even delivered and installed their campaign signs.

Fellhauer claims she’s making a sacrifice by declining City Council benefits. She said others should make the same sacrifice. However, she is not making any sacrifice because she gets generous benefits through her LAPD job. City Council pays only about $10,800 per year. Hopefully, the benefits help attract more competent and honest candidates.

– Jane Waag Friedkin


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Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter Union Corruption, Fraud Waste and Abuse, Letters to the Editor, Manhattan Beach, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , | Comments Off on Let’s Be Realistic – Letter to the El Segundo Herald by Jane Waag Friedkin

Gouging Hotels – Letter to the El Segundo Herald by Kip Haggerty

Gouging Hotels

To my dismay, I see the City Council has come back to us yet again with the immoral proposition of gouging hotel customers for the crime of not being us. The argument in favor is based on the bromide “every one else is doing it.” Anything higher than the sales tax rate is just plain wrong and I hope we have the collective wisdom to vote it down again. Instead of gouging visitors, we could always vote out the incumbents to keep any one from accumulating two terms and their associated health insurance for life benefit. This could save substantial funds for lifetime health care insurance of “retired” council members.

– Kip Haggerty


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Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo Hotel Transient Occupancy Tax (TOT), El Segundo Measure B TOT Tax Hike, El Segundo News, El Segundo Tax and Fee Increases, Elections, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Politics, Tax Policy and Issues | Tagged , , , , , , , , , , , , | Comments Off on Gouging Hotels – Letter to the El Segundo Herald by Kip Haggerty

Entitlement Versus Affordability – Letter to the El Segundo Herald by David Burns

Entitlement Versus Affordability

There’s been frequent talk about what El Segundo residents “deserve” when it comes to funding public safety services. The discussion should really be about what we can afford. Residents got what they deserved in past budgets that funded public safety services from 2000 through 2009. Police and Fire enjoyed annual pay raises in the range of 5% to 9+% annually from 2000 through 2009. They received a public benefit of enhanced pensions that saw city costs rise by ten’s of millions of dollars over a decade. By getting what our past City Council’s felt our public safety officials were entitled to or “deserved” nearly bankrupted our city. City Hall’s past culture of entitlement nearly cost us our independent fire department and paramedic ambulance services. El Segundo had a platinum spending culture, unfortunately, our budget couldn’t sustain such entitlements or costs.

That’s the hard lesson residents and elected officials must remember. The City Council has taken a lot of hits for maintaining fiscal responsibility and balanced budget accountability, resulting in a barrage of disrespect from the public safety unions displaying unprofessionalism by name calling and disrespecting city leadership. This must end.

The new City Council must remember the lessons of the past. If Measure B passes, we must look to the future of what El Segundo can afford. What El Segundo deserves is quality public safety services, living within our means, maintaining services that are affordable, and ensuring that public safety is provided with quality equipment, resources, and training.

– David Burns


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Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo Hotel Transient Occupancy Tax (TOT), El Segundo Measure B TOT Tax Hike, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , | Comments Off on Entitlement Versus Affordability – Letter to the El Segundo Herald by David Burns

Strange Election – Letter to the El Segundo Herald by Marianne Fong

Strange Election

The police and fire unions are endorsing and campaigning for the three challenger candidates because they want incumbents Marie Fellhauer and Dave Atkinson off the City Council. This makes for a strange election, because Fellhauer and Atkinson should be off the City Council, and challengers Carol Pirsztuk and Don Brann should be elected. The unions usually endorse the worst tax-and-spend candidates.

We must judge the incumbent City Council candidates by their voting record, especially when they had a majority with Bill Fisher and ran amok, not by their campaign rhetoric, false accomplishments, and campaign promises.

Fellhauer and Atkinson have been tax-and-spend politicians. They voted for at least a dozen tax hikes, on residents and businesses, and fee increases, to pay for excessive police and fire union raises handed out by their allies Eric Busch and Bill Fisher.

They played a financial shell game to claim they balanced the City budget. They spent down the City’s Reserve Account, and borrowed large sums from the Equipment Replacement Fund, which is used to save up money over the years to pay for everything from new computers to new police cars and fire engines.

Fellhauer and Atkinson continued the Chevron Shakedown started by Busch and Fisher, and effectively extorted an additional $8.5 million average per year for 15 years from Chevron, without justification.

They are talking like conservatives, and padding their campaign literature, taking credit for accomplishments of the current fiscally conservative majority. Fellhauer is even quoting Ronald Reagan in this masquerade.

– Marianne Fong


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Posted in California, Doug Willmore's Great Chevron Shakedown, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , | Comments Off on Strange Election – Letter to the El Segundo Herald by Marianne Fong

No on Measure B – Letter to the El Segundo Herald by Jerry Wellfonder

No on Measure B

Read the Argument Against Measure B and Rebuttal to the Argument in Favor of Measure B in the Sample Ballot. You can view or download it at the City website, ElSegundo.org.

Vote “No” on Measure B, the Bait-and-Switch tax hike. The City lured hotels here with a Business Attraction Program and lower hotel Transient Occupancy Tax (TOT). Now after the hotels are built, the City is trying to raise their TOT tax by 50%, from 8% to 12%. This tax, paid by customers, will increase room prices and reduce sales. The TOT is only 10% in adjacent Manhattan Beach.

Measure B will destroy El Segundo’s longestablished reputation as a fair and stable business-friendly city. We may ultimately lose more tax revenue than we will gain, by discouraging businesses from coming and expanding here.

The hotel operators, Councilman Mike Dugan, and former Council Members Mike Robbins, Jane Friedkin and Dick Switz all oppose Measure B.

Government must learn to live within its means. This cycle of handing out big pay raises to the safety unions and management, and raising taxes to pay for it, has increased both the funded and unfunded CalPERS pension liabilities. It has got to stop. Each pay raise increases the pension liabilities. El Segundo’s unfunded CalPERS pension liability – about $106,500,000 – must be paid over many years, as employees retire, over their remaining lifetime, which will average about 25 to 35 years per retiree.

Vote “No” on Measure B to stop this vicious cycle.

– Jerry Wellfonder
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Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo Hotel Transient Occupancy Tax (TOT), El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Police Union Corruption, Political Corruption, Politics, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , | Comments Off on No on Measure B – Letter to the El Segundo Herald by Jerry Wellfonder