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The city of Bell has a pattern of doing business with current and former city officials, including an ex-mayor who served time in federal prison, according to interviews and records obtained by The Times.
In the most recent deal, Bell's Community Redevelopment Agency last year paid $4.6 million to purchase property from a family trust of longtime politician Peter Werrlein, who was sentenced to three years in prison in the 1980s for holding hidden interests in a poker casino.
Despite his criminal record, Werrlein worked for the city as a consultant at least into the 1990s.
Werrlein also was executor for the estate of legendary Los Angeles mobster Mickey Cohen.
The Los Angeles County district attorney's office is examining the sale of Werrlein's Western Auto property, David Demerjian, head of the district attorney's Public Integrity Division, said in response to a Times inquiry.
"We're looking at whether the city overpaid for that property," Demerjian said.
"That's not necessarily illegal, but if they did, we'd want to look at whether any money was kicked back."
The City Council approved the sale with one dissenting vote by a councilman who balked at the price.
The investigation of the purchase is one of several involving Bell politicians and administrators, focusing primarily on their unusually large salaries. Three top city administrators stepped down last week, including City Manager Robert Rizzo, who made nearly $800,000 a year.
The Werrlein transaction is among a number of financial entanglements involving City Hall and municipal leaders.
Six years ago, the city Housing Authority bought a house from Oscar Hernandez, who is now the mayor, and his wife, according to county records.
The city has not released records that show the amount paid for the house, the reason it was purchased, whether Hernandez took part in the decision or what the city did with the property.
Attempts to reach Hernandez were unsuccessful.
In another case, the Community Redevelopment Agency purchased property owned by the Steelworkers Oldtimers Foundation, a social services organization run by George Cole, a former councilman. Details about that 2004 transaction have not been released.
It is not illegal for cities to do business with elected officials. However, state conflict-of-interest laws require that the officials involved have no role in the decision-making and that the city not make deals that amount to a gift of public funds to the officials.
The Oldtimers Foundation also holds a $38,000-a-month city contract for Dial-A-Ride services to provide transportation to senior citizens, according to Cole.
He said in an interview that the foundation got the contract about 15 years ago and that it was approved when he was on the council. He said he recused himself from the vote.
Cole described the cost of the Dial-a-Ride contract as reasonable for a service that he said ferries about 25,000 passengers a year. That ridership would work out to an annual cost of about $18 per passenger.
Cole defended the city acquisition of the Western Auto property, which he voted for during his final term on the City Council.
In the most recent deal, Bell's Community Redevelopment Agency last year paid $4.6 million to purchase property from a family trust of longtime politician Peter Werrlein, who was sentenced to three years in prison in the 1980s for holding hidden interests in a poker casino.
Werrlein also was executor for the estate of legendary Los Angeles mobster Mickey Cohen.
The Los Angeles County district attorney's office is examining the sale of Werrlein's Western Auto property, David Demerjian, head of the district attorney's Public Integrity Division, said in response to a Times inquiry.
"We're looking at whether the city overpaid for that property," Demerjian said.
"That's not necessarily illegal, but if they did, we'd want to look at whether any money was kicked back."
The City Council approved the sale with one dissenting vote by a councilman who balked at the price.
The investigation of the purchase is one of several involving Bell politicians and administrators, focusing primarily on their unusually large salaries. Three top city administrators stepped down last week, including City Manager Robert Rizzo, who made nearly $800,000 a year.
The Werrlein transaction is among a number of financial entanglements involving City Hall and municipal leaders.
Six years ago, the city Housing Authority bought a house from Oscar Hernandez, who is now the mayor, and his wife, according to county records.
The city has not released records that show the amount paid for the house, the reason it was purchased, whether Hernandez took part in the decision or what the city did with the property.
Attempts to reach Hernandez were unsuccessful.
In another case, the Community Redevelopment Agency purchased property owned by the Steelworkers Oldtimers Foundation, a social services organization run by George Cole, a former councilman. Details about that 2004 transaction have not been released.
It is not illegal for cities to do business with elected officials. However, state conflict-of-interest laws require that the officials involved have no role in the decision-making and that the city not make deals that amount to a gift of public funds to the officials.
The Oldtimers Foundation also holds a $38,000-a-month city contract for Dial-A-Ride services to provide transportation to senior citizens, according to Cole.
He said in an interview that the foundation got the contract about 15 years ago and that it was approved when he was on the council. He said he recused himself from the vote.
Cole described the cost of the Dial-a-Ride contract as reasonable for a service that he said ferries about 25,000 passengers a year. That ridership would work out to an annual cost of about $18 per passenger.
Cole defended the city acquisition of the Western Auto property, which he voted for during his final term on the City Council.
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