Local News in Brief : Firm Faces Criminal Probe by County
The Board of Supervisors has agreed to seek a criminal investigation into a company that defaulted on county bond contracts and allegedly failed to provide the funds needed to build a new fire station and a hospital expansion.
Contractors Surety Bonding Co., based in Washington, defaulted on contracts to safeguard funds for a $631,750 fire station in Diamond Bar and an $885,000 addition to Martin Luther King Jr./Drew Medical Center in South-Central Los Angeles, county officials said.
Company executives were among six people indicted last month in Arizona over questionable bond insurance deals. The firm also defaulted on a government job for the Department of Water and Power in the city of Los Angeles, according to DWP officials.
Officials for Contractors Surety could not be reached for comment, but Supervisor Pete Schabarum, who called for a district attorney’s investigation, said the firm should be placed on the unacceptable list.
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