PACOIMA : Law Center Grant Restoration Urged

Los Angeles city officials are recommending restoration of a $190,000 city grant to a poverty law center whose director resigned after admitting he embezzled more than $400,000 from the agency over several years.

The grant was suspended after Steven Carroll, 40, stepped down last month as director of Pacoima-based San Fernando Valley Neighborhood Legal Services.

The city’s Community Development Department is recommending that the grant be reinstated, a move subject to approval by the City Council.

As a safeguard, the grant money will go to an independent accounting firm that will pay the center’s day-to-day bills with the funds.

“The center won’t be touching a dime,” CDD General Manager Parker Anderson said. “It’ll be paid directly to the vendors.”

Still on hold is another $248,000 in city grant funds to cover renovation of the center’s offices. The release of this money is dependent on the outcome of a complete audit of the agency’s financial records, Anderson said.

A preliminary audit showed only a small irregularity in how the center has handled the city’s grant funds in the past, Anderson said.

Apparently, the missing funds were fees paid to the center for its legal work, the Community Development Department chief said.

Carroll has already returned $50,000 and pledged to cooperate with authorities.