Irwindale : Fines May Save Scholarships

An Irwindale scholarship fund that is running dry may be saved soon if the city is allowed to replenish it with money that a former city manager paid the city to avoid prosecution.

Last week, the City Council voted to try to bolster the scholarship fund with $187,000--$37,000 of which is interest earned over several years--that former City Manager Charles Martin paid to the city.

Martin, who also served as Irwindale’s attorney, agreed in 1987 to pay $400,000 in civil fines to Irwindale and the district attorney’s office to avoid criminal prosecution. He had been charged with being involved in conflicts of interest when he took commissions on sales of six bond issues that he had recommended to the Irwindale City Council.

Of the total Martin paid in his settlement, $250,000 went to the district attorney’s office for legal investigation costs and civil penalties. The remaining $150,000 went to Irwindale for community use, city officials said.

Officials are waiting for approval from the district attorney’s office on their proposal to use the city’s portion of the settlement for the scholarship fund.

The fund, which had been bolstered primarily by contributions from quarry operator Diversified Materials, has dwindled to about $25,000 since Diversified left town. The Irwindale Chamber of Commerce, which administers the fund, awarded $52,000 in scholarships this year, helping to send about 50 residents to local and out-of-state colleges.