Former Bell mayor steps down from charity that does work for the city

Under fire for failing to properly disclose government contracts, former Bell Mayor George Cole has stepped down, at least temporarily, as chief executive of the Steelworkers Oldtimers Foundation, a charity that does work for Bell and other cities, the group’s representatives said Tuesday.

In a notice to staff Friday, Cole cited medical issues as the reason for his departure, said Steve Madison, an attorney for the organization. “He is on medical leave dealing with some health issue,” Madison said.

Irene Muro, the foundation’s director of operations, has taken over .

Cole leaves as the nonprofit group is in the process of responding to a subpoena from the state attorney general’s office seeking information involving its contracts with the city.

Madison, a former federal prosecutor, said his law firm has been asked by the foundation to review its financial records as it works to comply with a “broad” subpoena from the attorney general’s Registry of Charitable Trusts for documents involving municipal contracts.

“We are in the process of doing that,” he said.

The attorney general’s office, which is investigating finances involving the city of Bell, declined comment Tuesday on the records requests.

The Times reported recently that the foundation received millions of dollars in recent years from cities including Bell for services to senior citizens yet filed sworn reports with the state that it had received no such money. The subpoena is separate from a letter sent by the registry last month directing the foundation to amend those reports.

Cole, who signed the financial reports under penalty of perjury, was given 30 days to provide the required contract information. He had not done so as of late Tuesday.

Madison said the original financial disclosure form was prepared by an outside accounting firm that has since been replaced.

The contracts “should have been reported,” Madison said. “Obviously there is an error here being corrected.”

Madison said the change in the foundation’s management is not expected to affect its services to seniors.

“This organization has been around a long time, provides lots of services to seniors and kids and families and needy people,” Madison said. “Our focus is just helping them review everything, check everything out, make sure that everything complied with their contracts.”

Cole was a member of the Bell City Council for 24 years, which included routine rotations as mayor, before he abruptly quit the panel in October 2008.

The Times has reported that Cole was on the council when it voted to give contracts to the Oldtimers group but that he did not participate in the votes. The foundation also received a $72,000 loan in 2005 from the city of Bell.

patrick.mcgreevy@latimes.com