Huntington Park was promised a $24-million pool complex. It was never built. Where did the money go?
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Back in 2019, plans were announced with much fanfare for an aquatics center with an Olympic-size pool for residents of the working-class city of Huntington Park.
Officials hailed it as a major improvement.
“The aquatic programs will allow the community to unite for play, competition, fitness, and learning at all ages. The community swimming programs will create a stronger relationship with the community, increasing access, public engagement, and recruitment into higher education opportunities,” the city said in its announcement.
But six years later, the center has still not been built and the Los Angeles County district attorney’s office is now investigating where the millions allocated for the project went.
Huntington Park City Hall and the homes of current and former City Council members were searched Wednesday as part of a corruption investigation, the L.A. County district attorney’s office announced.
Electronics, paperwork and records were seized as part of the investigation, dubbed Operation Dirty Pond, the D.A. said.
The warrants were served at the homes of Mayor Karina Macias, Councilmember Eduardo “Eddie” Martinez and former members Graciela Ortiz and Marilyn Sanabria, the sister of a current council member. Huntington Park City Manager Ricardo Reyes was served with a warrant, as was the city’s Public Works Department. Reyes, Macias and other council members could not immediately be reached for comment.
Photos posted on Facebook show police tape blocking the entrance to Huntington Park City Hall and a white van in the parking lot. The district attorney said numerous items were seized from each location including public records, financial paperwork, computers, tablets, cellphones and other forms of electronic equipment.
Prosecutors said the warrants stem from an ongoing investigation that began in November 2022. Investigators have been looking into alleged misuse of millions of dollars allocated for the center. The city allocated more than $20 million to the project and has spent about $14 million even though nothing has been constructed yet.
“My office is committed to ensuring that public officials uphold the highest standards of honesty, integrity, and transparency,” L.A. County Dist. Atty. Nathan Hochman said. “When concerns arise about the use of public funds or the actions of those in office, it is our duty to investigate thoroughly and protect the public’s trust.”
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A copy of a warrant reviewed by The Times suggests that investigators are looking into allegations of bribery, misappropriation of public funds, conflict of interest, money laundering and conspiracy. The warrant also suggests that the investigation is centered around Efren Martinez.
It’s not the first time Huntington Park officials have found themselves entangled in controversy with Martinez.
In 2017, the district attorney’s office launched an inquiry focused on Macias, who as a political consultant helped raise money for Martinez’s 2016 state Assembly campaign.
At the time, Macias said she had raised about $25,000 for Martinez and was paid nearly $6,800 in commission for her efforts, according to campaign records and financial disclosures.
The money she raised, however, came from companies that sought to do business with the city, according to prosecutors.
It was later discovered that the City Council had appointed Martinez to the Planning Commission while Macias was fundraising for his campaign committee. The position included a $75 monthly stipend.
Macias denied any wrongdoing, and prosecutors did not pursue charges against her.
The city made headlines again in 2021 when current and former employees accused city leaders of retaliation over questionable contracts they had awarded.
At least one employee, a budget analyst, was arrested on suspicion of breach of confidential records. In a claim, which is a precursor to a lawsuit, the employee said she was downloading financial records amid rumors of an FBI investigation and to avoid being implicated in any possible wrongdoing.
At least five other finance department employees were placed on leave after the arrest.
In a lawsuit filed the year before, four current or former city employees alleged they were the victims of retaliation for opposing improper discounts on city fees and trying to uphold internal financial controls.
Among them was Catalina Peraza, a finance assistant who was laid off in 2020 after she refused to grant an 80% discount, worth $800, on opening a water account for the campaign headquarters of then-Assembly candidate Martinez, according to the lawsuit.
Another former employee alleged she was reprimanded and laid off after reporting that a cannabis dispensary connected to Martinez was operating without a license.
City officials denied the allegations.
Martinez, who ran for Assembly again last year and lost, could not immediately be reached for comment.
As part of the investigation announced Wednesday, law enforcement officers served search warrants at Martinez’s home and the office of his consulting firm, Unified Consulting Services.
Search warrants were also served at the homes and offices of Edvin Tsaturyan and Sona Vardikyan, owners of JT Construction Group Inc., the contractor selected to build the aquatic center in Huntington Park. The company did not respond to a request for comment.
A Huntington Park city employee, who could not be identified because they were not allowed to speak about the investigation, said that about $9 million was paid to the construction firm and that the city was trying to determine how the money was spent. So far, the source said, the city has accounted for only $3 million.
Hochman said in his statement, “I want to commend our dedicated prosecutors and investigators for their diligent work on this complex case. Their unwavering commitment to justice ensures that no one — regardless of their position or title — is above the law.”
Times staff writer James Queally contributed to this report.
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