Money allegedly skimmed from the VA by a 58-year-old parking lot mogul may have been used to buy a 1969 Corvette L88, among other expensive items.
The accusation came to light this week when Richard Scott, 58, owner of Westside Services, was arrested after being accused in a federal complaint of keeping two sets of books for several parking lots he runs, allowing him to under-report revenue and over-report expenses and in the process skim $11 million from the VA.
Scott’s lots were used to store construction equipment, rental cars, buses, and car dealership and film production vehicles. Scott also ran event parking for UCLA’s baseball stadium, the L.A. Marathon, a golf tournament and the Brentwood and Wadsworth theaters.
Wednesday, federal agents seized some of the high-dollar items that Scott allegedly bought with the stolen funds, including the Corvette L88, three Ferraris, two Mercedes-Benzes, and a Shelby Super Snake Mustang.
Authorities allege that Scott paid a VA contract administrator $130,530 to overlook the fraud.
Scott was arrested at his Santa Monica home Wednesday and was held overnight until a detention hearing Thursday to consider the possibility of bail.
“He was taking money from veterans,” said Jesse Creed, executive director of Vets Advocacy, a nonprofit group working with the VA to rebuild the 387-acre West Los Angeles campus to house veterans. “The VA didn’t have its house in order.”
The scheme allegedly allowed Scott to pay himself $3.1 million a year and buy three Santa Monica condos worth nearly $7 million and a house in Malibu, in addition to the fancy cars.
Despite the arrest, Westside Services will keep running the West Los Angeles lots until January, under an agreement with the VA.
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