LAFD union leaders suspended after an audit reveals $800,000 in undocumented expenses, with the president alone racking up over $311,000 in questionable charges while misusing charity funds and padding paychecks with overtime.
Key Takeaways
- President Freddy Escobar and top officers of Los Angeles Fire Department’s union suspended after audit found $800,000 in undocumented credit card transactions
- Escobar made 1,957 transactions totaling $311,497.58, with more than 70% lacking proper documentation
- Investigation revealed union charity funds allegedly misused for personal expenses while officers padded their paychecks with overtime
- IAFF appointed a conservator to manage the union and restore financial accountability
- Escobar’s 2022 earnings reached approximately $540,000, more than doubling his base salary with overtime and union stipends
Massive Financial Improprieties Uncovered
The International Association of Fire Fighters (IAFF) has taken drastic action against the leadership of United Firefighters of Los Angeles City (UFLAC) following damning audit findings. President Freddy Escobar and several top officers were suspended after investigators uncovered over $800,000 in credit card transactions lacking proper documentation between July 2018 and November 2024. The financial mismanagement extends far beyond simple accounting errors, with evidence suggesting deliberate abuse of union resources and charitable funds.
The most shocking revelations involve President Escobar, who alone made 1,957 transactions totaling $311,497.58, with over 70% lacking supporting documentation. Of this amount, $230,466 had no documentation whatsoever, while $35,397 was only partially documented. This pattern of financial negligence continued despite previous audits highlighting significant deficiencies and explicit warnings to correct these practices. Instead of implementing proper controls, Escobar and his colleagues allegedly continued their spending spree with union dues.
Widespread Leadership Corruption
The financial misconduct extends beyond just Escobar. Former Secretary Adam Walker and former Treasurer Domingo Albarran Jr. were implicated in over $530,000 of undocumented transactions. Vice Presidents Chuong Ho and Doug Coates were also suspended for failing to enforce union policy and properly oversee financial operations. The investigation began after new treasurer Jason Powell raised concerns about improper recordkeeping, triggering a comprehensive audit that exposed the full extent of the mismanagement.
“The leadership of UFLAC has abdicated its fiduciary responsibilities and placed Local 112 in ill repute. The financial malpractice by the leadership of UFLAC has dealt serious harm to the membership,” said IAFF General President Edward Kelly.
Perhaps even more disturbing, Walker allegedly misused funds from the union’s charity for personal expenses, diverting money intended for charitable purposes to benefit himself. This betrayal of public trust represents a significant breach of ethics and potentially criminal misappropriation of charitable donations. These charitable funds were specifically designated to support firefighters and their families in times of need, making their misuse particularly reprehensible.
Self-Enrichment Through Union Position
Beyond the misuse of union credit cards, evidence suggests the suspended officers engaged in systematic self-enrichment. Escobar and others reportedly padded their paychecks with overtime and union stipends, effectively using their positions to substantially increase their compensation. Public records show Escobar earned approximately $540,000 in 2022, more than doubling his base salary through various supplemental payments while simultaneously neglecting his fiduciary responsibility to union members.
“serious problems” said IAFF General President Edward Kelly.
The IAFF has appointed John Bagala as conservator to manage the union and implement responsible financial practices. This extraordinary intervention underscores the severity of the financial mismanagement and the urgent need to restore accountability. The conservator will have broad authority to review all union operations, implement proper financial controls, and ensure transparency in how firefighters’ dues are being utilized. The conservator’s role includes preparing the union for the eventual return to member-led leadership with proper safeguards in place.
Restoring Trust and Accountability
The action taken by the IAFF represents a critical step toward restoring integrity to the Los Angeles firefighters’ union. With over $800,000 in questionable transactions identified, members have legitimate concerns about how their dues have been managed and whether their leadership has been operating in their best interests. The audit findings have prompted calls for criminal investigations into potential fraud, embezzlement, and misappropriation of funds meant for charitable purposes.
“restore responsible financial stewardship and guarantee the fulfillment of UFLAC’s legitimate objectives,” said IAFF General President Edward Kelly.
This scandal highlights a broader pattern of financial abuse within certain labor organizations, where a lack of oversight can create opportunities for self-dealing and corruption. The conservatorship will focus on implementing appropriate checks and balances, ensuring proper documentation of expenditures, and creating transparency in financial reporting.
