- $800,000 in undocumented union credit card charges revealed
- Three top officials suspended following financial misconduct probe
- Internal audit uncovers personal fund misuse including casino withdrawals
- Parent organization implements emergency financial oversight measures
- Union president denies allegations, vows to clear his name
The Los Angeles firefighters union faces unprecedented turmoil after an external audit exposed nearly $1 million in undocumented expenses. Forensic accountants identified 4,200 questionable transactions between 2018-2024, with former president Freddy Escobar accounting for over a third of the total through his corporate card. The International Association of Fire Fighters (IAFF) discovered mortgage payments and casino withdrawals disguised as operational expenses.
Financial watchdogs identified three critical breakdowns in accounting practices: missing receipts for 68% of transactions, duplicate reimbursement claims, and unapproved transfers between accounts. Former treasurer Domingo Albarran allegedly funneled $300,000 through shell corporations while serving as the union's financial steward. These findings come amid increased scrutiny of public service unions' financial transparency nationwide.
Industry analysis reveals 42% of labor organizations lack real-time expenditure tracking systems, creating opportunities for misuse. The Chicago Police Union faced similar challenges in 2022 when $500,000 vanished from their disaster relief fund. Financial experts recommend quarterly third-party audits and blockchain-based transaction logging to prevent future breaches.
Union members expressed outrage during emergency meetings this week, demanding full restitution and criminal investigations. This betrayal undermines our collective bargaining efforts,stated LAFD Captain Maria Gonzalez. We need complete transparency before negotiating our next contract.The IAFF has frozen all non-essential spending until 2025 while implementing new financial controls.
Legal experts predict civil lawsuits could drain the union's remaining $2.1 million strike fund. California's Fair Political Practices Commission has opened a separate inquiry into potential campaign finance violations from misreported expenses. As investigations continue, the scandal serves as a cautionary tale for unions nationwide about financial oversight in the digital age.