Vernon pays $500000 to ex-official who
pleaded guilty to corruption
Los Angeles Times August 3,
2011
The city of Vernon
this week paid $500,000 to a former city administrator who last month pleaded
guilty to felony corruption charges involving questionable business deals
between the city and his wife.
The payment was made to close out the remaining time on the
contract of Donal O'Callaghan, who was placed on
leave last year after The Times revealed that he had overseen his wife’s hiring
as a city contractor. L.A.
prosecutors later charged him with conflict of interest and misappropriation of
public funds.
O'Callaghan had demanded $1.2 million from the city, and the
$500,000 settlement prevented a potentially messy courtroom fight occurring as
state lawmakers are considering whether to disband the embattled city.
“The city approached this situation in an entirely rational
fashion,” said David Schindler, the outside attorney representing Vernon. “It made an
intelligent business decision that was in the best interest of the city.”
O'Callaghan's contract, which was obtained by The Times through a Public Records Act Request, included a
special provision preventing Vernon
from terminating him with cause unless he was convicted of a “felony involving
moral turpitude.”
But Schindler said he wasn’t certain the city could
successfully litigate the case had O'Callaghan sued, saying it was far from
clear that a violation of state conflict-of-interest codes amounted to
"moral turpitude."
Mark Werksman, O’Callaghan’s
attorney, said the settlement was “totally lawful and appropriate.”
“The guy had a contract, it was valid and he was entitled to
a lot more,” Werksman said. “He wanted to resolve
this and move on.”
O’Callaghan was one of the highest paid public employees in
the state over the last five years, making as much as $785,000 in 2009. During
his five-year tenure he served as the director of Vernon’s power utility and its top
administrator.
After his plea last month to conflict-of-interest charges,
O’Callaghan was sentenced to one year summary probation and 200 hours community
service.
He is the third top Vernon
officials to be convicted of public corruption charges in the last five years.
One of his predecessors as city administrator, Bruce Malkenhorst,
pleaded guilty to corruption charges earlier this year.
Despite the charge, Malkenhorst
still receives the highest pension in the California Public Employees Retirement
system: $509,664 a year.
http://latimesblogs.latimes.com/lanow/2011/08/vernon-pays-500000-to-ex-leader-who-pleaded-guilty-to-corruption-felony.html