Nov 26, 2013
Former Coliseum Accountants Settle Fraud Claims for $800K

The former accounting firm for the Los Angeles Memorial Coliseum agreed to pay an $800,000 settlement to the Coliseum Commission last week in exchange for the dropping of claims that the firm neglected to detect fraud in connection with the alleged kickback scheme involving venue managers and promoters including former manager Todd DeStefano and Insomniac CEO Pasquale Rotella.

According to the suit, accounting firm SingerLewak’s “incompetent auditing and accounting services effectively protected the corrupt former employees” while they were allegedly accepting under-the-table payments from promoters to grease the wheels for EDC while it was still in LA.

In exchange, both parties will drop lawsuits they’ve filed against each other. The Los Angeles Times reports that SingerLewak was “negligent in not uncovering about $2 million in questionable payments to the managers, in addition to nearly $1 million in cash outlays to a stagehands union at the Coliseum.” According to Coliseum officials, these payments were made off the books and some in the form of cash-filled suitcases or backpacks. This alleged breach led to a countersuit from SingerLewak, saying the Coliseum’s managers, including DeStefano, misled the firm’s accountants to cover up their activities. The Coliseum Commission’s attorney, Charles Slyngstad, issued a statement saying the claims “were resolved to the satisfaction of all parties,” in efforts to avoid the expense of litigation in both time and money.

Read the full story here.

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