Advanced Development and Investment Inc. (ADI), a real estate development company that received approximately $29 million in subsidies from the city of Los Angeles, has agreed to pay $165,000 to end an ethics investigation related to allegations of campaign money-laundering. ADI and its affiliated subcontractors had steered more than $400,000 to the political campaigns of candidates in California, according to the Los Angeles Times.

The Los Angeles Ethics Commission concluded that ADI and its affiliated construction company made 33 contributions totaling $23,850 under assumed names between 1999 and 2009. ADI executives then used cash and checks from company accounts to reimburse employees who had made the contributions, according to the Times report.
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The subsidies were used to build affordable multistory apartments in Lincoln Heights, Chinatown and other neighborhoods near downtown Los Angeles. Some of these projects have since developed maintenance problems, including exposed wiring and leaky roofs, windows and pipes. The Ethics Commission is expected to approve the fine on Thursday.

Last Updated on December 11, 2012 by Ramin Seddiq