LOS ANGELES (AP) – Authorities allege that a man who operated parking lots for the U.S. Department of Veteran’s Affairs in Los Angeles defrauded the agency out of $11 million.
A U.S. attorney’s statement says 58-year-old Richard Scott kept two sets of books for 15 years, stashing millions in unreported cash and millions more in over-reported expenses.
Authorities say Scott, owner of Westside Services LLC, was arrested in Santa Monica on Wednesday.
Court papers say Scott used the wealth he gathered to buy three $2.5 million condominiums in Santa Monica, a racing boat in Miami, and cars that include Ferraris, high-end Mercedes-Benzes and a Shelby Super Snake Mustang. Federal authorities are attempting to seize those assets.
Scott has not yet entered a plea and it’s unclear whether he has hired an attorney.
Copyright 2017 The Associated Press.