Some of the ‘assets’ authorities seized after feds arrested Richard Scott, Wednesday in Santa Monica, Calif
A Los Angeles based businessman was arrested Wednesday on charges of bilking the U.S. Department of Veteran’s Affairs out of more than $11 million.
Prosecutors say Richard Scott, the owner of Westside Services LLC, was arrested without incident Wednesday morning, at his home in Santa Monica, California
According to a criminal complaint filed earlier this month,shortly after 58-year-old Scott obtained a contract to operate parking lots on the campuses of the VA Greater Los Angeles Healthcare System, he began defrauding the VA by failing to properly report income and expenses.
The vast majority of the activity authorized under the contract took place at the West Los Angeles VA Medical Center near Westwood, prosecutors said.
The affidavit says for more than a decade, Scott has had a contract with the VA requiring him to provide the agency with 60 percent of the gross revenues from the parking lots.
Fruit of the poisoned tree: Black Ferrari was just one of several high end vehicles Feds seized during Thursday’s arrest of Richard Scott
Ferrari No. 2 seized by Feds seized high end vehicles during Thursday’s arrest of Richard Scott who defrauded VA of millions
But prosecutors say investigators determined that Scott maintained at least two sets of financial books: one which contained false revenue and expense statements, and a second set of books maintained by Scott’s tax preparer containing the actual revenues and expenditures, except for unreported cash.
Scott ai accused of under-reported revenue to the #VeteransAffairs by a minimum of $4,689,081 and over-reported expenses to the VA by a minimum of $8,219,762, which caused a direct loss to the VA of $11,397,779.
Richard Scott paid himself $3.1 million a year and ran up exorbitant travel and entertainment expenses, though all his business took place in the same area of Los Angeles. He amassed three Santa Monica condominiums valued at $2.3 million each, a house in Malibu and brokerage accounts, Torbic alleged.
In a parallel move, federal agents moved to seize his assets, including a racing boat, three Ferraris, a 1969 Corvette L88, two “high-end” Mercedes-Benz vehicles, and a Shelby Super Snake Mustang.