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<h6 class="posttitle"><span style="color: #050000;"><strong>Los Angeles parking lot operator allegedly defrauding Veterans Affairs out of $11M</strong></span></h6>
<h6 class="posttitle"><span style="color: #050000;"><strong>Richard Scott, owner of Westside Services, was arrested Wednesday at his home in Santa Monica home </strong></span></h6>
<h6 class="posttitle"><span style="color: #050000;"><strong>Scott, 58, is contracted to operate parking lots on the campuses of the VA in Los Angeles</strong></span></h6>
<h6 class="posttitle"><span style="color: #050000;"><strong>He is alleged to have failed to properly report income and expenses</strong></span></h6>
<h6 class="posttitle"><span style="color: #050000;"><strong> Scott allegedly maintained at least two sets of financial books, one contained false revenue and expense statements, and an actual revenues and expenditures</strong></span></h6>
<h6 class="posttitle"><span style="color: #050000;"><strong>Contractor under-reported revenue of $4.7M, over-reported expenses$8.2M</strong></span></h6>
<h6 class="posttitle"><span style="color: #050000;"><strong>Scott&#8217;s seized assets, including a racing boat, three Ferraris, a 1969 Corvette L88, two “high-end” Mercedes-Benz vehicles, and a Shelby Super Snake Musta</strong>ng</span></h6>
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<h1 class="posttitle"><img class="alignnone wp-image-282688" src="https://konniemoments.com/wp-content/uploads/2017/11/Richard-Scott-arrest-1.png" alt="Richard Scott arrest 1" width="908" height="707" /></h1>
<h6 class="posttitle">Some of the &#8216;assets&#8217; authorities seized after feds arrested Richard Scott, Wednesday in Santa Monica, Calif</h6>
<p>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.<br />
Prosecutors say Richard Scott, the owner of Westside Services LLC, was arrested without incident Wednesday morning, at his home in Santa Monica, California<br />
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.<br />
The vast majority of the activity authorized under the contract took place at the West Los Angeles VA Medical Center near Westwood, prosecutors said.<br />
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.</p>
<h6><strong><img class="alignnone wp-image-282704" src="https://konniemoments.com/wp-content/uploads/2017/11/Feds-seized-high-end-vehicles-during-Thursdays-arrest-of-Richard-Scott-who-is-suspected-of-defrauding-VeteransAffairs-of-11-Million-3.jpg" alt="Feds seized high end vehicles during Thursday's arrest of Richard Scott who is suspected of defrauding VeteransAffairs of $11 Million 3" width="679" height="691" />Fruit of the poisoned tree: Black Ferrari was just one of several high end vehicles Feds seized during Thursday&#8217;s arrest of Richard Scott </strong></h6>
<h6><strong><img class="alignnone wp-image-282705" src="https://konniemoments.com/wp-content/uploads/2017/11/Feds-seized-high-end-vehicles-during-Thursdays-arrest-of-Richard-Scott-who-is-suspected-of-defrauding-VeteransAffairs-of-11-Million-2.jpg" alt="Feds seized high end vehicles during Thursday's arrest of Richard Scott who is suspected of defrauding VeteransAffairs of $11 Million 2.jpg" width="675" height="565" />Ferrari No. 2 seized by Feds seized high end vehicles during Thursday&#8217;s arrest of Richard Scott who defrauded VA of millions</strong></h6>
<p>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.<br />
Scott ai accused of under-reported revenue to the <a class="PrettyLink hashtag customisable" dir="ltr" href="https://twitter.com/hashtag/VeteransAffairs?src=hash" rel="tag" data-query-source="hashtag_click" data-scribe="element:hashtag"><span class="PrettyLink-prefix">#</span><span class="PrettyLink-value">VeteransAffairs</span></a> 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.</p>
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<h6 class="Tweet-text e-entry-title" dir="ltr" lang="en"><strong><img class="alignnone size-full wp-image-282708" src="https://konniemoments.com/wp-content/uploads/2017/11/Feds-seized-high-end-vehicles-during-Thursdays-arrest-of-Richard-Scott-who-is-suspected-of-defrauding-VeteransAffairs-of-11-Million-1.jpg" alt="Feds seized high end vehicles during Thursday's arrest of Richard Scott who is suspected of defrauding VeteransAffairs of $11 Million 1.jpg" width="680" height="377" />Ferrari No 3 seized by Feds during Thursday&#8217;s arrest of Richard Scott in Santa Monica, Calif</strong></h6>
<p dir="ltr" lang="en">As part of the scheme to defraud the VA, Scott allegedly began bribing the VA contracting contract administrator, Ralph Tillman, $130,530 to overlook the fraud, FBI special agent Michael Torbic alleged in an affidavit.<br />
Tillman was charge of the contract in 2003. Scott continued to bribe him on a regular basis until he retired abruptly in 2014 after he was confronted by federal agents, according to the affidavit.<br />
Tillman eventually admitted he continued to take what he called ”hush money” after his retirement; “He was definitely bribing me and I was definitely looking the other way,” the official said in the affidavit.<br />
Tillman has not been charged; the investigation is ongoing.</p>
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<p>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.<br />
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.</p>
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