A Los Angeles company that built more than 50 low-income housing projects in California is under federal investigation into claims that it bilked taxpayers out of millions and built potentially unsafe apartments.
A court-appointed receiver for Advanced Development and Investment Inc. claims that the company submitted phony bills to cities, failed to keep proper records on more than $650 million and transferred as much as $80 million to personal bank accounts.
The Los Angeles Times says the report was turned over to the U.S. attorney's office and the company is under investigation by a federal grand jury and various agencies.
A call to the receiver, David Pasternak, on Wednesday was not immediately returned.
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