LOS ANGELES (KNX) — A former executive with the Los Angeles Department of Water and Power pleaded guilty on Tuesday to a federal bribery charge connected to an investigation of its billing practices.
David H. Wright, 62, of Riverside, admitted to accepting bribes from a lawyer in exchange for his support of a $30 million DWP contract, according to federal prosecutors. The lawyer, Paul Paradis, has also agreed to plead guilty to federal bribery charges stemming from the investigation.
The case against Wright and Paradis arose from an investigation into the rollout of a DWP billing system and resulting customer litigation. Many customers reported receiving inflated bills.
Wright was the general manager of the DWP from 2016 to 2019, when he was removed from office by L.A. Mayor Eric Garcetti after the FBI raided both the DWP and City Attorney’s Office.
Paradis had a $6 million DWP contract to provide project management services to rectify the botched billing system. But he was also concurrently representing a DWP customer who planned to sue the city over the debacle.
Paradis admitted in his own plea agreement that he accepted over $2 million in kickbacks from another lawyer to represent his ratepayer client in a suit against the DWP. That suit eventually turned into a class action that bench-watchers described as ending in an overly favorable ruling for the city.
Wright and Paradis struck their deal in 2017, according to prosecutors. Wright supported a no-bid $30 million DWP contract for Paradis’ L.A.-based company Aventador Utility Services LLC. In exchange, Paradis agreed to give Wright a million-dollar-per-year job as the CEO once he left DWP.
Wright also pushed members of the DWP to support the Aventador contract.
In his plea deal, the former executive admitted that he lied to federal investigators three years ago when he told them he did not have any financial interest in Paradis’ work. He also said he destroyed evidence in an effort to obstruct the investigation.
Along with Wright and Paradis, Thomas H. Peters, 55, of Pacific Palisades, a former senior official at the City Attorney’s Office, and David F. Alexander, 54, of Arcadia, a former senior IT official with the DWP, have agreed to plead guilty in connection with the corruption case.
Related
