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UPDATE: FBI Agents Raids LADWP, LA City Hall over DWP Billing System

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Raids were carried out by FBI agents in LA at both LA City Hall in the City Attorney's Office and the LADWP office in downtown Los Angeles Monday morning.

Federal sealed search warrants were served at both locations. No arrests have been made.


Authorities earlier Monday declined to specify the nature of the search.

The raids at the LADWP and LA City Attorney's offices were related to warrants served to staff over the class-action litigation and settlement surrounding the troubling rollout of new DWP billing system in 2013 and a separate city's lawsuit against PricewaterhouseCoopers.  

A warrant used for the searches says they were part of a probe into the utility's troubled rollout of the new billing system that led to an eventual lawsuit and big settlement.

The City Attorney spokesperson said in a statement Monday afternoon that: "The warrants served on our staff relate to issues that have arisen over the class action litigation and settlement surrounding the DWP billing system, and the City's lawsuit against PwC. We have and will continue to cooperate fully with the expectation that the investigation will be completed expeditiously."

#FBIraids: "The warrants served on our staff relate to issues that have arisen over the class action litigation and settlement surrounding the DWP billing system, and the City's lawsuit against PwC. We have and will continue to cooperate fully." - @CityAttorneyLA spox. @KNX1070

— Claudia Peschiutta (@ReporterClaudia) July 22, 2019

A spokesperson with the FBI in Los Angeles says, "We are confirming a search warrant at Los Angeles DWP in downtown Los Angeles, but are prohibited from commenting further because affidavits involved in the warrant are sealed."

It's part of an ongoing investigation but few details are available because the warrant is under seal.

There is an ongoing federal corruption probe that prompted raids - late last year - at the offices of Councilmember Jose Huizar. There have been no arrests or charges in that case.

A different investigation is focusing on the handling of a $67 million dollar settlement worked out with ratepayers over DWP billing errors.

The LA Times reports a court is looking at whether attorneys worked both sides of the deal and benefited financially from it. It's unclear whether today's raids have anything to do with either of those investigations.

There have been no comments from DWP or the City Attorney.

A spokesman for Eric Garcetti says in a statement "The Mayor believes that any criminal wrongdoing should be investigated and prosecuted. His expectation is that any City employee asked to cooperate will do so fully and immediately."

#FBIraids: Garcetti spox says in an email: "The Mayor believes that any criminal wrongdoing should be investigated and prosecuted. His expectation is that any City employee asked to cooperate will do so fully and immediately." @KNX1070

— Claudia Peschiutta (@ReporterClaudia) July 22, 2019

Here at #LADWP, search warrants were being served today as part of an ongoing investigation. One of 3 people walking in the door put on an #FBI jacket as he entered. @KNX1070 pic.twitter.com/PeR3GQgG61

— Jon Baird (@KNXBaird) July 22, 2019

Federal agents are reportedly serving search warrants today at #LADWP and at #LosAngelesCityHall, as part of what has been reported as an "ongoing investigation". The #FBI went in minutes ago. @KNX1070 pic.twitter.com/FlBbDrqtTo

— Jon Baird (@KNXBaird) July 22, 2019

UPDATE Federal search warrants also being served at L.A. City Hall in addition to the Los Angeles Department of Water & Power. The warrants are under seal and no comment from officials other than authorities are seeking evidence as part of an ongoing investigation. No arrests.

— Andrew Blankstein (@anblanx) July 22, 2019