INTRADEPARTMENTAL CORRESPONDENCE

June 29, 20101.17

TO: The Honorable Board of Police Commissioners

FROM: Chief of Police

SUBJECT: TRANSMITTAL OF THE LOS ANGELES COUNTY FISCAL YEAR2010-11 REAL ESTATE FRAUD PROSECUTION GRANT PROGRAM

RECOMMENDED ACTIONS

1. That the Board of Police Commissioners (Board) REVIEW and APPROVE this report.

2. That the Board TRANSMIT the attached grant application, pursuant to Administrative CodeSection 14.6(a), to the Mayor, Office of the City Administrative Officer (CAO), Office of theChief Legislative Analyst and to the City Clerk for committee and City Councilconsideration.

3. That the Board REQUEST the Mayor and City Council to:

A. AUTHORIZE the Chief of Police or designee to ACCEPT the grant award for theLos Angeles County Fiscal Year 2010-11 Real Estate Fraud Prosecution Program in theamount of $350,000 for the period July 1, 2010 to June 30, 2011;

B. AUTHORIZE the Chief of Police or designee to execute an Award Agreement with theCounty of Los Angeles, subject to City Attorney approval as to form and legality;

C. AUTHORIZE the LAPD to utilize the Real Estate Fraud Grant funds in accordance withthe 2010-2011 Grant Acceptance; to fund programs which deter, investigate, andprosecute real estate fraud for the period July 1, 2010, through June 30, 2011;

D. AUTHORIZE the Controller to set up the grant receivable of $350,000 and establish anappropriation account to be determined by the Controller's Office within Fund No. 339,Department No. 70, for the disbursements of the Real Estate Fraud Prosecution Programgrant;

The Honorable Board of Police CommissionersPage 21.17

E. AUTHORIZE the Controller to:

a. Increase appropriations as needed from Fund No. 339, Department No. 70,appropriation account to be determined, to Fund No. 100, Department No. 70,account number and amount as follows:

Account No. 1012, Sworn Salaries, $209,896Account No. 1092, Sworn Overtime, $15,000

b. Transfer appropriations within Fund No. 339, Department No. 70, as follows forthe Fringe Benefits:

From: AmountAppropriation account to be determined $102,072To: AmountF299 $102,072

F. AUTHORIZE the LAPD to prepare the Controller's instructions for any technicaladjustments, subject to the approval of the CAO, and AUTHORIZE and INSTRUCT theController to implement the instructions.

DISCUSSION

This is the eleventh year of funding for the Los Angeles County Real Estate Fraud ProsecutionProgram. The Program is funded from fees paid to Los Angeles County for filing real estaterelated documents in accordance with Government Code Section 27388. It is anticipated thatthis filing fee will continue to be charged and that this grant award will be renewed annually.Due to a decrease in real estate sales, the funding has been reduced from previous years,however, there was a $50,000 increase of funding for the Fiscal Year 2010-11 grant award.

The Real Estate Fraud Unit (REFU), Commercial Crimes Division, handles all white-collar realestate crimes within the City of Los Angeles. The REFU opened 115 new cases in calendar year2009, and made 11 arrests in conjunction with the cases filed by REFU detectives. The REFUhas established a reputation within the private sector of the real estate community as a valuableand experienced unit.

The grant will pay 100 percent of salary and fringe benefits for one Detective III position and83.33 percent of salary and fringe benefits for one Detective II position, and fund relatedovertime expenses for four Investigative Detectives. It will also fund travel and training, cellularphones, equipment, subscription services, and required office supplies.

The Honorable Board of Police CommissionersPage 31.17

If you have any questions, Police Administrator Maggie Goodrich, Commanding Officer,Information Technology Bureau, is available to assist you at (213) 486-0370.

Respectfully,

CHARLIE BECKChief of Police

Attachments

INTRADEPARTMENTAL CORRESPONDENCE

June 29, 20101.17

TO: Chief of Police

FROM: Commanding Officer, Information Technology Bureau

SUBJECT: TRANSMITTAL OF THE LOS ANGELES COUNTY FISCAL YEAR2010-11 REAL ESTATE FRAUD PROSECUTION GRANT PROGRAM

Attached for your review and approval is a transmittal to accept the grant application for the FiscalYear 2010-2011 Real Estate Fraud Prosecution Grant Program. The Los Angeles PoliceDepartment has been awarded $350,000 by the County of Los Angeles, which is intended to assistthe Department in staffing two full-time investigative positions of the Real Estate Fraud Unit(REFU). It will also provide additional program funding to investigate white-collar real estatefraud crimes. The award period begins July 1, 2010, and ends on June 30, 2011.

If there are any questions regarding this matter, a member of your staff may contact SeniorManagement Analyst Nancy Cammarata, Contracts and Grants Section, at (213) 486-0380.

MAGGIE GO DRICH, Police AdministratorCommanding OfficerInformation Technology Bureau

Attachments

WILLIAM T FUJIOKAChief Executive Officer

MARK RIDLEY-THOMASSecond District

Chief Charlie BeckLos Angeles Police Department150 North Los Angeles Street, Room 619Los Angeles, California 90012

Dear Chief Beck:

ZEV YAROSLAVSKYThird District

DON KNABEFourth District

MICHAEL D. ANTONOVICHFifth District

e ine itety Chief Executive Officer

County of Los AngelesCHIEF EXECUTIVE OFFICE

Kenneth Hahn Hall of Administration500 West Temple Street, Room 713, Los Angeles, California 90012

(213) 974-1101htlyficeo.lacounty.gov

May 28, 2010Board of SupervisorsGLORIA MOLINAFirst District

2010-11 REAL ESTATE FRAUD PROSECUTION GRANT

This correspondence is to advise you that your Real Estate Fraud Prosecution Grant Applicationfor the period of July 1, 2010 through June 30, 2011, has been approved by the Real EstateFraud Prosecution Trust Fund Committee for the amount of $350,000. Funds for this grant areat a historical low due to significant declines in real estate transactions.

.c Please complete and return the enclosed Grant Acceptance Form and a revisedtudget basedon the new grant amount no later: than June 30, 2010. Both ;.documents must be submitted toaccept the grant. The Grant Acceptance Form must be signed by you, as the Chief of Police ofyour Department.

Payment of grant funds shall- be made subsequent to the receipt of quarterly invoices.Also, enclosed is the Grant Reporting Form which must be completed and returned bySeptember 1, 2011, 60 days following the end of the grant period. Correspondence should bemailed . or. fa.xed to. Real Estate Fraud...Prosecution Trust Fund Committee, c/o -Los -Angeles.-County Chief Executive Office, 500 West Temple Street, Room 754, Los Angeles, California90012, Attention: Patricia Vallejo, Fax (213) 217-5112.

All inquiries should be directed to the Real Estate Fraud Prosecution Trust Fund CommitteeLiaison, Patricia Vallejo, at (213) 974-2535 or at pvalleioe.ceo.lacounty.dov.

Sincerely,

WILLIAM T FUJIOKAChief Executive Officer

WTF:BC:JWSW:PV:cc

Enclosures

To Enrich Lives Through Effective And Caring Service'

Please Conserve Paper— This Document and Copies are Two-Sidedlntra-County Correspondence Sent Electronically Only

2010-11 GRANT ACCEPTANCE FORMREAL ESTATE FRAUD PROSECUTION PROGRAM

Agency: City of Los Angeles, Police Department

Address: 100 West First Street, Suite 842, Los Angeles, CA, 90012

Telephone: (213) 486-0380

Purpose of Grant: Investigation and Prosecution of Real Estate Fraud Cases

Amount Awarded: $350,000

I understand by the acceptance of these funds, the above agency will:

Utilize the funds for the prosecution and/or investigation of real estate fraudcases;

• Ensure that receipt of these funds will not be used to offset a reduction in anyother source of funds;

• Submit reimbursement claims, at the end of each quarter (if any funding wasexpended during that quarter), to address at the bottom of this form;

• Understand that award of these funds is subject to the availability of fundsdeposited into the Real Estate Fraud Trust Fund and that in the event fundsdeposited are insufficient to cover all grant funds awarded, the Real Estate FraudProsecution Trust Fund Committee may reduce each agency's grant award on apro-rata basis;

• Attend the Real Estate Fraud Task Force monthly meeting; and

• Request carryover of unspent grant funds by May 1, 2011 if investigations and/orprosecutions are still in progress. Requests to carryover funds for salaries andemployee benefits will not be allowed unless the expenditures were incurredduring the authorized grant period.

Agency Director Date

Please return this completed form by June 30, 2010 to:

Real Estate Fraud Prosecution Trust Fundc/o Los Angeles County Chief Executive Office

Attn: Patricia Vallejo (213) 974-2535 Fax: (213) 217-5112500 West Temple Street, Room 754

Los Angeles, California 90012

Grantacceptance.form

Los Angeles County Real Estate Fraud Prosecution Program2010-11 Grant Application (revised page)Page 4

Upon receipt of grant funding, Commercial Crimes Division (CCD) will fund 2 full-timeinvestigative positions assigned exclusively to the Real Estate Fraud Unit (REFU). Theinvestigative positions are one Detective III, who is the Unit's supervisor and a subject matterexpert, will be funded at 100 percent including fringe benefits, and one Detective II investigatorwho will be funded at 83.33 percent including fringe benefits. Also included in PersonnelCosts is $15,000 to be utilized by four of the Detective investigators for overtime. The annualsalaries, employee benefits and overtime calculations are provided below.

Personnel/Salaries:

Detective III 1 $9,891.90x 12= $118,703Detective II 1 $9,119.32x 10= 91,191

$209,896Fringe Benefits:

Detective III 1 $118,703 x .4863% = $57,725Detective II 1 $ 91,193 x .4863% = 44,347

$102,072Overtime:187.5 hours x $80.00/hr. = $15,000

Total Personnel $326,968Operating Costs:

Travel/Training $7,000Subscription Service $9,032Cellular Phones/Equipment $4,000Office Supplies $3,000

Total Operating Costs $23,032

Total Cost S350,000

Additionally, included in the budget is $7,000 for training and travel costs. The REFU utilizestwo outside vendors for service support for the Unit. The annual costs of those services areestimated at $13,032. Approximately $3,000 is needed for office supplies and miscellaneousexpenses. The total additional costs requested are $23,032.

The REFU, has operated with funding from the Los Angeles County Real Estate FraudProsecution Program for approximately ten years. The LAPD's original resolution authority wasfor five full-time positions whose reponsibility was to investigate real estate fraud cases on aCitywide basis. Due to City and County cutbacks, REFU currently operates with four full-timepositions.

REFU opened 115 new cases in calendar year 2009, in addition to the cases carried over from2008. The REFU made 9 arrests in conjunction with the cases filed by REFU detectives.

LOS ANGELES COUNTY REAL ESTATE FRAUD PROSECUTION PROGRAM

2010-11 GRANT APPLICATION

Please complete all the information requested by this grant application. The grant fundscan only be used for investigation and deterrence of real estate fraud (Government CodeSection 27388[b]). Grant funds cannot be used to offset a reduction in any other sourceof funds (Government Code Section 27388[g]). This grant will fund programs fromJuly 1, 2010 through June 30, 2011. Please return the completed application by April 30,2010 to:

Real Estate Fraud Prosecution Trust Fund CommitteePatricia Vallejo, Analyst

500 West Temple Street, Room 754Los Angeles, California 90012

(213) 974-2535

Name: Detective III Eugene Tapia, REFU

Agency: Los Angeles Police Department

Address: 100 West First Street, Room 533, Los Angeles, California 90012

Telephone: (213) 486-8715 Fax Number: (213) 486-6620

Purpose of Grant:

The Los Angeles Police Department (LAPD), Real Estate Fraud Unit (REFU), will utilize

grant funding to support its four, full-time, investigative positions whose responsibility is

to investigate real estate fraud cases on a Citywide basis. The secondary purpose is to

support the investigators in this assignment by providing funding for expenditures related

to overtime, travel, training, supplies and equipment. The total amount requested for

salaries, benefits, travel, training, supplies, equipment and support services is $704,374.

Amount Requested: $704,374

Los Angeles County Real Estate Fraud Prosecution Program2010-11 Grant ApplicationPage 2

On a separate page, please detail how the amount of funding requested will be expended, includingnumber of positions, salaries and employee benefits, equipment, supplies, administrativeoverhead, and/or any other expenditure by type.

The statute requires that the law enforcement agency receiving funds either (please check ifappropriate):

A. Have a unit, division, or section devoted to the investigation or prosecution of realestate fraud, or both, which has been in existence for at least one year prior to theapplication date.

B. Have on a regular basis, during the three years immediately preceding theapplication date, accepted for investigation or prosecution, or both, and assignedto specific persons employed by the agency, cases of suspected real estate fraud,and actively investigated and prosecuted those cases.

Please describe your department's current real estate fraud investigation program, and ifapplicable, the length of time this unit has been devoted to investigating these cases. Please alsostate the name of the supervisor of your real estate fraud investigation/prosecution unit and thenumber of staff positions assigned to it.

Please refer to page 4 and 5

Los Angeles County Real Estate Fraud Prosecution Program2010-11 Grant ApplicationPage 3

Number of real estate fraud cases currently under investigation: 51

Amount of aggregated monetary losses suffered by victims in real estate fraud cases currentlyunder investigation: $22,649,164

Number of real estate fraud cases filed with the court(s) in either calendar year 2009 or FiscalYear 2008-2009: 15 presented, 7 filed

Number of victims involved in the cases filed with the court(s) in either calendar year 2009 orFiscal Year 2008-2009: 15 victims

Amount of aggregated monetary losses suffered by victims in real estate fraud cases filed with thecourt(s) in calendar year 2009 or Fiscal Year 2008-09: $10,617,245

Bill WilliamsSignature of th d Representative

Commanding Officer, Commercial Crimes Division

Title

May 4, 2010

Date

Los Angeles County Real Estate Fraud Prosecution Program20 10-1 1 Grant ApplicationPage 4

Upon receipt of grant funding, Commercial Crimes Division (CCD) will fund four full- timeinvestigative positions assigned exclusively to the Real Estate Fraud Unit (REFU). Theinvestigative positions are one Detective III, who is the Unit's supervisor and a subject matterexpert, and three Detective II investigators. Also included in Personnel Costs is $15,000 to beutilized by the four Detective investigators for overtime. The annual salaries, employeebenefits and overtime calculations are provided below.

Personnel:

Detective III 1 $9,891.90x 12=Detective II 3 $9,119.32x 12 x 3 =

$118,70317R296

$446,999Fringe Benefits:

Detective III 1 $118,703 x .4863%= $57,725Detective II 3 $328,296 x .4863% = 159,650

$217,375Overtime:187.5 hours x $80.00/hr. = $15000

Total Personnel $679,374Operating Costs:

Travel/Training $7,000Subscription Service $10,000Cellular Phones/Equipment $5,000Office Supplies $3,000

Total Operating Costs $25,000

Total Cost S704,374

Additionally, included in the budget is $7,000 for training and travel costs. The REFU utilizestwo outside vendors for service support for the Unit. The annual costs of those services areestimated at $15,000. Approximately $3,000 is needed for office supplies and miscellaneousexpenses. The total additional costs requested are $25,000.

The REFU, has operated with funding from the Los Angeles County Real Estate FraudProsecution Program for approximately ten years. The LAPD's original resolution authority wasfor five full-time positions whose reponsibility was to investigate real estate fraud cases on aCitywide basis. Due to City and County cutbacks, REFU currently operates with four full-timepositions.

REFU opened 115 new cases in calendar year 2009, in addition to the cases carried over from2008. The REFU made 9 arrests in conjunction with the cases filed by REFU detectives.

Los Angeles County Real Estate Fraud Prosecution Program2010-11 Grant ApplicationPage 5

These cases continue to be complex and complicated, usually developing into additionalvictims being located. It takes approximately 12-16 months to complete the cases from thetime of reporting. The epidemic of Foreclosure Fraud has intensified the number of reportedcrimes. Identity Theft also continues to be a frequent starting point for real estate cases.

The REFU has established a valuable and experienced reputation within the private sector of thereal estate community. Frequently, the REFU receives calls from private industryregarding possible suspects in the act of committing real estate fraud. Other law enforcementagencies also contact the REFU for advice and direction.

Detective III Eugene Tapia, Serial No. 22894, is the current supervisor for the REFU.