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Tyrone Freeman Debacle Hits Home in Compton
City launches investigation into potential impropriety involving three housing deals it made with the embattled former head of an SEIU local

By Allison Jean Eaton
Bulletin Editor

COMPTON – City officials here are reeling following the news late last month that the head of a Service Employees International Union (SEIU) local stepped down amid controversy over his alleged misuse of union funds.

That’s because the city over the past several years entered into several contracts with his purported nonprofit that landed Freeman at a discounted price three attractive pieces of land on which the company has and is currently building low-income housing.

City Atty. Craig Cornwell said in a telephone interview last Friday that the city is looking into three transactions it made with Freeman’s Long-Term Care Housing Corp.

A City Hall source said Freeman misrepresented himself in asserting his organization had nonprofit status, which resulted in the properties being sold to his organization for $1-per-lot.

“Without compromising the investigation, we’re looking into all angles,” Cornwell said.

The transactions took place in roughly in 2004 and 2007, he said. The two 2004 ventures are complete, while the third – located at Alameda and Myrrh streets – is in the midst of preliminary construction.

“We are in the initial stages of our investigation, but have discovered reason to believe that these real estate transactions may have been based on false statements concerning the validity of Freeman’s nonprofit status when they were undertaken,” the new city attorney said in a statement. “We will be looking into the subject transactions and will give the entities involved an opportunity to provide information concerning these transactions.”

Cornwell at yesterday’s council meeting requested and received the City Council’s approval to further investigate the financial relationship between Freeman and his Long-Term Care Housing Corp. The investigation aims to determine if transactions with this organization led to the misuse of public funds in addition to taking whatever legal steps necessary to recover any public monies that might have been used inappropriately.

The investigation was sparked after Freeman, formerly the president of the state’s largest union local, stepped down from his position at its helm after an investigation by the Los Angeles Times revealed companies owned by his wife and mother-in-law had been granted substantial contracts with both the union and a related charity.

Additionally, according to the Times, the local spent nearly $300,000 last year on a Four Seasons Resort golf tournament, pricey restaurants, a Beverly Hills cigar club and Hollywood talent firm William Morris Agency.

“We want to know if the city of Compton has been harmed or victimized in any way and bring that to light,” said Cornwell.

Freeman, who headed the United Long-Term Care Workers local, has in statements denied any wrongdoing.

“In order to ensure that any investigation of the allegations is fair and free from any question of interference or influence, I am taking a leave of absence effective immediately for the duration of the investigation,” Freeman said in an Aug. 21 statement. “I believe these steps will allow our union to continue to serve the best interests of our membership during this time.”

Mayor Eric J. Perrodin said he backs Cornwell’s move to continue his investigations into Freeman’s dealings in Compton. He added that he fully supports the complete disclosure of the investigation’s findings upon completion.

“The concept of low-income, affordable housing is great,” said Councilman Isadore Hall. “However, I am outraged over the most recent revelations about Mr. Freeman, and, if this investigation reveals any inappropriate action, our City Council will take a no-nonsense position toward these actions and will hold all parties accountable.”

Asked if the city will sue Freeman and his alleged nonprofit if wrongdoing is discovered, Cornwell said he is “seeking authority to pursue all legal remedies available.

“But again, the investigation is in a preliminary stage, and we would like to give all participants the opportunity to contribute to the investigation,” Cornwell said.