SEIU Calls for Attorney General to Investigate $22 Million in Extra Costs by Nonprofit

Today the Center for Public Accountability sent its report on Tarzana Treatment Center to the office of California Attorney General Jerry Brown for possible investigation. A formal review of these findings by attorney Eileen B. Goldsmith, a leading expert on charitable trust law, concluded that “there are substantial grounds to ask the Attorney General to initiate investigation and possibly take legal action against Tarzana’s officers and directors.” In a letter attached to the report, SEIU 721 Executive Director John Tanner called on state Attorney General Jerry Brown to consider an investigation, which could lead to: •         Replacing board members who abused the public trust; •         Establishing a new management team; •         Voiding any and all self-dealing real estate deals; •         Ordering three executives to pay back millions of dollars to Tarzana Treatment Center The County of Los Angeles is also investigating excessive rent paid by the treatment facility. Tarzana could have saved millions of dollars if it had bought the buildings itself rather than paying inflated rents to companies owned by its executives and board members.