judge has delayed last ladwp sentencing due to huge state bar investigation

it's likely former city lawyer paul paradis will go to jail, but the judge wants to make sure he can cooperate with the state bar's unprecedented investigation.

The State Bar of California’s investigation into attorney misconduct over the collusive LADWP billing scandal is huge, so huge that a federal judge this morning delayed yet again the criminal sentencing of a former city attorney so that the investigation can wrap up with his cooperation.

U.S. District Judge Stanley Blumenfeld said he is “likely” to send Paul Paradis to prison after pleading guilty to accepting a kickback as part of the collusive DWP billing lawsuit he drafted. But first Blumenfeld wants to make sure Paradis can continue to cooperate in the ongoing State Bar investigation into the related litigation collusion.

As I’ve written before, this State Bar investigation is pretty big, if not the biggest in the Bar’s history, comprising of over 10 private and government attorneys who worked for the City Attorney’s Office and the Department of Water and Power. The charges being investigated include candor with court, deceit and collusion, conflict, up to moral turpitude, which is grounds for disbarment. The Bar is trying to redeem itself in the eyes of the public after failing to address numerous complaints against Tom Girardi, the celebrity lawyer charged with embezzling from clients.

“I’m concerned whether the State Bar is moving as expeditiously as possible,” said Blumenfeld. “Let me be clear: I have been presented information that raises significant concerns.”

The judge summoned trial counsel from the State Bar to find out more details about the investigation and how it could be hampered if Paradis were to be sent to prison in the near future. Paradis’ has been a huge help to them. Initially, investigators were pretty guarded and took some prodding from the judge.

Charles Calix, bar trial counsel who has been investigating attorneys involved in the collusive litigation, told the judge it’s “the largest group by several factors of attorneys accused of misconduct. Mr. Paradis has provided an extraordinary amount of assistance to the State Bar.”

Calix said bar investigators are “relative newcomers” to the case, having largely sat it out while the federal government and special master finished their investigations. Calix said their investigation began “several months” after the July 2021 special master’s report into the collusion. So that puts the investigation as having gone on for over a year and a half.

“When will this conclude?” asked the judge.

“In the next couple months we’ll see movement toward some individuals,” said Calix. He later said it could take between 3-5 months, and 6-8 months for the remaining attorneys. Calix said some attorneys have pleaded the 5th Amendment Against Self Incrimination as a tactic to run out the statute of limitations on certain charges.

The judge then presented some options. Either remand Paradis or delay his sentencing. Paradis’ attorney David Scheper of Winston & Strawn said cooperating remotely wouldn’t be sufficient. Any potential testimony by Paradis could elicit “18 potential respondents” to cross examine Paradis, according to Scheper. He’s maintained Paradis shouldn’t go to jail at all given his cooperation with both government prosecutors and the Bar.

The judge ultimately set a September 26 date for sentencing.

“I’m willing to be patient…but if there is no end in sight I’m likely to continue with sentencing,” said Blumenfeld.

We Wait Some More

Prosecutors have not gone after, or even named, who in the city attorney’s office directed the collusive lawsuit, as well as which “senior officials” directed an extortion payment to conceal it. After the hearing, prosecutors deferred comment to their press officer. State Bar investigators also declined comment. I’ve given up even asking Feuer. He told a KNX News, “I’m not commenting on this.”

We have some insight into how the judge feels about this saga. He’s expressed concern that more figures haven’t been charged. And he recently declined to send former city attorney official Thomas Peters to prison, largely based on being unable to see the damage caused by the collusive lawsuit. With Paradis it’s looking to be a little different.

“The court has struggled whether to allow the cooperation credit the government is seeking. I do recognize Mr. Paradis’ case has been unquestionably significant, and can continue to be significant,” said the judge.

Paradis’ lawyers say Paradis should be getting even more sentencing credit than prosecutors are asking for. He put in over 2,000 hours of work, leading to the prosecution of former DWP General Manager David Wright, IT executive David Alexander and Peters. Via his plea agreement to one count of bribery, Paradis admitted to his involvement in three bribery schemes involving LA officials.

“Crime doesn’t pay. Cooperation does,” said Paradis’ attorney. “When Mr. Paradis saw Peters was the fall guy for folks that he reported to—that appalled him,” said Scheper.

That appeared to light a fire under Paradis, who ramped up providing information as to the culpability of several lawyers and city officials.

Prosecutors argue Paradis should spend 18 months in prison despite Paradis “extraordinary” cooperation because his conduct was worse than all three of the city officials charged. But Paradis’ attorneys noted that prosecutors calculated his total offense level at 36, while the total level for Alexander, Peters and Wright is 91.

Paradis pleaded guilty to accepting a $2.1 million kickback after arranging for a puppet attorney to sue the city of Los Angeles as part of a litigation strategy to shift blame off city leaders over a malfunctioning billing system at the Department of Water and Power. The fake lawsuit allowed the city to run interference on a bunch of other lawsuits it was facing, which were wiped out as a result of its controlled Jones v. city of Los Angeles settlement. Paradis, along with his co-counsel Paul Kiesel, also stood to gain 20% of any damages the city stood to gain against the global consulting company Pricewaterhouse Coopers, which helped the city with the rollout with of the malfunctioned billing system nearly 10 years ago.

But ever since I broke this story over four years ago, a fight has taken place over who is to blame. It has been Paradis’ contention that DWP and the city attorney’s office authorized the collusive lawsuit and no-bid contracts. In a letter to the judge, he named Feuer as one of the “senior members” of the city attorney’s office who directed the extortion payment. The city has denied its involvement, calling Paradis a “rogue” actor and a “criminal.” Feuer said he doesn’t remember the extortion meeting.

In addition, cyber security companies that Paradis had an interest in—Aventador Utility Solutions and Ardent Cyber Solutions—scored millions in no-bid cyber security contracts to help fix DWP’s IT issues. DWP has put in a $30 million victim restitution claim, but prosecutors said Tuesday they will not pursue the money on account of Paradis being broke and a determination that ratepayers “weren’t shortchanged.”