Los Angeles Mayor May Have Major IRS Problem

News that Los Angeles Mayor Antonio Villaraigosa received as much as $100,000 in free tickets to various sports and other events, but either lost or threw away the documentation detailing who gave him the tickets and why, could be a major tax problem for the mayor.

Tax accountants I spoke to suggest that more than likely the Mayor should have reported the free tickets as income on his tax reforms. The only reason the Mayor could justify not putting them on his tax return is if he was at an event in an official capacity and received the tickets from an "official" source. But because his office says they do not have the records backing up who gave him the tickets, it would be difficult for the Mayor to prove he received the tickets as part of his official duties, and the IRS would likely disallow any such claim.

Thus, the Mayor could be subject to tax bill in the tens of thousands of dollars plus penalties.

LA Mayor Antonio Villaraigosa Accepted Up to $100,000 Worth of Tickets

File under: How They Get Corrupted.

Los Angeles Mayor Antonio Villaraigosa accepted free seats to over 80 events, including Lakers games, where the average Joe has to pay big bucks to get into the venues.

According to an L.A. Weekly investigation, Villaraigosa lost or threw away paperwork showing who gave him the freebies, how many tickets he accepted to each show, ceremony or game, and the value of free alcohol, food and valet parking he was provided.

It appears that the Mayor violated city and state political anti-corruption laws which require disclosure of gifts and records are required to be kept. Further, Villaraigosa can't accept more than $100 annually from anyone doing business with L.A. The mayor's Lakers tickets appeared at least in some instances to be floor seats which generally sell for $2,000 per seat and up.

Here's the list that LA Weekly assembled of free tickets the mayor received:

Date -- Event -- Venue -- Single Ticket Cost (Far higher if mayor took multiple tix to event)

11/3/05 Lakers v. PH Suns Staples Center -- up to $2,100
9/10/05 Aretha Franklin Concert -- cost unknown
11/3/05 Latin Grammys Shrine -- up to $500
4/3/06 Dodger's Opening Day Dodgers Stadium -- up to $400
11/28/06 Lakers vs. Bucks Staples -- up to $2,100
2/6/06 Musi-Cares Pre-Grammy Concert -- cost unknown
2/8/06 Grammy Awards -- cost unknown
2/26/06 Jose Jose Concert -- cost unknown
3/2/06 Carlos Santana Concert for D. Huerta -- cost unknown
3/5/06 78th Academy Awards Kodak Theatre -- $4,200 per seat
4/13/06 Luis Miguel Concert/Presentation -- cost unknown
6/27/06 BET Awards Show Shrine Auditorium -- cost unknown
7/8/06 Bebe, Reyli, Mexican Institiute Hollywood Bowl -- up to $80
7/22/06 Grammy Foundation Dinner/Concert -- cost unknown
7/29/06 Reventon Super Estrella Concert Coliseum -- up to $150
8/15/06 Shakira Concert Staples Center -- Tix started at $19.50
8/26/06 Smokey Robinson Concert Greek Theatre -- up to $80
8/27/06 58th Emmy Awards Shrine Auditorium -- (2) Tix at $1,300 each
9/30/06 Pepe Aguilar Concert -- unknown, but cost in 2010 at Gibson was $135
11/11/06 Vicente Fernandez Concert -- unknown, but cost in 2010 at Gibson was $300
12/22/06 George Lopez Concert -- cost unknown
4/15/07 LA Dodgers Game Dodgers Stadium -- up to $450
1/12/07 Lakers vs. Clippers Staples -- up to $2,200 (floor seats)
1/28/07 13th Annual SAG Awards -- cost unknown
2/3/07 Director's Guild Awards -- mayor presented Aldrich Award, seat cost $175
2/11/07 49th Annual Grammy Awards -- cost unknown
2/17/07 Mana Concert -- cost unknown
2/25/07 79th Annual Academy Awards $4,200 per seat -- entire Villaraigosa family attended
6/26/07 BET Awards Show -- cost unknown
9/16/07 59th Annual Prime Time Emmy Awards -- 2 tix up to $1,300 each
10/3/07 AFI's 40th Anniversary Celebration -- cost unknown
11/18/07 American Music Awards -- cost unknown
11/20/07 Mary J. Blige Concert Nokia Theatre -- up to $95
3/29/08 LA Dodgers Game Dodgers Stadium -- up to $500
3/31/08 Dodger's Opening Day Dodgers Stadium -- up to $500
10/13/08 LA Dodgers Game Dodgers Stadium -- playoff prices N/A
10/15/08 LA Dodgers Game Dodgers Stadium -- playoff prices N/A
3/28/08 Lakers vs. Grizzlies Staples Center -- up to $2,300 (floor seats)
4/11/08 Lakers vs. New Orleans Staples -- up to $2,000 (floor seats)
5/23/08 Lakers vs. Spurs Center -- up to $3,400 (for courtside)
1/27/08 14th Annual SAG Awards -- cost unknown
2/10/08 50th Annual Grammy Awards -- cost unknown
2/15/08 Gloria Trevi Concert Gibson Amphitheatre -- up to $94.75
2/24/08 80th Annual Academy Awards -- $4,200 per seat (may have taken multiple tix)
4/18/08 Placido Domingo's 40th Anniversary at LA Opera -- up to $1,750
5/10/08 Juanes Concert Nokia Theatre -- $125
6/24/08 BET Awards Show -- cost unknown
7/16/08 ESPY Awards -- cost unknown
9/6/08 Frankie Beverly and Maze Concert -- cost unknown
9/6/08 LA Opera-Opening Weekend -- up to $250
9/11/08 Alejandro Fernandez Concert -- cost unknown
9/21/08 60th Primetime Emmy Awards -- (2) tix at $1,300 each
9/28/08 Luis Miguel Concert -- cost unknown
10/16/08 Tina Turner Concert -- cost unknown
11/16/08 Vicente Fernandez Concert Gibson Amphitheatre -- up to $200.50
4/13/09 Dodger's Opening Day Dodgers Stadium -- up to $500
6/28/09 LA Dodgers Game Dodgers Stadium -- up to $500
7/21/09 LA Dodgers Game Dodgers Stadium -- up to $500
10/7/09 LA Dodgers Game Dodgers Stadium -- playoff prices N/A
10/16/09 LA Dodgers Game Dodgers Stadium -- playoff prices N/A
3/16/09 Lakers vs. Minnesota Staples Center -- up to $260 (possible suite)
3/17/09 Lakers vs. 76ers Staples Center -- up to $2,500 (floor seats)
6/4/09 Lakers v. Orlando Playoffs Staples Center -- up to $4,200 (courtside)
6/7/09 Lakers v. Orlando Playoffs Staples Center -- up to $4,200 (courtside )
10/27/09 Lakers v. Clipper(opening night) Staples Center -- more than $2,500 (floor)
1/11/09 60th Annual Golden Globe Awards -- cost unknown
2/8/09 51st Annual Grammy Awards -- cost unknown
2/22/09 81st Annual Academy Awards -- $4,200 per seat
5/20/09 American Idol Finale -- cost unknown
7/13/09 Beyonce Concert Staples Center -- up to $200
9/12/09 Alejandro Fernandez -- cost unknown
9/20/09 61st Primetime Emmy Awards -- (2) tix $1,300 each
10/8/09 LA Philharmonic-Opening night Walt Disney Hall -- cost unknown, scalper tix up to $15,000
10/25/09 U-2 Concert Rose Bowl ***Mayor paid for this one event
4/13/10 Dodger's Opening Day Dodgers Stadium -- up to $500
5/2/10 Lakers vs. Utah Staples Center -- up to $4,100 (courtside)
1/17/10 67th Annual Golden Globe Awards -- cost unknown
1/30/10 Director's Guild of America 62nd Dinner -- mayor scheduled, but didn't attend
1/31/10 52nd Annual Grammy Awards Staples Center -- cost unknown
3/7/10 82nd Academy Awards Kodak -- $4,200 per seat
5/26/10 American Idol Finale Nokia -- not avail to public, scalper tix $5,000

Obviously an investigation is required to determine if any tickets were provided by firms doing business with the city, especially given the city is on the verge of bankruptcy because of out-of-control spending by the mayor.

Los Angeles Hires 'Economy Chief'

Facing a widening budget deficit and regional unemployment stuck above 12%, Mayor Antonio Villaraigosa has decided to place a vast swath of city government under a former private-sector executive charged with making Los Angeles more business friendly, reports WSJ.

The only problem with this is that instead of hiring an economist that understands how markets work, and who might provide valuable advice, Villaraigosa has hired a member of the crony elite.
Villaraigosa is expected to name Austin Beutner, a former partner at private-equity giant Blackstone Group and co-founder of the boutique investment-banking firm Evercore Partners, as the city's first economy chief.

Reports WSJ:

The 49-year-old Mr. Beutner will have broad powers. About half of city government departments -- from the Port of Los Angeles to the city's sprawling Department of Water and Power utility -- will report to him. Mr. Beutner will report directly to Mr. Villaraigosa....Mr. Beutner, whose title is first deputy mayor and chief executive for economic and business policy, starts Monday. His annual salary is $1.

Villaraigosa has always been clueless about economics, now he has turned the city over to the ruling elite. They'll have Villaraigosa dancing in so many directions that he might as well become a contestant on Dancing with the Stars.

The Obama Press Conference: John Maynard Keynes and the Oligarchs Are Alive and Well

John Maynard Keynes and Oligarchs appear to be alive, well and ready for the Obama Administration.

In Barack Obama's first press conference, since winning the presidential election, Obama sounded like a typical big spending Democrat. In opening remarks, he called for a "rescue package" for the middle class, unemployment extensions and other fiscal stimulus. He also said that something had to be done for the automobile industry since it is "the backbone of the country." Somewhere, John Maynard Keynes and Marx are blushing.

Obama did not address how any of these proposals would be paid for.

I took special note of some of the members of his "economic transition advisory team", most of whom stood behind him as he promised to do vasts sums more spending than Imelda Marcos ever did during a good shoe shopping trip to New York City. It was a politically correct mixed crowd that included many women, a Latino and even another African-American, interspersed with oligarchs. Just what you need to fight a downturn in the economy, a politically correct group and oligarchs.

The oligarchs we were told included Warren Buffett (who, golly shucks, usually just represents himself) and Robert Rubin (former Goldman Sachs CEO, now running the Rubin/Citigroup wing of Goldman),but both failed to appear in chorus line fashion behind Obama for the press conference, as did the politically correct and other oligarchs and oligarch representatives.

At the press conference chorus line, the towering Paul Volcker was there, who has been a career long Rockefeller operative. The tiny Robert Reich was there, who was most likely invited as a reward for his regular bashing, on his blog, of Hillary, during the primaries.

An oligarch stepped a bit out of the shadows for the chorus line, Chicago-based Penny Pritzker, who was an early Obama backer, was there. Pritzker served as Obama's National Finance Chair. She and her husband hosted a $28,500 per plate fundraiser for Obama's campaign in Chicago with Warren Buffett and his wife, and Obama advisor Valerie Jarrett. She is also a member of the Council on Foreign Relations. She is 135th richest person on the Forbes 400 list of "America's wealthiest," with an estimated net worth of $2.8 billion US. If one was forced to come up with one name that Obama answers to, Penny Pritzker would not be a bad choice. They are on each others cell phone speed dials, guaranteed.

The Chicago Political Machine was well represented by Mayor Richard Daley's brother William, who also is a member of the executive committee at JP Morgan Chase.

Google's Chairman Eric Schmidt was part of the chorus line.

Much to my surprise, Los Angeles Mayor Antonio Villaraigosa was the token Latino. Readers will recall I had a Q & non-A encounter with the mayor, only a few weeks back.

In short, no one in this group strikes me as the type that understands Say's Law, never mind the business cycle. They all are very good, though, at protecting the very powerful interests that they are aligned with, nothing else. The oligarchs are sleeping very well tonight.

Keep This News Away From LA Mayor Antonio Villaraigosa

The Los Angeles Water Fuhrer, Mayor Antonio Villaraigosa, who has an army of 16 drought busters harassing the citizens of the City of Angels, obviously isn't aware of the truly nutty harassment techniques of the government of Salt Lake City. It's right up Villaraigosa's ally. He'd steal this idea in a minute, if he was aware. Salt Lake has undertaken the prosecution of persons who recycle the rain water that falls on their lands. Those who collect such water for use on their gardens, or for household purposes, etc., may be visited by the rainwater police.

via Bruce Shaffer

How to Irritate the Mayor of Los Angeles...

...Ask him about basic economics.

I'm still in Los Angeles. After a morning meeting at the Omni Hotel, I headed out to grab a burger at Casey's Bar and Grille on Grand Street. As I walked through the California Plaza area, I noticed a half dozen or so cameras setting up. I asked one of the cameramen what was going on. "The mayor is going to give a press conference in just a few minutes about the water shortage and new laws that are going into effect because of it." "Jeez," I think to myself, "doesn't the mayor know that a shortage is just a case of mis-pricing in the market and that a free market price will end the shortage?"

Then, I say to myself, "I think I'll ask him."

So I wander closer to where the cameras are being set up and notice an area that appears to be where the reporters are gathering. I notice a woman handing out some type of papers to the reporters. I look at a building-type badge dangling from her belt that says in large bold letters, MAYOR. Since I hadn't read any news in the papers of Los Angeles Mayor Antonio Villaraigosa having any recent sex change operations, I quickly surmised that the woman was one of the mayor's aides.

Since I had now decided I was covering the Mayor's press conference for EPJ, I felt I needed one of whatever the aide was handing out to the other reporters. I approached the woman and said, "Can I have one of those?" She looked at me and for obvious reasons didn't recognize me as one of the regular beat reporters. She said, "Who are are you? Are you with the media?" I said yes and handed her one of my EPJ business cards. She looks and says, "Oh, OK." and hands me the papers. I considered this an official approval from the Mayor's office to ask questions at the event.

The papers listed all the new regulations that will take affect when the mayor signs the new water legislation.

It includes:

The ban on the use of water on hard surfaces, such as sidewalks (except for water brooms)

The ban on the serving of water to customers in eating establishments, unless water is requested.

A limit on outdoor watering to 15 minutes per water station.

The ban on washing cars without shut off mechanisms on the hose.

The banning on watering of large landscape areas that do not have rain sensors.

The requirement that hotels and motels inform guests of the option to reuse towels (yuck).

The allowance of an exemption for using gray water (double yuck).

So the Mayor arrives and gives a brief speech, blah, blah. It turns out that Los Angeles, the mayor informs us, will have an army of drought busters. 16 strong. The drought busters will patrol LA, to insure that no one, for example, waters their lawn for 18 minutes instead of 15. A series of warnings and fines have been designed for the drought busters to issue to uncooperative citizens.

Then someone from the Department of Water and Power spoke, more blah, blah.

Then question time. Two questions were asked and then it was my turn. I manged to work my way directly in front of the mayor and ask my question eyeball to eyeball:

Economics 101 teaches that a shortage is only caused by incorrect pricing of product. Why don't you just let supply and demand set the price for water and eliminate the shortage and eliminate the need for an expansion of the bureaucracy?

And I waved my hand toward the drought busters. The mayor's response?

A total 100% diss. He turned completely away from me and said, "Next question."

No, "That will take too long to answer at this conference."

Just a brutal, cold, turn and "Next question."

More questions were asked, and in one answer the mayor said, we are going to teach the kids in school about conservation." My knee jerk free market economic instincts took over. OMG, the kids, the kids! They are going to teach the kids commie anti-free market distribution methods. The mayor took half a breath, just enough for me to shout out another question: "Do you teach basic economics in your schools?"

Of course, the mayor ignored the question.

Who ever thought that asking a Mayor a simple question about basic supply and demand would irritate a mayor, and cause him to diss the questioner.

Well, Mr Mayor, the great media outlet EPJ will not take being dissed, lightly.

I have held a corporate wide meeting with myself and reached the conclusion that we will now monitor for EPJ the complete mayoral policies of one, Mayor Antonio Villaraigosa, specifically with regard to economic policies and economic knowledge. It will be thorough, on going and deep. Further, I am pulling all copyright restrictions at EPJ on all posts that reference Antonio Villaraigosa. Anyone doing opposition research in any future election race against Villaraigosa is free to use any knowledge, information or dirt we uncover about him. Let's nail this clown.