Claims that the top official of the Los Angeles Fire Department’s labor union neglected to accurately record hundreds of thousands of dollars in credit card transactions have been intensified by the union’s parent corporation.
Last month, President Freddy Escobar and two other union executives were suspended by the International Association of Fire Fighters, which is in charge of the United Firefighters of Los Angeles City, due to significant issues with missing receipts found in a comprehensive audit dating back to 2018.
After Escobar showed up at UFLAC headquarters last month with a thumb drive and stacks of photocopied receipts that he said would clear him, the auditors reexamined their conclusions.
California
Following the discovery of $800,000 in unaccounted-for credit card purchases during a comprehensive financial audit, labor union leaders for the Los Angeles Fire Department were suspended from their positions on Monday.
In a letter this week that The Times seen, the IAFF’s auditors came to the conclusion that Escobar had improperly documented over $212,000 in credit card charges, even with the additional materials. They said that Escobar worked feverishly to reconcile the transactions in recent months and that they were not given complete access to UFLAC’s internal expenditure system for their first report. According to the letter, Escobar instructed his employees via email to search for any missing receipts in the months following the auditors’ departure from UFLAC’s headquarters in December 2024.
In a statement to the local union’s members this week, IAFF General President Edward Kelly and General Secretary Treasurer Frank L. Ma stated that Escobar worked frantically to settle some of his previous credit card expenses with the help of UFLAC staff.
Only 889, or $100,824 worth, of the 1,974 Escobar credit card transactions that auditors recently examined—which totaled $312,985—were properly documented with receipts and a business purpose, according to the auditors’ letter.
Of such transactions, 1,957 totaling $311,498 were examined in the first audit; just 428, or $45,635, were found to be correctly documented.
The auditors stated in the letter that they still stand by the findings they presented in their audit report dated May 1, 2025. Due to a lack of receipts and documentation of business purpose, it appears that Escobar frequently disregarded his fiduciary duties and obligations, and appropriate controls were not in place to ensure compliance with state and federal laws and regulations as well as UFLAC policies regarding expense reimbursements and the expenditure of UFLAC funds.
Escobar and his lawyer did not immediately comment.
California
Four days after Freddy Escobar and two other individuals were suspended by the International Association of Fire Fighters for financial irregularities, including significant issues with missing receipts, a dramatic event took place outside the union’s office on Friday morning.
Additionally, the original audit discovered that two other UFLAC officials—former Treasurer Domingo Albarran Jr. and former Secretary Adam Walker—collectively conducted over $530,000 in credit card transactions without partial documentation or receipts.
The conclusions in the revised report were not reexamined by the auditors.
According to UFLAC policy, all credit card purchases must be accompanied by a receipt that details the spending, including the names of people involved and the business purpose.
Vice Presidents Doug Coates and Chuong Ho were both suspended and charged with violating their fiduciary duties by not enforcing UFLAC policy.
Following the audit, the IAFF designated John Bagala as a conservator to assume control of the union, restore competent financial management, and ensure that UFLAC’s justifiable goals were met.
In addition to serving as president of Marin Professional firemen, IAFF Local 1775, which represents firemen in Marin County, Bagala is an IAFF state representative.
The conservatorship is focused on putting measures in place to stop future financial malfeasance, according to a statement released Thursday by IAFF spokesperson Ryan Heffernan.
The IAFF is committed to provide for members’ urgent needs and safeguarding their hard-earned dues funds during this interim conservatorship, he said.
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