Los Angeles City Council Candidate Jose Ugarte Faces Rejected Settlement Over Undisclosed Income
Jose Ugarte, a deputy chief of staff to Los Angeles City Council member Curren Price and a candidate to replace him, has been embroiled in a controversy over his failure to disclose outside income from his consulting firm, Ugarte & Associates. According to documents from the Los Angeles Ethics Commission, Ugarte failed to report this income for the years 2021, 2022, and 2023. The commission has rejected a $17,500 settlement agreement with Ugarte, with two commissioners arguing that the fine was not sufficient.
The Ethics Commission’s president, Manjusha Kulkarni, stated that “we need to signal that this is a serious violation,” emphasizing the importance of transparency and accountability in public office. Ugarte attributed the failure to report the outside income to a “clerical reporting error.” However, the commission’s concerns go beyond a simple mistake, as Ugarte’s actions may have undermined the public’s trust in the city’s government.
Background and Context
Ugarte has been working for Curren Price since 2013, with a brief period away from the office from 2019 to 2021. During this time, he formed Ugarte & Associates, a consulting firm co-owned with his sister. The company has continued to operate, and Ugarte has maintained that his work with the firm did not overlap with his duties in Price’s office. Despite this, the Ethics Commission has raised concerns about the potential for conflicts of interest and the need for greater transparency.
The proposed settlement with Ugarte included seven counts against him, each carrying a potential $5,000 penalty. However, due to Ugarte’s cooperation, the commission’s director of enforcement reduced the overall penalty by 50%, resulting in the $17,500 figure. While two commissioners voted in favor of the settlement, Kulkarni and another commissioner, Terry Kaufmann, argued that the fine should be increased to around $20,000 to send a stronger message about the seriousness of the violation.
Implications and Concerns
The rejection of the settlement agreement highlights the importance of transparency and accountability in public office. As Kaufmann noted, Ugarte’s actions are particularly concerning given his continued work for a council member and his candidacy for office. The incident raises questions about the effectiveness of the city’s ethics laws and the need for stronger enforcement mechanisms to prevent similar violations in the future.
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