RESERVE OFFICER PREVAILS
Mike Madigan
Gardens Police Chief Fred Freeman. The following excerpt from The Twisted
Badge is posted here with the permission of the publisher, Integrity
Publications.
THE TWISTED BADGE
An inside look at
politics in law enforcement
by
Mike Madigan
3rd Edition
INTEGRITY PUBLICATIONS
Copyright 1999
Published by:
Integrity Publications
23361 El Toro Road
Suite 106
Lake Forest, Ca. 92630
(949) 380-0205
All rights reserved. Printed in the United States of America.
No part of this publication may be reproduced or transmitted in any form or
by any means, electronic or mechanical, including photocopy, recording or
any information storage and retrieval system now known or to be invented,
without permission in writing from the publisher, except by a reviewer who
wishes to quote brief passages in connection with a review written for
inclusion in a magazine, newspaper, website or broadcast.
Cover art by: Point Savannah, Graphic Design
Library of Congress Catalog Card
Number: 99-091142
ISBN: 0-924309-01-6
1st printing January 1989
2nd printing August 1989
3rd printing September 1990
4th printing February 1993
5th printing September 1995
Copyright 1999 by Integrity Publications
Dedication
This book is dedicated to those criminal justice
professionals who bring honor to the badge.
Thank you.
Chapter 6
The Reserve Officer
Chuck Carter is a friendly guy with an infectious laugh who manages to fit
in wherever he happens to be. A successful businessman, for 22 years he
worked without pay for the Orange County Sheriff's Department and several
police departments. His work with Anaheim Vice was instrumental in helping
them shut down the largest bookmaking operation in Orange County history.
In 1994, Captain Andy Romero of the Orange County Sheriff's Department was
hired as the Chief of Police in Bell Gardens. Located in Southern Los
Angeles County, Bell Gardens is a predominantly Hispanic community where
blue collar workers live and raise their families. It is also the home of
The Bicycle Club, an extremely successful casino which offers Asian
gambling.
Soon after he took over, Chief Romero received reports of drug dealing and
corruption at the casino. Remembering the good work Chuck Carter had done
in the past, Chief Romero asked him to come to work at Bell Gardens. Neither
man had any idea what they were getting themselves into.
Welcome to Uncle Sam's Casino
In 1981, businessman George Hardie approached the City of Bell Gardens with
plans to build a card club. He formed Park Place Associates, Ltd. with 35
investors and in 1984 made a deal with builder Sam Gilbert. In exchange for
a 65% interest, Gilbert agreed to build the club and formed CGL Corporation
with his son, Michael.
After the Bicycle Club had been built, Gilbert and his associates, Barry
Kramer and Jerome Kramer, were indicted for smuggling $500,000. worth of
marijuana and laundering $11 million through CGL Corporation.
A minority share of the casino was seized under the Asset Forfeiture
Program following an investigation and prosecution by the US Attorney in
Florida. The United States Marshall's Office in Los Angeles was charged with
overseeing the 30% interest owned by the government.
The Trustee in charge of collecting this money was reportedly paid $30,000
per month, so needless to say, business was good.
United States Senate - Washington D.C. - March 1996
Chuck Carter didn't know that the Bicycle Club had been the subject of an
extensive investigation by the United States Senate Sub Committee charged
with overseeing the Asset Forfeiture Program. At a hearing in March of 1996,
former Director of Security at the Bicycle Club, Douglas Sparkes, described
the Bicycle Club as the "Macau of the West" and testified about money
laundering, tip skimming and narcotics trafficking. Carter also didn't know
that Sparkes sued Freeman for forcibly removing him from his position and
ending his career.
In 1992, business was booming at The Bicycle Club. With 1800 employees, the
casino accounted for about 80% of the revenue of Bell Gardens. Doug Sparkes,
son of the former police chief of Buena Park, California, had spent his
entire life enforcing the law. Retired after 20 years with the Los Angeles
Sheriff's Department, he was working as a private investigator when he
served a subpoena for records on the Bicycle Club. Then-manager John Sutton
mentioned they were looking for a Director of their 80 man security
department. Sparkes left his card and a few days later he got a call to
meet with George Hardie, who hired him on the spot.
Working with Police Chief Andy Romero, Sparkes cooperated with state and
federal law enforcement on a regular basis. His main contact was the Office
of California Attorney General Dan Lundgren.
In 1996, Lundgren reported to Washington that extensive evidence of
organized criminal activity had been uncovered at the Bicycle Club/. In
February 1996 Sparkes was subpoenaed to testify before the Senate Sub
Committee which oversees the Asset Forfeiture Program. This hearing was
opened with a statement by the committee Chairman, Senator Roth:
"This is a sad story in our long history of uncovering waste
fraud and mismanagement in government programs. The Sub Committee has
discovered that as incredible as it sounds, the United States Marshall
Service is running a gambling casino and has been doing so for nearly six
years. However, this is not just any gambling casino. The Marshals run the
infamous Bicycle Club Casino in Bell Gardens, California. The Bicycle Club
is no stranger to this Sub Committee. During hearings the Sub Committee held
in 1991 on Asian organized crime, law enforcement officials testified that
the Bicycle Club was suspected of being a money laundering center and that
the casino's Asian games manager was suspected of hiring gang members to
work there. The Marshals ran the casino even then. Today, we will focus on
this particular situation as a case study of the problems plaguing the Asset
Forfeiture Program."
END OF EXCERPT
When called to testify, Sparkes provided the committee with an overview of
the problems he faced at the Bicycle Club:
"I have been the Director of Security at the Bicycle Club
Casino since June 1992, when I was hired by George Hardie, then General
Manager of the club. As the Director of Security for the club, my duties
include maintaining proper staff, designing and recommending procedures for
greater protection of the club, employees and company assets. I am also
responsible for being the liaison with all law enforcement and governmental
agencies and security related associations.
From the standpoint of law enforcement, the club is seen as a
place where crime is permitted and condoned. The club has a worldwide
reputation as the Macau of the West, where it is understood that the
management will tolerate almost anything as long as the management profits
from the activity and will continue to profit from the activity."
END OF EXCERPT
While all of this was going on, Andy Romero left Bell Gardens and is now
the Chief of Police in the city of Orange. He was replaced by Sergeant Fred
Freeman.
Shortly after Sparkes returned to California, Chief Freeman wrote a letter
instructing him to "cease and desist" all investigations. When Sparkes
contacted the Attorney General's Office, they said Freeman had no right to
tell him what to do. A few weeks later Sparkes was escorted off the casino
property by three Bell Gardens police officers in RAID jackets. After he was
out, they seized his personal papers, tax information, notebooks, computer
files and portions of a book he was writing. All this was done without a
search warrant.
A few days later, Attorney General Lundgren overrode the Bell Gardens
Police Department and suspended the licenses of all the people Sparkes had
been investigating. Chief Freeman retaliated by suspending Sparkes' work
permit and refusing to hold a hearing within seven days as required.
Sparkes has filed a lawsuit against Chief Freeman and the City of Bell
Gardens in LA Federal Court which is pending at the present time.
Background
In 1994, Chief Romero wanted Carter to "fit in" at the Bicycle Club by
playing the part of a high roller. Pursuant to policy, a background
investigation was conducted by then- Sergeant Fred Freeman. Carter was hired
by the City of Bell Gardens as a reserve officer and immediately began his
undercover work.
In no time at all, Chuck Carter became a familiar face at the Bicycle Club.
Using a car leased for him by the police department, he met dealers,
doormen, cashiers, pit bosses and "runners", all the while gathering
information and filing reports. Not an experienced gambler, he made his
usual bankroll of $500. last as long as possible as he gathered information
about private dinners and parties given at little or no charge for city
council members. Soon he was learning about large amounts of cash being
laundered through the casino by convicted felons.
After Carter reported drug dealing and organized criminal activity, Chief
Romero invited other agencies to participate. The Los Angeles Sheriff's
Department assigned their highly specialized organized crime detail to work
with Carter and things began to get serious. With the larger and well
financed Sheriff's unit involved, plans came together for joint
contributions of time and resources.
Plans were made and money was spent to organize a cooperative effort.
Before long Carter was invited to launder money through the casino.
Preparations were under way, but Chief Romero left the department and
Freeman had not yet been briefed on the operation.
Sharon Leslie, former secretary to Chief Freeman, testified that shortly
after he learned Chuck Carter was working undercover at the casino, she
overheard Chief Freeman on the phone talking to a city council member about
it. Afraid for Chuck's safety, she called Carter on his cell phone to tell
him what she'd just heard Freeman do. A politician now knew Chuck was in the
casino. His cover was blown. As of that moment, the operation was over.
The Anaheim Police Department wanted Chuck Carter to return to work with
them, but during their background search, Chief Freeman falsely told them
Carter had ties to organized crime. Where Freeman obtained this information
is a mystery, especially since he had conducted the background check when
Carter was hired by Bell Gardens.
Anaheim PD then contacted Los Alamitos Police Chief Mike Skogh, who said
Carter did not have a clear record. None of Carter's former supervisors at
Los Alamitos PD knew anything about the Skogh statement and have signed
sworn declarations. Stating that Carter was an excellent officer. Shogh and
Freeman presented no evidence to back up these allegations, but that didn't
seem to matter.
Even with a letter of commendation from the Anaheim Chief of Police, the
late Randy Gaston, Carter could not be hired by Anaheim PD.
Chuck Carter's dream of working as a security consultant in his retirement
had been undermined by two men he hardly even knew. His many friends and
associates in law enforcement felt Freeman and Skogh should be required to
prove their allegations.
Carter hired attorney Bradley Gage to file a lawsuit which provides a
unique look inside an undercover operation gone wrong.
Accountability Time
Woodland Hills Attorney Bradley Gage, a partner in the law firm of Goldberg
& Gage, has filed 18 lawsuits against Chief Freeman and the City of Bell
Gardens since September of 1997. In a recent interview, Gage provided an
overview:
"Chief Fred Freeman's conduct has resulted in more than $1
million in legal fees to the taxpayers of Bell Gardens. My objective in
this lawsuit is to clear Chuck Carter's name, allow him to return to work in
law enforcement and to compensate him for emotional and financial losses
caused by Freeman's conduct."
According to the Los Angeles Daily Journal, three of Mr. Gage's clients
have already settled their cases for several hundred thousand dollars plus
lifetime pension benefits estimated to be worth more than $1 million..
Gage has strong personal feelings about the situation in Bell Gardens:
"Goldberg & Gage has been involved in the representation of
police officers for more than 12 years and we have never seen a case in
which so many police officers in one department make such serious
allegations of misconduct against their chief. Police chiefs are vested
with the public trust and we expect them to uphold the law and treat people
fairly."
"Chief Freeman is accused of racism, discrimination and
retaliation against police officers who insist that he uphold the law."
Gage's home and office have been broken into and in the same two week
period, the cars of two of his police officer clients have been vandalized.
Police reports were filed, but no suspects have been identified. Two other
police officer clients were followed after being interviewed by a Fox TV
News reporter. In his sworn deposition, Chief Freeman testified that he is
the only person authorized to order surveillance of Bell Gardens police
officers.
In August 1999, Carter noticed he was being followed on the freeway and
recognized the driver as Fred Freeman. The car was registered to the Bell
Gardens Police Department and had been assigned to Fred Freeman.
Shortly after Officer Richard Santoro stated in a televised interview that
Chief Freeman had made racist statements about Hispanics, he was told by
BGPD Commander Eli Magdaleno that he would not receive his retirement badge.
How About Lunch?
According to several BGPD officers, Chief Fred Freeman lived far beyond his
means. He filed a personal bankruptcy petition in July of 1994 and his debts
were discharged in December of that year, but in 1995 he had new debts.
Chief Freeman's former secretary, Sharon Leslie, testified that bill
collectors often called the police department seeking payments on delinquent
loans.
In October of 1998, I sent Freedom of Information letters to the City of
Bell Gardens and the City of Los Alamitos requesting photocopies of all
credit card purchases billed to these cities by their police departments.
Los Alamitos responded within a few days with a photocopy of a single
purchase of radio equipment made by Chief Skogh. The response from Bell
Gardens was another story. After three weeks, I drove to Bell Gardens City
Hall and spoke with a clerk, who knew about the request before I'd even
finished introducing myself. She said my letter had been given to Anil
Gandhy, the Finance Director, and he would be handling the matter. He was
not available at that time.
After two more weeks, I returned to Bell Gardens City Hall to speak with
Mr. Gandhy and again he was unavailable. The same clerk said the documents
had to be retrieved from storage. Two weeks later, I returned to Bell
Gardens City Hall and met Mr. Gandhy, who was standing with the clerk.
A clearly overworked but cordial Anil Gandhy escorted me to a conference
room. He told me he had the records, but needed clearance from the City
Manager to release them. He wanted to know why I needed the copies and I
smiled a lot , but told him nothing. When he expressed surprise that I was
so persistent, I assured him I'd be back until the records were ready to be
picked up.
He didn't call, so the next week I returned with translator Dan McIntosh, a
bilingual private investigator based in Ensenada, Mexico. We walked directly
into Anil Gandhy's private office and he became extremely nervous. He showed
us the documents he was waiting for permission to release and asked if he
could Fed-Ex them. I said I'd prefer to pick them up. Again he said he'd
call. Once more he didn't call.
A few days later, McIntosh and I returned to see Gandhy and it was clear
that he was at the end of his rope. He looked like an invisible vice was
squeezing his head. His eyes screamed "Please leave me alone!" as he handed
me an inch thick pile of photocopies. Page after page of charges. No meeting
topics, no names. When I asked several officers if they'd ever been to a
staff meeting at a restaurant, they laughed.
Credit card statements in hand, I met with Sharon Leslie. She'd worked for
Chief Freeman only a short time when allegations of racism were filed
against Freeman by several minority officers. Shortly after she signed a
declaration in support of one of these officers, she was transferred to a
basement office in the gaming department. She hired attorney Bradley Gage,
who sued the city. After her deposition was taken, they settled the case
quickly.
Several officers I interviewed complained loud and long about problems in
the department. Many have lawsuits pending that paint an ugly picture. Did
they know that Chuck Carter was working undercover ? No. Did they want to
know? No. They just wanted to do their jobs and not have to worry about
being transferred or fired by Chief Freeman.
Sharon Leslie had first hand knowledge of what happened at the Bell Gardens
Police Department. She reviewed the credit card statements and recalled
that Chief Freeman would look for someone to take to lunch so he could use
the city credit card and say it was business. "Usually it was Greg Shepherd,
his assistant, because no one else was around.", she recalled.
She recalled that every time Chief Freeman went on a trip, he requested
per diem expense money before he left, then charged everything on his credit
card, which was paid by the city. Why bother to pad your expense account if
you can get paid twice?
According to Sharon Leslie, Chief Freeman had used the credit card once to
go shopping at Nordstrom's, but reimbursed the city when the bill came in.
The December 1996 credit card statement had not been provided and Sharon
Leslie gave her opinion as to the reason:
"He went to Nordstrom's in December 1996 and bought a $500. gift
certificate using his city credit card. He only shops at Nordstrom's. I
think he went Christmas shopping using the gift certificate so the city
wouldn't know what he'd bought.
When the bill came in he refused to give it to me. He made a couple of
small payments on it, but then I was transferred, so I don't know when or
if he paid it."
On January 14, 1999, the deposition of Sharon Leslie was taken and she was
questioned about one of the other lawsuits pending against Chief Freeman:
Q: "What city policies did he (Freeman) change for himself?
A: Expense reports. He was the only department manager that didn't have to
fill out an expense report. It was city policy that whenever they went
anywhere they had to turn in a complete listing of their expenses, which he
did not do.
Q: So then how would he get reimbursed if he didn't turn in a list, did he
just give a total?
A: No, he would ask for money up front and have me prepare paperwork up
front. Plus he had a city credit card. And he took the up front money and he
charged things on the credit card and he never accounted for anything.
Q: Do you know if he - other than the fact that he didn't account for
anything - ever used the funds or charges improperly?
A: Yes.
Q: Okay, what instances?
A: There were numerous instances.
MR. GAGE: Can you give him some examples? I think that's what he's looking
for.
A: He would have me do demands for payment for his subsistence pay. If he
was traveling where he would receive an amount of money per day for food.
Q: Right. It is per diem.
A: And he would have me make it out for five, six days, however long he was
supposed to be gone. And he would go for two days and he wouldn't return any
money to the city. He wouldn't account for it in any way. Or he would take
that money and he would go to the conference and he would charge all his
meals on the credit card and then the city would pay all the charges for the
credit card. And he would not return the per diem money that he received.
Q: Do you have any records of this?
A: No, not personally.
Q: Do you know anyone who does?
A: I'm sure the city has credit card bills. Payments. They should. And when
I would try to fill out an expense report— the first couple times that he
did this I generated an expense report and he refused to sign it. And I told
him that he had to sign one. And he went to City Hall and came back and said
that the finance department told him that he did not have to do that.
MR. GAGE: That's something that all prior chiefs had done?
A: Yes.
Q: Okay. Any other instances where you recall this occurring?
A: He would use his city credit card for personal items.
Q: Like what?
A: The City Manager took away the city credit cards from all the department
heads, but he got to keep his in order to hold hotel reservations for when
he had to travel. But he was not to use it.
Q: Okay.
A: However, there was a personal charge on it to Nordstrom's for $500 that
was not authorized by the city. And that when I received the bill I made out
the demand for payment and he would not sign it and about another bill came
in that was still on there. And probably the third bill that came in showed
a small payment of maybe $20. And it was the city's policy to pay the bill
in full every month. So I could only assume that he started to pay it
himself.
Q: Okay. Any other instances?
A: When he was an Acting Chief he did not have— he and his wife only had
one car between them. And so he contacted a rental car agency through our
car repair place, which was Downey Ford. Contacted Enterprise Rentals, got a
rental car for— well, he told them it was for the police department so he
would get a good rate. And he used this car for his personal use and then he
refused to pay the bill for months and months and months. And because he
said it was for the police department — Enterprise Rental Car was
continually hounding me to pay for his rental car.
Q: Okay. Any other instances?
A: And he finally got a city car when he became Chief and he had a CD
player put in it, which was unauthorized. And when Downey Ford billed us for
the CD player, it was an amount of money that would have required a purchase
order. So he had Linda Chavez call Downey Ford and ask them to break it down
into two amounts so that it could go by without a purchase order, and they
did that. And we kept preparing the bill to be paid, but he wouldn't send it
over. And Downey Ford gave us another invoice and it said CD player on it
and he made us contact Downey Ford to change it to electronic equipment.
And that bill was outstanding for over a year because he would not put it
through because he was never authorized to get that CD player. And I don't
know if it ever got paid or not.
Q: Any other instances that you recall?
A: I know that he would use the city credit card at lunch time to purchase
lunch and alcohol. The city had a policy for not purchasing alcohol. He
would put it on the city credit card.
MR. GAGE: While he was on duty?
A: Yes, while he was on duty.
Q: And this is because you saw the bill, or how do you know?
A: I had been to lunch with him and the lieutenants and Linda Chavez on two
different occasions and they all ordered drinks and basically they all—Linda
and I did not drink and they all harassed us for not drinking.
Q: Who was present?
A: Chief, Shepherd, Reuter and I don't know if Magdaleno was present or
not. I don't recall. He probably was.
Q: Okay. Any other instances?
A.: I know that he would use his city credit card for lunches on a real
regular basis. He would try to find somebody at
lunch time to go to lunch with so he could write it as a lunch meeting.
And I mean he would make a lot of attempts. It wasn't like it was a
scheduled meeting. He would make attempts to use it."
END OF EXCERPT
The deposition of Chief Freeman was started, postponed, then rescheduled
several times. At one videotaped session, Chief Freeman left abruptly,
stating that he was ill because looking at attorney Gage made him sick.
The taxpayers of Bell Gardens may have a similar feeling when they get the
bill from his lawyers.
In August 1999 I visited with a very relaxed and cordial Anil Gandhy, who
had been named Acting City Manager. He said The Bicycle Club had recently
been sold and the contract of Chief Freeman had not been renewed.
Unfortunately, the city's problems are not over. In addition to the cost of
the police department litigation, Bell Gardens will also have to deal with a
claim for workers' compensation benefits filed by former Chief Freeman
citing work related stress.
The City of Los Alamitos and Police Chief Michael Skogh have made an
offered to settle the case against them. The case of Carter vs. Fred Freeman
and the City of Bell Gardens is expected to go to trial in late 1999 or
early 2000.