FBI serves search warrants in Los Angeles related to utilities billing
Federal Bureau of Investigation (FBI) agents served search warrants at multiple Los Angeles government offices on July 22 in relation to a 2013 utilities billing incident.
The search warrants were served at the Los Angeles city hall, the Los Angeles Department of Water and Power headquarters and two other locations, according to the Los Angeles Times.
No arrests are planned, according to Los Angeles TV station ABC 7.
“The warrants served on our staff relate to issues that have arisen over the class action litigation and settlement surrounding the DWP billing system, and the City’s lawsuit against PwC (PricewaterhouseCoopers),” Rob Wilcox, a spokesman for Los Angeles City Attorney Mike Feuer said in a statement. “We have and will continue to cooperate fully with the expectation that the investigation will be completed expeditiously.”
The settlement relates to a 2013 incident in which DWP’s then-new billing system sent out inaccurate bills that overcharged hundreds of thousands of customers, according to the Times. After a resident filed a class action lawsuit against the city in 2015, DWP ultimately fixed the issues and reimbursed customers $67 million in overcharges.
In 2015, the city also sued PwC and accused the professional services firm of misrepresenting its ability to implement the billing system, the Times reports.
A day after the search warrants were served, Mayor Eric Garcetti fired DWP General Manager David Wright, LAist reports. DWP Chief Operating Officer Marty Adams was named as his interim replacement.