Jose Ugarte to Pay $17,500 Fine for Ethics Violation in L.A.
Jose Ugarte, a candidate for the Los Angeles City Council, faces a significant ethics violation fine of $17,500 due to undisclosed income from his lobbying and consulting firm. The Los Angeles Ethics Commission revealed that Ugarte, who served as a deputy chief of staff to outgoing Council member Curren Price, failed to report earnings from his firm, Ugarte & Associates, for the years 2021, 2022, and 2023. The situation comes at a critical time as Ugarte campaigns for a position representing Council District 9, which covers parts of South Los Angeles.
The commission’s findings indicate that Ugarte did not disclose outside income derived from his firm while employed in Price’s office. Ugarte has stated that these omissions were unintentional and described them as “clerical reporting errors.” In a statement, he expressed his commitment to transparency, saying, “As soon as I was made aware, I took full responsibility and corrected them.” The proposed settlement is scheduled to be reviewed by the Ethics Commission on March 6, 2024.
Ugarte began working for Price in 2013 and left in 2019, returning in 2021. His consulting firm was founded in 2018 and is co-owned with his sister. Despite the violation, Price expressed his support for Ugarte, emphasizing that the matter pertains to a time when Ugarte was not employed by the city, underscoring its clerical nature. “I wholeheartedly support Jose Ugarte, alongside an unprecedented coalition of elected officials, labor groups, and community leaders who stand behind his character,” Price stated.
The ethics investigation has raised questions about Ugarte’s financial dealings. Opponent Estuardo Mazariegos described the commission’s findings as “very disturbing,” challenging Ugarte’s transparency. Mazariegos questioned whether there were additional undisclosed payments and how Ugarte’s consulting work might have influenced his responsibilities as a city employee.
The commission’s documents also highlighted that Ugarte’s financial disclosures, known as Form 700s, inadequately reported clients who contributed $10,000 or more to his firm. Among these clients were independent expenditure groups supporting local candidates. Ugarte & Associates reportedly received $128,050 for assistance with the reelection campaign of Congressman Jimmy Gomez and $222,000 from Elect California for the campaign of Mitch O’Farrell.
As Ugarte continues his campaign, he has demonstrated an ability to raise substantial funds, reporting $211,206 in the first fundraising cycle. Despite the ethics violation, his financial backing positions him as a leading candidate for the Council District 9 seat.
The unfolding situation reflects broader issues in local governance and the importance of ethical compliance among public officials. As the election approaches, how Ugarte navigates this challenge may significantly impact his candidacy and the trust of potential voters.
