Top LAFD union officers suspended after audit flags $800K credit card purchases

The president and two other top Los Angeles Fire Department's labor union officers were suspended following an investigation that uncovered approximately $800,000 in credit card purchases lacking proper documentation.

The International Association of Fire Fighters, which oversees the United Firefighters of L.A. City and other local firefighter unions nationwide, took the extraordinary step after discovering what it described as "serious problems" with missing receipts.

IAFF General President Edward Kelly announced the suspension of UFLAC President Freddy Escobar and two other officers in a letter to union members. The parent organization appointed John Bagala, a state representative for the IAFF and president of Marin Professional Firefighters, to serve as conservator and "restore responsible financial stewardship" to the local union.

"The leadership of UFLAC has abdicated its fiduciary responsibilities and placed Local 112 in ill repute. The financial malpractice by the leadership of UFLAC has dealt serious harm to the membership," Kelly wrote in his letter to members.

The suspensions resulted from a comprehensive audit of UFLAC's finances that revealed numerous financial improprieties. According to the investigation, from July 2018 through November 2024, Escobar initiated 1,957 transactions on his union credit card totaling $311,498. More than 70% of those transactions, amounting to $230,466, had no supporting documentation.

"The auditors could not ascertain the purpose of these transactions," Kelly stated in the letter. An additional 157 transactions totaling $35,397 were only partially supported by required documentation.

"This means there is no way to determine whether $265,862.34 in dues money spent by President Escobar without documentation was for legitimate union expenditures," the letter continued.

Escobar denied the allegations in a statement posted on Instagram. "These false allegations are disgusting and politically motivated by those who want to attack the union and me personally and I am going to clear my name," he wrote. "Ask yourself why do they want to silence me?"

The audit also found two other officers – former Secretary Adam Walker and former Treasurer Domingo Albarran Jr. – had more than $530,000 in credit card transactions without receipts or partial documentation.

Vice Presidents Chuong Ho and Doug Coates were also suspended and accused of breaching their fiduciary duties by "failing to enforce UFLAC policy." 

"Protecting the dues money that members contribute to their Local union is one of the highest priorities for all Local union officers," Kelly wrote. "In fact, Local union officers have a legal responsibility, called a fiduciary duty, to ensure that your dues are spent in your best interests and in a manner you can track."

The investigation began in October when UFLAC's new treasurer, Jason Powell, alerted the IAFF about alleged improper recordkeeping and use of union funds. "It is just unfortunate but we will get through these difficult times," Powell said. "This does not represent the people that are part of this great organization. Challenges like this will make us better in the future."

Prior to this investigation, different auditors for UFLAC had already identified accounting problems. In March 2024, auditors highlighted "significant deficiencies" in the union's financial practices because officers were failing to document their expenditures properly.

Despite the warning, according to Kelly's letter, Escobar made 339 transactions in 2024 using his UFLAC credit card totaling $71,671 without submitting a single receipt. "Furthermore, the UFLAC Executive Board failed to compel President Escobar to comply with UFLAC Policy, legal requirements, or the auditors' demands, or take action against him when he failed to comply," Kelly wrote.

The conservator, Bagala, will work with IAFF General Secretary-Treasurer Frank Líma and the remaining UFLAC board members to manage the union, properly handle its finances, and implement safeguards for the spending of union dues.

The IAFF investigation also examined allegations against former Secretary Walker regarding improper handling of charity funds. Walker was previously suspended over allegations he improperly deposited $83,414 from the union's charity for injured firefighters into his personal accounts from October 2022 to September 2024.

Walker previously denied these allegations, telling news outlets the account he drew from was not for the charity, the UFLAC Fire Foundation, but was set up for two golf tournaments to raise money for a disabled former firefighter. He maintained all deposits were reimbursements for legitimate out-of-pocket tournament expenses.

However, the IAFF investigation found that immediately after moving large sums from the charity's account into his accounts, Walker paid his mortgage and recreational vehicle loan payments, and made cash automated teller machine withdrawals at casinos.

Last month, an investigation revealed Escobar and other top union officers had been supplementing their incomes with overtime for years while also collecting substantial union stipends. Escobar earned approximately $540,000 in 2022, the most recent year for which records of his city and union earnings are available.

According to payroll data, he more than doubled his base salary of $184,034 with overtime that year, earning more than $424,500 from the city in pay and benefits. Additionally, he collected a $115,962 stipend from the union, according to its most recent federal tax filing.

Escobar reported working 48 hours weekly on union and related duties, while city records for that year show he picked up an average of 30 hours of overtime weekly.

Kelly emphasized the primary goal is to ensure members' dues are properly managed and accounted for. The IAFF committed to implementing stronger financial controls and transparency measures to prevent similar issues in the future.