The parent organization of the Los Angeles Fire Department’s labor union has doubled down on allegations that the union’s top official failed to properly document hundreds of thousands of dollars in credit card transactions.
The International Assn. of Fire Fighters, which oversees the United Firefighters of Los Angeles City, suspended President Freddy Escobar and two other union officials last month over “serious problems” with missing receipts identified in a wide-ranging audit going back to 2018.
Auditors reexamined their findings after Escobar showed up to UFLAC headquarters last month — news cameras in tow — with a thumb drive and stacks of photocopied receipts that he claimed would clear him.
In a letter last week reviewed by The Times, the IAFF’s auditors concluded that even with the new materials, Escobar failed to properly document more than $212,000 worth of credit card expenses. They said they were not provided full access to UFLAC’s internal expense system for their first report and said Escobar engaged in a “flurry of activity” to reconcile the transactions in recent months. In the months after auditors left UFLAC’s offices in December 2024, Escobar directed his staff by email to look for missing receipts, according to the letter.
“Escobar — with the assistance of UFLAC staff — worked feverishly to reconcile some of his past credit card expenditures,” IAFF General President Edward Kelly and General Secretary Treasurer Frank Líma said in a note this week to the local union’s members.
Of the 1,974 Escobar credit card transactions auditors recently reviewed, totaling $312,985, only 889, or $100,824 worth, were fully documented with receipts and a business purpose, the auditors’ letter said.
The initial audit reviewed 1,957 of those transactions, which amounted to $311,498, and found that only 428, or $45,635, were properly documented.
“Our conclusions set forth in our May 1, 2025 audit report remain the same,” the auditors wrote in the letter. “It appears that Escobar repeatedly failed to comply with his fiduciary duties and obligations, and proper controls were not in place for compliance with state and federal laws and regulations and UFLAC policies on expense reimbursements and expenditure of UFLAC funds due to lack of receipts and documentation of business purpose.”
Neither Escobar nor his attorney immediately provided comment.
The initial audit had also found that two other UFLAC officials — former Secretary Adam Walker and former Treasurer Domingo Albarran Jr. — together made more than $530,000 in credit card transactions with no receipts or partial documentation.
Auditors did not reexamine those findings in the new report.
Under UFLAC policy, receipts are required for all credit card expenditures, along with an explanation of the expense, including the names of those present and the business reason.
Vice Presidents Chuong Ho and Doug Coates also were suspended and accused of breaching their fiduciary duties in “failing to enforce UFLAC policy.”
After the audit, the IAFF appointed a conservator, John Bagala, to take over the union and “restore responsible financial stewardship and guarantee the fulfillment of UFLAC’s legitimate objectives.”
Bagala is a state representative for the IAFF and president of Marin Professional Firefighters, IAFF Local 1775, which represents firefighters in Marin County.
In a statement Thursday, IAFF spokesperson Ryan Heffernan said the conservatorship is focused on implementing safeguards to prevent future financial mismanagement.
“During this temporary conservatorship, the IAFF remains focused on meeting members’ critical needs and protecting their hard-earned dues money,” he said.
