Two LA Coliseum officials and one of the most prestigious rave promoters our city has to offer were arrested yesterday as part of a corruption scandal, but they aren’t telling us why. Former Coliseum general manager Patrick Lynch, events manager Todd DeStefano and rave promoter Reza Gerami were arrested by investigators early yesterday morning due to some shady business that hasn’t been publically announced just yet. “Rave” isn’t really the proper term for what they do, since their events are legitimate festivals and not illegal warehouse operations, but regardless something a little illegal went down.
LA Weekly stated the following:
“It has been reported that all kinds of shenanigans were happening at the venue in recent years, including, as the Weekly first reported, the shuffling of under-the-table cash to union stagehands who probably should otherwise received payroll checks for their work.
The payments were said to have been made by event promoters. That amounted to hundreds of thousands if not more than a million dollars.
On top of that, DeStefano was accused, in reporting by the Los Angeles Times, of taking money on the side—$1.5 million or more—from event organizers, including rave promoters. And Lynch, who allegedly stood by while all this happened, reportedly took advantage of perks and loopholes and was even accused of getting a publicly paid-for car out of his employment.
A tipster told us that "indictments" would come down this week. The District Attorney's office isn't commenting further.
The furor at the Coliseum started after a 15-year-old girl died of an ecstasy overdose after following her attendance of a 2010 rave there called Electric Daisy Carnival.
There was a public outcry, and promoters had to lobby and fight to maintain their four-times-a-year events at the Coliseum and the Sports Arena.”
You can read their full story with more details here. Check back with us next week as the full situation unravels.