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Ominous History in Real Time: Where We Are Now in the USA

This article is adapted from the new edition of Norman Solomon’s book “Made Love, Got War,” just published as a free e-book.

The final big legislative achievement of 2021 was a bill authorizing $768 billion in military spending for the next fiscal year. President Biden signed it two days after the Christmas holiday glorifying the Prince of Peace.

Dollar figures can look abstract on a screen, but they indicate the extent of the mania. Biden had asked for “only” $12 billion more than President Trump’s bloated military budget of the previous year — but that wasn’t enough for the bipartisan hawkery in the House and Senate, which provided a boost of $37 billion instead.

Overall, military spending accounts for about half of the federal government’s total discretionary spending — while programs for helping instead of killing are on short rations at many local, state, and national government agencies. It’s a nonstop trend of reinforcing the warfare state in sync with warped neoliberal priorities. While outsized profits keep benefiting the upper class and enriching the already obscenely rich, the cascading effects of extreme income inequality are drowning the hopes of the many.

Corporate power constrains just about everything, whether healthcare or education or housing or jobs or measures for responding to the climate emergency. What prevails is the political structure of the economy.

Class war in the United States has established what amounts to oligarchy. A zero-sum economic system, aka corporate capitalism, is constantly exercising its power to reward and deprive. The dominant forces of class warfare — disproportionately afflicting people of color while also steadily harming many millions of whites — continue to undermine basic human rights including equal justice and economic security. In the real world, financial power is political power. A system that runs on money is adept at running over people without it.

The words “I can’t breathe,” repeated nearly a dozen times by Eric Garner in a deadly police chokehold, resonated for countless people whose names we’ll never know. The intersections of racial injustice and predatory capitalism are especially virulent zones, where many lives gradually or suddenly lose what is essential for life. Discussions of terms like “racism” and “poverty” too easily become facile, abstracted from human consequences, while unknown lives suffocate at the hands of routine injustice, systematic cruelties, the way things predictably are.

An all-out war on democracy is now underway in the United States. More than ever, the Republican Party is the electoral arm of unabashed white supremacy as well as such toxicities as xenophobia, nativism, anti-gay bigotry, patriarchy and misogyny. The party’s rigid climate denial is nothing short of deranged. Its approach to the Covid pandemic has amounted to an embrace of death in the name of rancid individualism. With its Supreme Court justices in place, the “Grand Old Party” has methodically slashed voting rights and abortion rights. Overall, on domestic matters, the partisan matchup is between neoliberalism and neofascism. While the abhorrent roles of the Democratic leadership are extensive, to put it mildly, the two parties now represent hugely different constituencies and agendas at home. Not so on matters of war and peace.

Both parties continue to champion what Martin Luther King Jr. called “the madness of militarism.” When King described the profligate spending for a distant war as “some demonic, destructive suction tube,” he was condemning dynamics that endure with a vengeance. Today, the madness and the denial are no less entrenched. A militaristic core serves as a sacred touchstone for faith in America as the world’s one and only indispensable nation. Gargantuan Pentagon budgets are taken for granted, as is the assumed prerogative to bomb other countries at will.

Every budget has continued to include massive outlays for nuclear weapons, including gigantic expenditures for so-called “modernization” of the nuclear arsenal. A fact that this book cited when it was first published that the United States had ten thousand nuclear warheads and Russia had a comparable number — is no longer true; most estimates say those stockpiles are now about half as large. But the current situation is actually much more dangerous. In 2007, the Doomsday Clock maintained by The Bulletin of the Atomic Scientists pegged the world’s proximity to annihilation at five minutes to apocalyptic Midnight. As 2022 began, the symbolic hands were at one hundred seconds to Midnight. Such is the momentum of the nuclear arms race, fueled by profit-driven military contractors. Lofty rhetoric about seeking peace is never a real brake on the nationalistic thrust of militarism.

With the withdrawal of U.S. troops from Afghanistan, the third decade of this century is shaping up to unfold new wrinkles in American hegemonic conceits. Along the way, Joe Biden has echoed a central precept of doublethink in George Orwell’s most famous novel, 1984: “War is Peace.” Speaking at the United Nations as the autumn of 2021 began, Biden proclaimed: “I stand here today, for the first time in twenty years, with the United States not at war. We’ve turned the page.” But the turned page was bound into a volume of killing with no foreseeable end. The United States remained at war, bombing in the Middle East and elsewhere, with much information withheld from the public. And increases in U.S. belligerence toward both Russia and China escalated the risks of a military confrontation that could lead to nuclear war.

A rosy view of the USA’s future is only possible when ignoring history in real time. After four years of the poisonous Trump presidency, the Biden strain of corporate liberalism offers a mix of antidotes and ongoing toxins. The Republican Party, now neofascist, is in a strong position to gain control of the U.S. government by mid-decade. Preventing such a cataclysm seems beyond the grasp of the same Democratic Party elites that paved the way for Donald Trump to become president in the first place. Realism about the current situation — clarity about how we got here and where we are now — is necessary to mitigate impending disasters and help create a better future. Vital truths must be told. And acted upon.


Norman Solomon is the national director of RootsAction.org and the author of a dozen books including Made Love, Got War: Close Encounters with America’s Warfare State, published in a new edition as a free e-book in January 2022. His other books include War Made Easy: How Presidents and Pundits Keep Spinning Us to Death. He was a Bernie Sanders delegate from California to the 2016 and 2020 Democratic National Conventions. Solomon is the founder and executive director of the Institute for Public Accuracy.

County Files Lawsuit in the Dominguez Channel Odor Incident

Los Angeles County Jan. 13, filed a lawsuit against the tenants and property owners of the warehouse in Carson where a massive fire released illegally-stored chemicals into the Dominguez Channel and created hydrogen sulfide gas odors that caused a public nuisance affecting thousands of residents.

The lawsuit, filed in Superior Court, names 10 defendants, including Liberty Property Limited Partnership, which owns the warehouse, and its parent company, Prologis Inc.

The suit alleges that the tenants and the corporate owners of the warehouse facility were aware of the hazards and fire danger at the site and could have taken steps to prevent the dangerous conditions that led to the fire, but failed to do so. As a result of the fire, chemicals from the site entered the storm drain and then the channel resulting in the creation of hydrogen sulfide gas that significantly impacted thousands of County residents.

The County and its Flood Control District incurred tens of millions of dollars in response costs from the resulting incident, including relocation benefits for residents, air filters, and various abatement measures.

The lawsuit seeks to:

  • Recover the County’s costs incurred in responding to the incident;
  • Obtain injunctive relief and civil penalties for the public nuisance, the unlawful business practices, and the violations of hazardous waste and other laws.

The complaint is available here.

California Man Pleads Guilty For Destroying Property During Jan. 6 Capitol Breach

WASHINGTON —A California man pleaded guilty Jan. 14, to a felony charge of destruction of government property for crimes related to the breach of the U.S. Capitol on Jan. 6, 2021, which disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election.

According to court documents, Hunter Ehmke, 21, of Glendora, California, was part of a large crowd gathered about 2:15 p.m. on Jan. 6 outside the Rotunda Door on the East side of the Capitol building. He jumped up onto a ledge of a window that has multiple panes and leads to an office inside. Ehmke, using his right foot, kicked in the three lower panes of the window, shattering them.

Then, using his right fist, he smashed two additional window panes. According to the Architect of the Capitol, the damage to the five broken window panes totaled $2,821. Ehmke was arrested in California on Jan. 13, 2021. He pleaded guilty in the U.S. District Court for the District of Columbia and is to be sentenced on May 11, 2022.

This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice national security division’s counterterrorism section.

In the one year since Jan. 6, more than 725 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 225 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.

Anyone with tips can call 1-800-225-5324 or visit tips.fbi.gov.

LAHSA Postpones 2022 Point-in-Time Homeless Count

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Los Angeles – Today, the Los Angeles Homeless Services Authority (LAHSA) announced the postponement of the 2022 Greater Los Angeles Point-in-Time (PIT) Homeless Count to February 22-24, 2022. LAHSA cited protecting the health and safety of itsvolunteers,staff, and people experiencinghomelessness as the reason for the delay, in light of the current COVID-19 Omicron variant surge in Los Angeles County.

The Homeless Count will still be conducted over three nights in different parts of the region:

      • February 22, 2022: San Gabriel and San Fernando Valleys
      • February 23, 2022: West Los Angeles, Southeast Los Angeles, and the South Bay
      • February 24, 2022: Antelope Valley, Metro Los Angeles, and South Los Angeles

The U.S. Department of Housing and Urban Development(HUD), which requires Continuums of Care to conduct PIT Counts as a means of determining federal funding to address homelessness, approved the postponement.

“While we work to ensure an accurate Homeless Count, we cannot ignore the surging number of positive COVID-19 cases across our region,” said LAHSA Executive Director Heidi Marston.“Even with safety precautions such as moving training online, developing outdoor deployment sites, and keeping households together, moving forward with a count in January places our unhoused neighbors, volunteers, staff, and the accuracy of the Count at risk.

Even before the Omicron variant led to a surge, LAHSA made several anticipated design changes to the 2022 Homeless Count to limit COVID-19 transmission, including:

      • Moving most deployment sites outdoors— at many sites, volunteers will not leave their cars to pick up their count packets
      • Moving training sessions online to minimize the time volunteers spend at the deployment sites; COVID safety instructions are included in the training
      • Encouraging all volunteers to sign up as a “safety bubble” of two to three people and arrive at the deployment sites together to minimize cross-group interactions
      • Requiring all volunteers to use masks
      • Encouraging all volunteers to be vaccinated

LAHSAhaspartnered with Akido Labs to develop a mobile app that uploads data collected to a central server instead of returning paper sheets to local sites for manual tallying. Using the new app will improve data gathering and quality assurance processes while limiting the number of in-person contact volunteers have with Homeless Count staff.LAHSA will continue to improve upon and implement policies and practices that limit the amount of in-person contact during the Homeless Count.

“The Homeless Count is an essential tool in giving us a point-in-time snapshotof homelessness. Data from the Count is used to inform the delivery of services and programs for people experiencing homelessness in Los Angeles,” continued Marston. “This decision is our best path toensure the accuracy of the Homeless Count without putting the health and safety of persons experiencing homelessness, volunteers, and the community at risk.”

Since 2016, the Los Angeles Continuum of Care, overseen by LAHSA, has conducted the Greater Los Angeles Homeless PIT Countannually to gain a better understandingofhomelessness across the County and to support applications for federal funding. HUD requires that all communities conducta census of people experiencing homelessness every other year.

Last year, the Homeless Count’s main component, the unsheltered street count, could not be conducted due to the COVID-19 pandemic. The availability of vaccinations enabled the resumption of the Homeless Count for 2022 with appropriate precautions.

In2020, the last time the Count could safely be conducted, 66,436 people were found to be living on the street in tents, makeshift dwellings, and vehicles across Los Angeles County.

LAHSA continues to seek volunteers to count in February. Those interested can visittheycountwillyou.orgfor more information and register.

Garcia Overstates Progress, Looks Beyond Long Beach in Final “State of the City”

At under 17 minutes, Long Beach Mayor Robert Garcia’s seventh and final “State of the City” address may have been his shortest, but that didn’t stop him from being long on optimism and offering several lines seemingly intended more for ears inside the Beltway than here at home.

The first of those lines came early when the man who would be congressman — Garcia is seeking (and likely to win) retiring Congressman Alan Lowenthal’s 47th District seat — will not be mayor this time next year. “Until then,” he said, “I’m going to work every single day to ensure we build back even better” — an unveiled reference to President Joe Biden’s “Build Back Better Act,” which Garcia again name-checked later in his speech.

From there Garcia opened his state-of-the-city comments proper, beginning with — what else? — the COVID-19 pandemic (“the single largest crisis our city has ever experienced,” etc.), boasting Long Beach’s success in getting out in front of most of the country.

“Early on in this pandemic, the White House and the President called Long Beach ‘a national model for COVID-19 testing and vaccinations,’” Garcia said. “Long Beach was the first city to vaccinate public school teachers and educators, first to vaccinate food workers, and first to vaccinate dock workers. Today, more than 85% of all adults in Long Beach are vaccinated […] and 99% of our seniors are vaccinated.”

But as has often been the case with his “State of the City” addresses, Garcia appears to be fudging some of his numbers. According to the Los Angeles County Department of Public Health, as of January 6 — six days before Garcia’s speech — only 79.6% of Long Beach adults had been vaccinated (i.e., received at least one dose of the COVID-19 vaccine), including 95.8% of seniors. (If we take “vaccinated” to mean “fully vaccinated,” Garcia’s numbers are something along the lines of an additional 10% too high.)

Regarding the local economy, Garcia briefly charted the ups and downs in unemployment during his term, noting a 9% unemployment rate when he took office, a 4.6% pre-pandemic level, a 21% peak during the pandemic, and a current rate of 7.7%. (Note: The Long Beach Business Journal reports pre-pandemic unemployment to have been 4.8%, with a peak of 19% in May 2020.)

While admitting that “we still have a long way to go,” Garcia neglected to note that, as reported by the Long Beach Business Journal in mid-December, Long Beach has a higher unemployment rate than 70% of Los Angeles County cities, with L.A. County having “among the highest [unemployment rates] in the state.”

Elsewhere, Garcia celebrated the achievements of the Port of Long Beach, while stating the need for making further progress on reducing emissions.

“As you know, the Port of Long Beach has been breaking records all year, and the doom and gloom predictions of empty store shelves and a ruined holiday never happened,” he said. “In fact, last year, we handled more than 9 million cargo containers. That’s more than at any time in our city’s history […] And while emissions are down 90% since 2005, we must continue to ensure we focus on stronger clean air standards — and the zero-emission trucks of the future. […] We will be finalizing our climate action plan and will be phasing out oil production by 2035 at the latest — five years ahead of the state.”

But the Los Angeles Times Editorial Board has been less than impressed with Garcia’s leadership on this issue:

In 2017, Los Angeles Mayor Eric Garcetti and Long Beach Mayor Robert Garcia pledged to transform the port complex into a zero-emissions facility by 2035. But the region can’t wait 14 years for cleaner air. There’s growing frustration from air quality regulators and environmentalists that the ports — which are seeing record traffic — are not aggressively pushing for cleaner equipment and emissions cuts now. […] This is a moment when the region should be sprinting to adopt pollution-cutting policies. Southern California has a 2023 deadline to dramatically cut smog-forming emissions to meet Clean Air Act standards. The region will almost certainly miss the deadline and could face hefty federal penalties. […] During the last nine years, smog-forming emissions from the ports have barely decreased, according to the [Air Quality Management District]. (“Editorial: Port pollution is choking Southern California,” 8/16/21)

Among city initiatives to aid financially-challenged residents, Garcia touted recent “tenant protections, eviction moratoriums, and direct rent relief for tenants and families,” all of which “must continue,” along with a “move towards a free public transit for all” and the initiation of a Guaranteed Income pilot program, “[which] will provide 500 single parents living in poverty with $500 a month for an entire year, [plus] additional support like access to broadband, childcare, and other critical services.”

Among other current challenges, Garcia noted California’s “massive housing crisis — and Long Beach is no exception.” Among the recent efforts to ameliorate the situation, Garcia highlighted the “open[ing of] the city’s first municipal run shelter for unhoused people last summer, [which has] been operating at or near capacity”; and “three motel conversion projects that […] have added 280 units for people experiencing homelessness. And this year, we must commit to converting more motels to housing.”

Garcia reported that 2021 saw a 7.7% jump in violent crime over the previous year, which is consistent with a general trend across the U.S. — although he noted that, unlike most cities state- and nationwide, Long Beach’s murder rate did not show a similar increase.

Garcia spoke notably less about policing than he did last January, saying only that the city must “ensure we have enough officers on the streets,” that they “continue focusing on community policing by expanding bike patrols, neighborhood walks, and community partnerships,” and that “we will continue transitioning to a new 911 response model for those who need mental health assistance and not police officers.”

Whereas last year he spoke of the need for his city to “recognize the harms of systemic injustice,” partly by “reforming the Citizens Police Complaint Commission” through “major and significant changes,” on Wednesday Garcia was conspicuously silent on the subject, despite the recent conclusion of a CPCC review by a team of consulting firms, Polis Solutions and Change Integration, whose report and recommendations are slated for release this month.

Garcia closed his remarks with a series of shots clearly aimed beyond the confines of Long Beach: “We have an opportunity to turn the page on a dark moment in our history. We are better than what we see on cable television and on social media. We cannot become a country where truth becomes overwhelmed by lies. We cannot become a country where science is challenged by fear. We cannot become a country where demagogues try to chip away at our democracy. And we cannot be a country where we shut our doors and look away from the suffering and dreams of people outside our borders.”

Feuer Encourages Angelenos To Beware And Report COVID Test Kit Price Gouging

LOS ANGELES – In response to the rapid rise in COVID-19 infections due to the highly contagious Omicron variant, reports of exorbitantly-priced at-home test kits, and Governor Newsom’s January 8 Executive Order, City Attorney Mike Feuer Jan. 13, encouraged Angelenos to beware of price gouging and report instances of it to his office. People may file a consumer complaint online at or by calling 213-978-8070.

The City Attorney is also working closely with the Los Angeles Department of Consumer and Business Affairs or DCBA on these matters.

Besides ripping off consumers, price gouging has another negative consequence. Even if consumers don’t make the purchase, just seeing overly-inflated prices can raise concerns and fuel general panic about a scarcity of items tied to this emergency. Consumers can report price gouging that they see in-store or online by providing evidence of the price that is advertised and, if known, information about the previous lower price, even if they never purchased the product.

Gov. Newsom’s executive order, enforceable through March 31, 2022, generally prohibits anyone who sold at-home test kits as of Dec. 1, 2021 from increasing prices by greater than 10% of what the seller charged on Dec. 1. Additionally, it prohibits anyone who did not sell at-home test kits as of Dec. 1, 2021, from charging any consumer a price that is 50% greater than what the seller paid for the kit itself.

Violations of the executive order are misdemeanors under Government Code section 8665, and each act of price gouging is punishable by a fine of up to $1,000 and/or up to six months imprisonment.

Feuer encourages consumers to check that the test they want to purchase has been authorized by the Food and Drug Administration, which currently lists 311 tests. Check Antigen (rapid result) tests here: https://bit.ly/3qnFCfx Check PCR tests here: https://bit.ly/3qp2ETx

Additionally, amid reports that Angelenos are encountering “pop-up” testing sites which may not be legitimate, and potentially could be committing identity theft or insurance fraud, Feuer urged Angelenos to go online for a list of sites authorized by the Los Angeles County Department of Public Health. Other locations may be legitimate as well, and Feuer recommends searching online for reviews and consumer complaints before getting tested at those sites. The City Attorney’s Office is working with L.A. County Dept. of Consumer and Business Affairs, California Dept. of Public Health and the County Counsel to address this important consumer issue.

Former LA City Attorney’s Official Agrees to Plead Guilty to Extortion Charge

LOS ANGELES – A former senior official at the Los Angeles City Attorney’s Office has agreed to plead guilty to a federal charge for threatening to fire a plaintiffs’ attorney from a lucrative special counsel job with the city unless the attorney paid a substantial extortion demand from a former employee who was threatening to expose the city’s collusive litigation over its faulty water-and-power billing system, the Justice Department announced Jan. 12.

Thomas H. Peters, 55, of Pacific Palisades, agreed to plead guilty to a one-count information charging him with aiding and abetting extortion, a crime that carries a statutory maximum sentence of 20 years in federal prison.

The information and plea agreement were filed today in United States District Court. Peters is expected to make his initial court appearance Feb. 7.

This is the fourth plea agreement federal prosecutors have filed in relation to the ongoing investigation concerning corruption and collusion involving the Los Angeles Department of Water and Power (LADWP) and the Los Angeles City Attorney’s Office. Peters is cooperating with the investigation.

Peters served as the chief of the Civil Litigation Branch of the Los Angeles City Attorney’s Office from February 2014 to March 2019. By December 2014, the city and LADWP were facing multiple class-action lawsuits over the flawed rollout of a new billing system during the previous year.

Also in December 2014, the City Attorney’s Office hired Paul O. Paradis, 58, a New York-based lawyer, and Paul R. Kiesel, a Beverly Hills plaintiffs’ attorney, as special counsel to represent the city in an anticipated lawsuit against PricewaterhouseCoopers (PwC), the vendor the city blamed for the billing system debacle in which thousands of ratepayers were massively overcharged, while others were significantly undercharged, resulting in financial losses to the city and LADWP.

The city’s lawsuit, filed in March 2015, alleged that PwC caused hundreds of millions of dollars in damages due to the faulty billing system. The city agreed to pay Paradis and Kiesel 19.9 percent of any recovery in the litigation, meaning the two lawyers stood to gain tens of millions of dollars in attorneys’ fees from the case.

The FBI is investigating this matter. Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s email tip line at pctips-losangeles@fbi.gov or to contact the FBI at 310-477-6565.

Gov. Newsom Announces Appointments in LA, Carson

SACRAMENTO — Gov. Gavin Newsom in the first two-weeks of January announced the following appointments.

Marissa Christiansen, 40, of Los Angeles, to the Los Angeles Regional Water Quality Control Board. Christiansen has been president and chief executive officer at Friends of the Los Angeles River since 2018, where she has held multiple positions since 2016, including senior director of policy and advocacy and executive director. She was senior manager of Alliances at XPRIZE from 2013 to 2015 and assistant to the city manager at the City of Redondo Beach from 2012 to 2013. Christiansen was director of the South Bay Initiative at the Los Angeles County Bicycle Coalition from 2010 to 2012 and an associate of corporate operations and real estate at the Walt Disney Company from 2007 to 2009. She earned a Master of Public Policy degree in urban planning from the University of Southern California. This position requires Senate confirmation and the compensation is $250 per diem. Christiansen is a Democrat.

Catherine Bando, 66, of Los Angeles, has been reappointed to the California Catastrophe Response Council, where she has served since 2019. Bando has been executive director at the California Statewide Communities Development Authority since 2014 and has been principal at Bando Public Finance since 2012. Bando was director at Citigroup Global Markets from 2010 to 2011. She was partner at Greencoast Capital Partners from 2009 to 2010. Bando was managing director at J.P. Morgan in 2008 and at RBC Capital Markets from 1990 to 2008. Bando earned a Master of Business Administration degree from American University. This position does not require Senate confirmation and there is no compensation. Bando is a Democrat.

Debra Lee, 61, of Carson, has been reappointed deputy chief of safety in the division of occupational safety and health at the California Department of Industrial Relations, where she has served since 2015. She held several positions at the department from 1994 to 2015, including regional manager, district manager, associate industrial hygienist and assistant industrial hygienist. She was an industrial hygienist at Northrop Corporation from 1992 to 1994, at the Georgia Department of Natural Resources from 1990 to 1992, at Health Science Associates from 1987 to 1990 and at TRW Electronics from 1985 to 1987. This position does not require Senate confirmation and the compensation is $181,968. Lee is a Democrat.

Troubling Increase in Deaths Due to COVID-19; Positivity Rate Among Students, School Staff More than 14%

As the Omicron variant continues to spread across the county, Public Health Jan 12, reported a total of 39 deaths, the highest number of new deaths since Sept. 22, when Public Health reported 41 new deaths. Of the 36 deaths for which Public Health has full data, 78% were among those 65 years of age and older. All deaths occurred in January, likely reflecting an increase in deaths associated with the higher December case and hospitalization numbers.

As more students and staff returned to in-person learning this week, amid the surge in cases, routine testing at schools across many districts identified thousands of students and staff infected with COVID-19. For the week of Jan. 3 through Jan. 9, 547,466 tests were administered across school districts in the County, with most testing occurring for LAUSD students and staff. Last week, 80,424 positive cases were identified, including 68,560 cases among LAUSD staff and students, resulting in a test positivity rate of 14.6%. A total of three outbreaks among youth sports teams were also identified last week, with an additional 26 school related outbreaks still being monitored.

In response to this latest surge, Public Health is working closely with LACOE and school districts to implement additional layers of protection for staff and students. This includes delivering over 1.4 million test kits, provided by the state, to 84 school districts and charter schools, and expanding contracted testing capacity at parochial and private schools. Additionally, exposure management and testing resources have been aligned to support safely allowing as many students and staff to remain in school during the surge.

For updated isolation and quarantine guidance, please visit www.publichealth.lacounty.gov

To find a vaccination site near you, or to make an appointment, visit:

www.VaccinateLACounty.com (English) or www.VacunateLosAngeles.com (Spanish) or call 1-833-540-0473.

City Attorney Mike Feuer Secures $2.75-Million Settlement of Lawsuit Against Lear Capital

LOS ANGELES — City Attorney Mike Feuer announced Jan. 10, that his Office has secured a $2.75-million settlement with Lear Capital, Inc., a Los Angeles-based gold/silver coin dealer, to resolve allegations raised in Feuer’s 2019 lawsuit that Lear had engaged in unfair and deceptive business practices. As part of this settlement, Lear is required to implement changes to its business practices, protecting consumers nationwide. Eligible customers can also receive restitution.

Feuer filed the lawsuit in June 2019, alleging that Lear Capital routinely charged customers exorbitant fees for their investments under false pretenses. The lawsuit alleged that Lear Capital promised customers that it would charge a small transaction fee, when actually, Lear often collected a fee equaling 33% of the customer’s total purchase price. The lawsuit further alleged that Lear Capital limited communications with customers to the phone, before purchases were finalized, thereby eliminating any paper trail of the allegedly misleading representations salespeople verbally made to customers.

As alleged, customers relied on Lear Capital’s verbal promises, often discovering the actual fee Lear Capital charged for their transactions after it was too late – since Lear Capital typically didn’t provide terms of any transaction in writing until the customer already paid. The lawsuit additionally alleged that Lear Capital threatened customers if they went public about their complaints.

In addition to the $2.75-million monetary settlement, Lear Capital must change how it conducts business, protecting consumers nationwide.

Eligible Lear Capital customers will be contacted by an independent third party handling the claims administration process. Feuer’s office estimates that restitution will be paid in or around April.