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$172 million in property values unlawfully lowered, D.A. says

Scott SchenterA former Los Angeles County property appraiser was taken into custody in Oregon on Monday, accused of falsifying documents and unlawfully lowering property values by $172 million on multimillion-dollar homes and businesses.

Scott Schenter, 49, allegedly secured campaign contributions from the owners for Assessor John Noguez, authorities said.

“The magnitude of Schenter’s suspected betrayal of public trust is almost inconceivable,” L.A. County Dist. Atty. Steve Cooley said in a prepared statement. “We believe his actions are not isolated.”

Schenter, who resigned in lieu of termination in January 2011 after a supervisor discovered his alleged misconduct, was charged on 60 felony counts for falsifying records. He was taken into custody at his father’s home about noon by U.S. marshals, authorities said.

Prosecutors say they don’t know when Schenter will be extradited to Los Angeles.

Schenter told The Times last month that he secretly and improperly lowered property values to reduce the owners’ tax bills. He said he did it in the hope that the wealthy property owners would donate to Noguez.

Schenter also said Noguez offered him a promotion and, along with several top aides, had applied “brutal” pressure to raise campaign funds.

Through a spokesman, Noguez has denied offering Schenter a promotion, instructing him to lower the values of the Westside properties or asking him to approach the owners for contributions.

Noguez acknowledged, however, that he asked Schenter to “check the status” of some of the properties. He has also admitted asking Schenter to help raise money for his campaign.

On Monday, Noguez’s attorney, Michael Proctor, said his client “intends to remain cooperative with this investigation. While I cannot comment directly on the new charges today, I remain convinced that as the facts come out, people will understand that he has conducted his affairs in conformity with the law.”

Cooley has identified Noguez as a primary target of the broader influence-peddling investigation, which began last year. Also under scrutiny are several high-ranking assessor's office employees and Noguez campaign contributors, including tax consultant Ramin Salari.

Salari’s clients dominated the list of property owners who received improper tax breaks from Schenter. Salari has denied any wrongdoing.

Last week, Cooley publicly urged Noguez to resign after warning that indictments are imminent. Noguez has also denied any wrongdoing and said he has no intention of stepping down.

In addition to Schenter’s alleged crimes, Cooley said investigators were reviewing between 100 and 200 transactions in which top Noguez aides lowered assessed property values — often for generous contributors — despite appraisals done by assessor’s office staff showing the values should be higher.

In April, Cooley’s investigators searched Noguez’s home and office. They also searched the offices of top aides Mark McNeil and Andrew Stephens, the two men Noguez appointed to oversee reductions shortly after his election in November 2010.

Investigators also searched Salari’s Phoenix-area home and business and two Internet service providers.

Before his resignation in 2011, Schenter had worked in the assessor’s office for more than 20 years, mostly appraising properties on the Westside. He was suspended in 2009 for violating the  office’s code of ethics, records show, but the documents reveal no details about the case.

In his April interview with The Times, Schenter said Noguez had promised him a promotion in the summer of 2010 when Noguez was a high-ranking assessor’s office executive running for the agency’s top job.
After that, Schenter said, the pressure to raise money for the campaign was constant and “brutal.” Although he contributed $1,000 himself and got friends to give money, he said Noguez would call him “to say ‘Hey, Scott, we need more people; we’re way behind in donations.’”

Schenter said McNeil and Stephens also “kept coming at him in terms of wanting campaign contributions.”

McNeil has denied discussing contributions with Schenter or doing anything improper, but he told The Times in April that Noguez “might have” asked him to keep an eye on appeals from prominent donors.
Stephens could not be reached for comment.

ALSO:

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Design flaw at Expo and Blue Line junction has regulators on guard

-- Ruben Vives and Jack Dolan

Photo: Scott Schenter. Credit: Multnomah County Sheriff's Office

 
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