The district attorney's office has filed two misdemeanor charges against former City Administrator William H. Kraus for allegedly failing to disclose $60,000 worth of personal loans on economic statements of interest.
Kraus is scheduled to be arraigned Monday in Los Angeles Municipal Court, said Deputy Dist. Atty. Candace J. Beason. If convicted, he would face up to a year in jail and a fine of up to $180,000, or three times the amount he failed to report, Beason said.
Kraus obtained the loans in 1982 from California First National Bank in Woodland Hills at the time he was city administrator and deputy treasurer of the Joint Powers Insurance Authority, an insurance consortium, Beason said. The loans were not reported to the city or the authority, Beason said.
The loans were obtained at less than market rate by Kraus and a business associate within days of a deposit Kraus made at the Woodland Hills bank of $100,000 in insurance authority funds, Beason said. Kraus could not be reached for comment.