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The rise and fall of 'Mr. Cudahy'

George Perez went from janitor to fired city manager in the small southeast L.A. County town of Cudahy. Now he's apparently at the heart of a corruption scandal.

August 29, 2012|By Hector Becerra, Jeff Gottlieb and Ruben Vives, Los Angeles Times
  • George Perez, who grew up in Cadahy, has a tattoo of the city seal on his leg. In a town rocked by corruption allegations, his initials, “G.P.,” feature prominently in court documents, though he has not been charged.
George Perez, who grew up in Cadahy, has a tattoo of the city seal on his leg.… (Gina Ferazzi / Los Angeles…)

George Perez started at the bottom of Cudahy city government, cleaning toilets as a $6.50-an-hour a janitor.

He was ambitious, though, and in eight years was elected to the City Council. Six years later, with no college education or management training, Perez was running the southeast L.A. County town as city manager.

He became the embodiment of power in the working-class immigrant city along the 710 Freeway. His up-from-the-bootstraps story made him a hero to some — a kind of "Mr. Cudahy," with a tattoo of the city seal on his right leg to prove it. He served as emcee at town hall meetings, where door prizes such as blenders, fans and heaters were raffled off. When people came to City Hall to complain, Perez sometimes met them personally.

But now, Cudahy is mired in scandal, and Perez appears to be in the center of it. Three city officials have pleaded guilty to what federal prosecutors described as deeply rooted corruption. Perez has not been charged, but court documents repeatedly refer to a top city official identified as "G.P." orchestrating much of the alleged wrongdoing. Two law enforcement sources said "G.P." is George Perez.

Federal documents paint Cudahy as a place where bribes became routine, elections were fixed on Perez's orders, city workers acted as gun-packing bodyguards, and the city manager sent underlings to bring illegally obtained pain pills back to City Hall. They describe Perez being chauffeured to a Denny's restaurant to pick up bribes.

Many residents said the allegations did not surprise them. They said that despite his populist persona, rumors of corruption long flowed from Cudahy City Hall, where nothing seemed to happen without Perez's blessing.

"Everything had to go through him," said Martin Fuentes, 37, a longtime Cudahy resident who knows Perez. "You had to talk to George first if you wanted to get anything done."

Perez declined to comment for this article, but in the past he strongly denied any wrongdoing. In a brief conversation outside his Hacienda Heights home, his wife, Tania, said he loved the city and said he did nothing illegal.

Perez grew up in a Cudahy as it and other cities in southeast L.A. County were struggling. After World War II, factories such as General Motors, Chrysler and Bethlehem Steel formed the region's industrial core, providing jobs. Cudahy had been sparsely populated until the 1960s, when developers began building apartments on unusually deep lots.

Cudahy became the state's second-densest city, behind only Maywood, with 25,000 residents squeezed into 1.2 square miles. About 95% of the city is Latino, many of them immigrants just scraping by.

Rise to power

In 1986, Perez, then 26, got a part-time job as a city janitor. Several years later, he became a senior parks and recreation leader making $8 an hour. In 1994, he was elected to the City Council.

By 2000, Perez, married and with four children, was serving on the City Council and working at a building materials store. Then he lost his job. The council changed city laws so it could appoint Perez city manager. A group of Southern California city managers were so disturbed by Perez's elevation that they asked for a criminal investigation. County prosecutors launched a conflict-of-interest probe, but investigators were met with silence at Cudahy City Hall, they said. In a memo produced by the prosecutors, they wrote that it was "clear that Perez liked politics and power more than the building materials business."

Perez quickly emerged as Cudahy's power broker, handpicking the City Council, longtime city official Angel Perales told an FBI informant wearing a wire late last year.

"George brought them in," said Perales, who has pleaded guilty to bribery and extortion. "And you know why? Because he could manipulate them.... They were his puppets."

By then, Perez had traded in his glasses, baseball caps and shirts with a pocket protector and was wearing finely tailored suits and sporting a dome of well-coiffed hair.

If an outside candidate wanted an endorsement from a Cudahy council member, he had to go through Perez, said Mario Beltran, a campaign consultant and ex-Bell Gardens councilman. "By far he was more politically involved and influential than most city managers I know," Beltran said.

Winning elected office in Cudahy without Perez's support was considered impossible. In late 2008, when Perez did not want incumbent Rosa Diaz to run in the following spring's election, he offered her a job at City Hall, according to a phone recording between the two obtained by The Times. After she told Cudahy's city attorney, David Olivas, about Perez's proposal, the city manager became upset.

"When you and I spoke, and I offered you a position here, that was between you and me and no one else," Perez told Diaz. "And you started talking to David, and something like that could more or less be illegal."

He also expressed frustration that she wanted the job offer in writing. "I'm not going to jail," he said on the tape.

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