Watch CBS News

Arcadia Councilman Resigns Amid Investigation By Fair Political Practices Commission

ARCADIA (CBSLA.com) — Arcadia Councilman John Wuo has resigned amid an investigation by the California Fair Political Practices Commission.

In a letter read by Mayor Gary Kovacic during Tuesday night's city council meeting, Wuo cited health and personal reasons for his resignation, according to the San Gabriel Valley Tribune. He served on the council for 12 years, including a stint as mayor for three terms.

The resignation comes at a time of scrutiny for Wuo, whom the Fair Political Practices Commission is investigating for alleged violations of the Political Reform Act. A complaint filed by Arcadia resident David Arvizu prompted the investigation into alleged violations of the act's statement of economic interests disclosure requirements as well as the prohibitions regarding conflict of interest, the newspaper reported.

A lawsuit was intended to be certified as a class action was filed, alleging Wuo helped defraud investors in a $32 million "pyramid scheme." According to the Tribune, an attorney filed the lawsuit on behalf of U.S. and Chinese investors who were allegedly bilked by Arcadia-based business US Fine Investment Arts, Inc.

The lawsuit comes one week after federal authorities raided USFIA's corporate offices and days after the Securities and Exchange Commission filed fraud charges against USFIA, Chen and a dozen other companies he controls. Wuo was not included in those charges.

(©2015 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

EMERGENCY COMPONENT - LOCAL

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.