House Republicans release report on FireAid fund distribution

Organizers of last January's FireAid benefit concert are once again facing accusations that the $100 million in donations did not directly help victims of the Los Angeles fires, after House Republicans published findings from their investigation on Tuesday.

Rep. Kevin Kiley (R-Rocklin), who helped launch the investigation, claimed the "report highlights where the funds were not used in the way that the donors would likely have wanted them to be used."

In its report, the House Judiciary Committee stated money went to "left-leaning pet projects, illegal aliens, and the administrative costs related to running non-profit organizations."

"You had examples of funds used for voter outreach efforts, towards political advocacy groups, towards podcasters, fungus planting, those examples are pretty troubling," Kiley said. "I do want to be clear, there were many organizations that got funds, nonprofits that are certainly very worthy nonprofits."

FireAid organizers denied the claims made in the report. They stood by their original promise that all money raised during the concert would go to well-known, vetted nonprofits serving residents of Altadena, Pasadena, Pacific Palisades and Malibu.

In September, the organizers released an independent audit conducted by an outside law firm detailing the distribution of funds. The audit found no indication of fraud or misappropriation of funds, according to the law firm that conducted the probe.   

"It is important the survivors and our LA community have real insight into how FireAid funds are supporting recovery," FireAid said in a statement in September. "The Latham & Watkins Investigative Report affirms that FireAid's grantmaking was transparent, mission-aligned, and impactful for fire-affected communities across Los Angeles. We remain committed to helping communities affected by the Eaton and Palisade Fires rebuild and recover, and providing transparent documentation of progress and impact."

The Los Angeles Times also published a breakdown of funding distribution and reached a similar conclusion. 

"This is uni-partisan," said Representative Brad Sherman (D-Sherman Oaks), who also represents the Palisades. "They chose not to involve me or Judy Chu, or any of the Democrats on the relevant committee. They seem to hate the organization because maybe some of the money, a small portion, went to undocumented immigrants."

The FireAid benefit concert, produced by Clippers owner Steve Ballmer, happened shortly after the January wildfires at both the Kia Forum and the Intuit Dome. Ballmer and his wife, Connie, matched donations made during the event, raising a total of $100 million. The money went to a wide range of nonprofits, including food banks, the Pasadena Humane Society and advocacy groups for marginalized communities. 

Kiley called for an investigation after seeing allegations of fraud on the internet. 

"The two issues are that: No.1, the funds didn't go directly to victims when a lot of people thought that would happen," Kiley said. "And then No. 2: maybe there were some of the nonprofits who got the grants that were not engaged in the sort of activities the concert was intended to benefit."

House Republicans also criticized FireAid for allowing donated funds to be used for payroll expenses at some nonprofits, including the Neighborhood Legal Services of Los Angeles County, which provided free legal aid to fire victims. 

"The attack in this report is that money was spent for salaries," Sherman said. "If you're going to be a legal aid center, you're going to have to hire attorneys."

Over the past year, CBS LA has examined many of the nonprofits that received funds, including animal shelters, food banks, and child care centers, each of which said FireAid delivered on its promises and helped make a difference for victims in the aftermath.