Two former Los Angeles Memorial Coliseum executives accused of mishandling public funds pleaded not guilty Friday to corruption charges detailed in a 29-count felony indictment.
Former Coliseum General Manager Patrick Lynch and former events manager Todd DeStefano were arrested Thursday. They are among six people charged in the indictment -- unsealed Friday -- that alleges agreements between the public officials and music promoters ensured shows would continue at the Coliseum even after the death of a 15-year-old girl who attended one of the events.
Former technical manager Leopold Caudillo Jr., music and event promoters Pasquale Rotella and Reza Gerami, and janitorial contractor Antonio Estrada also are named in the indictment. The indictment alleges bribery, embezzlement, conspiracy and conflict of interest. It also alleges that millions of dollars were stolen from stadium operations.
Gerami is the owner of music events company Go Ventures Inc. -- which put on music shows at the LA Coliseum and adjacent Sports Arena. He also pleaded not guilty Friday.
Pasquale Rotella, the founder of rave promoter Insomniac Inc, appeared in court Friday and was taken into custody. He later pleaded not guilty.
The other two defendants have not been arrested because they are not in the country, the DA's office said.
The Coliseum Commission -- the body that represents city, county and state Coliseum stakeholders -- sued Lynch and DeStefano in November, alleging that the pair mismanaged funds and diverted money for their own use. But DeStefano's attorneys claim he was just doing what the Commission wanted.
"Todd DeStefano did exactly what Coliseum Commissioners asked and expected him to do -- make the Coliseum and Sports Arena a profitable enterprise," attorney Richard Hirsch said in a statement. "Rather than owning up to their failure to manage the Coliseum, a group of Commissioners with the help of the District Attorney are trying to turn attention away from their own mismanagement by manipulating the facts to support unfounded criminal charges against Mr. DeStefano."
Since 1995, the Coliseum's lone continuous tenant has been USC football.
DeStefano and Lynch both resigned after conflict of interest allegations involving companies that did business with the Coliseum. The indicitment alleges that DeStefano received more than $1.8 million form Insomniac, which produced the Electric Daisy Carnival at the Coliseum, and Go Ventures.
"In exchange, DeStefano used his public position to limit the payments due the Coliseum and ensure the concerts continued even after a highly publicized fatality after one of the concerts in the summer of 2010," the DA's office said in a statement.
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That was a reference to the death of 15-year-old Sasha Rodriguez, who attended the Electric Daisy Carnival -- an electronic music show.
Lynch was aware of the agreements and facilitated DeStefano's arragement with the promoters, according to the DA's office. The indictment claims Lynch profited from an arrangement with Estrada, owner of the janitorial company that cleans the Coliseum.
Estrada allegedly wrote $385,000 in checks, giving some to Lynch and depositing other in a bank account set up by Lynch, according to prosecutors. Lynch is accused of allowing Estrada's company to bill the Coliseum at a higher rate, according to the indictment.
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