Posted: 6:33 p.m. Thursday, March 21, 2013

Oakland councilman under fire for more abuse of power allegations

Larry Reid
Larry Reid

OAKLAND, Calif. —

Oakland councilman Larry Reid is the target of a second investigation involving allegations that a local business paid money to get special treatment from the city.

KTVU obtained a report from a private investigator working for a business that was concerned about corruption at the former Oakland Army base.

The report includes an interview with a man who said his business partner paid money to get special treatment from City Hall and specifically from Council member Larry Reid, who is already the subject of a scathing report by the city auditor.

Urban Recycling Solutions, Inc. had a good deal on the site of the old Oakland Army base on Burma Road.

In 2009, it got approval from the city to accept materials such as concrete, asphalt and dirt.

But civil engineer and former Urban Recycling Solutions Partner Mahendra Shah told KTVU his business partner and owner of Urban Recycling, Tom Chasm, paid a longtime activist Darrel Carey $1,000 a week to get the city of Oakland's cooperation.

When asked by KTVU what the money was for, Shah said, "Just so that he can get whatever he wants from the city's approval." Shah explained Carey was able to do this because he had connections with Larry Reid.

According to the report, Shah also told a private investigator, "I heard Darrel tell Tom that Reid wanted to retire and Reid wanted $50,000 a year and that Tom needed to figure out how Reid was going to get the $50,000."

Chasm said he never said that. "I've never had that conversation with anyone," he said. 

Chasm did acknowledge he paid Darrel Carey to "open doors."

Carey said he never broke the law. He told KTVU he never gave any money to Larry Reid or other Council members. 

Council member Larry Reid strongly denied the allegations.

"It's really mind-boggling that someone can say that because they're in a relationship with someone else that they paid me $50,000 because I wanted to retire," Reid said. "Well, I'm still here. I just got re-elected. I have never taken a freakin' dime. The only thing I've ever gotten from Darrel Carey is a plaque."

Reid told KTVU he's hiring a lawyer and he believes a full investigation will clear his name.

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