PR Execs Sentenced in Los Angeles Fraud

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The case of PR firm Fleishman-Hillard overcharging the city of Los Angeles for consulting services continues. Two former executives at the firm's Los Angeles office, Douglas Dowie and John Stodder, were sentenced to 42 months and 15 months in federal prison, respectively. "In 2004, the firm paid the city $6 million to settle a lawsuit claiming overbilling, mainly to the Department of Water and Power," reports John Spano. Dowie, who the prosecutor called "the big fish" in the overbilling scheme, maintained his innocence and said he would appeal. Stodder "was contrite, accepting responsibility." While one juror said the evidence "indicated there were guilty parties higher up the ladder than Dowie or Stodder," no charges have been brought against their superiors or the PR firm itself. Yet, "the scandal rocked Los Angeles City Hall," having "spurred ethics reform and is credited with helping persuade voters to elect Antonio Villaraigosa mayor." Dowie was a confidant of former mayor James Hahn.