LA Not Done With Insomniac

The commission asked a California appellate court panel Dec. 9 to revive its suit against the two promoters, claiming the judge in the original case erred in ruling the contracts between the promoters and signed by former commission event manager Todd DeStefano was legitimate.

The commission alleges Insomniac and Go Ventures funneled funds to DeStefano in exchange for reduced venue fees and other perks in order to stage EDC at the L.A. Coliseum from 2001-10. Electric Daisy was moved to Las Vegas after that, in the wake of charges of lax security and the drug-related death of a 15-year-old concertgoer at the 2010 EDC.

The Commission and co-plaintiff, the Los Angeles Memorial Coliseum Association, charged that public funds were misappropriated through use of a public venue, and the judge erred in barring the Commission from pursuing claims under the False Claims Act with private counsel, and under a state law forbidding public officials from being financially interested in any contracts made in their official capacities, according to Law360.

In a 2013 ruling, Los Angeles Superior Court Judge Terry Green entered judgment in favor of the promoters, and owners Pasquale Rotella and Reza Gerami, saying the Commission failed to adequately prove the claims made in its 2011 lawsuit. That suit was filed one month after the Los Angeles Times published a story saying former Coliseum GM Patrick Lynch had allowed DeStefano to “moonlight” for an event producer, setting off corruption allegations. Insomniac and Go Ventures attorneys argue that the case is about moonlighting, not bribery.