Free Republic

SACRAMENTO — A Santa Monica advertising firm that produced a tax-funded $23-million ad program touting the benefits of preschool settled a suit after one of its subcontractors made $2.5 million in payments, the firms have announced. GMMB Inc. alleged in a suit filed in Los Angeles County Superior Court in April that the subcontractor, Durazo Communications, failed to pay some television stations that aired the commercials, which were funded by the First 5 California Children and Families Commission. (snip) The suit attracted attention when Hector Ramirez, the commission's chairman, called on the Los Angeles Police Department and the state Bureau...

State contractor sues subcontractor; police and auditor notified. Sacramento -- Nearly $3 million in public money earmarked for pro-preschool commercials is missing, marking a weird twist in the controversy surrounding a move by a state commission headed until recently by director Rob Reiner to air the commercials while Reiner was working to get a preschool initiative on the ballot. The new head of the First 5 California Children and Families Commission and the commission's lead advertising firm acknowledged Thursday that $2.8 million owed to Spanish-language television stations for commercials aired last fall is unaccounted for. The firm, GMMB Inc., filed...

California's First 5 commission is investigating the apparent disappearance of nearly $3 million in tax money owed to television stations that aired its recent preschool ads, the commission chairman said today. Hector Ramirez, First 5 California Children and Families Commission chairman, also called on the Los Angeles Police Department and California Bureau of State Audits to find out what became of $2.8 million given to the Los Angeles public relations and advertising firm Durazo Communications. The firm was supposed to use the money to pay the TV stations. "What we're going to be doing is just conducting a full investigation...