The seams have unraveled for four Southern California men arrested on charges of embezzling more than $8 million from CM Laundry, a Gardena launderer owned by denim maker Citizens of Humanity.
Federal and local officials arrested the men last week.
They are accused of sending CM fraudulent invoices listing fake and inflated charges from May 2007 to about September 2013.
CM provided finishing services for Huntington Park’s Citizens of Humanity, which has owned the industrial launderer since 2007.
One of the defendants is former CM President Luis Mariano Rodriguez.
U.S. attorney Eileen M. Decker said in a statement that Rodriguez orchestrated a long-running operation against his former employer.
“The scheme involved other defendants who also allegedly stole proceeds generated through fraudulently issued bills,” Decker said.
The three other defendants owned companies that submitted fake invoices to CM, according to the complaint:
Antonio Anguiano, owner of FI Products, sold personal protective equipment and billed CM for more than $3.6 million before transferring about $2.3 million to Rodriguez and his shell company, Genesis Electronics.
Terry Mink, owner of hardware firm H&T Industrial Products, billed the launderer about $5 million and transferred about $3.6 million to Rodriguez.
Real estate agent Rene Bautista set up K&R Industrial Supplies at the behest of Rodriguez to bill CM for about $640,000. He then transferred about $493,000 back to Rodriguez.
Rodriguez is charged with three counts of mail fraud and the other three are charged with one count. If convicted, they could face a statutory maximum of 20 years in federal prison for each count.
Diving In
Downtown L.A. clothing label For Love and Lemons helped usher in a new kind of lingerie featuring elaborate lace details and floral prints.
The brand is now looking to take the same design approach with the launch of its first swimwear line, Swim, which debuted last month.
Laura Hall, For Love and Lemons’ designer and co-founder, said the motivation to jump into swimwear came from retailers, who wanted a beach-friendly version of its Skivvies lingerie line.
“It was a natural progression with the Skivvies line,” she said. “We had the Skivvies line for two or three years and stores were begging us to do swim.”
Hall said the company held off as it wanted to spend time researching the proper fabrics and ensure the look would fit the brand’s style.
“All of our clothes are pretty special so we wanted to stay true to that feeling in the swim collection,” she said. “We’re not just doing basics. We wanted extra touches of lace (and) to make sure it was chlorine and swim tested.”
The collection was inspired by the French Riviera and includes 16 bikinis and one-piece suits as well as six cover-ups.
Prices range from $162 to $337 for bikini sets while cover-ups go for between $252 and $355.
Hall said the company focused on the fit and using the waistline in new and different ways to differentiate itself from other brands.
She acknowledged that swimwear is a competitive space but said customers and retailers have responded with excitement.
“There’s competition in any space you enter,” she said. “You just have to be confident in the product that you’re putting out there.”
For Love and Lemons will launch its second collection in April featuring new colors and beach accessories.
Revolving Doors
Rapper Aubrey “Drake” Graham opened his first U.S. flagship store, October’s Very Own (OVO), at 130 N. La Brea Ave. in Los Angeles last month. Some die-hard fans waited in line for more than 12 hours opening day. The 2,400-square-foot streetwear boutique is the second OVO location after the store’s launch in Toronto two years ago. … Luxury Italian label Battistoni, worn in the past by Marlon Brando and Francis Ford Coppola, will be opening its first U.S. store in Beverly Hills this month. It was previously only available in the states at Barneys New York. … Headwear brand Official opened its first location on Melrose Avenue last week. The 800-square-foot streetwear boutique features apparel and accessories. … Marc by Marc Jacobs closed its store on Melrose this month. … New York yoga studio Y7, known for its candle-lit, mirrorless rooms and hip-hop music, opened its first West Coast location on Melrose this month. … Soul Cycle opened a branch last week at Culver City’s new shopping center Platform, which is set to open this spring in the Hayden Tract neighborhood. … Kinfolk is expected to open in downtown L.A.’s Arts District this year. A date has not yet been announced. The New York retailer originally had plans to open its shop in downtown’s Eastern Columbia building in 2014 but pushed back the opening. The 6,000-square-foot space will also feature a restaurant and coffee bar.
Staff reporter Subrina Hudson can be reached at [email protected] or (323) 549-5225, ext. 251
