LACERA Fraudster Charged With Grand Theft, Conflict of Interest

Carmelo Marquez is accused of awarding $120,000 worth of IT contracts from the Los Angeles County Employees Retirement Association to a company he owned.

Hand holding credit card with mousetrap. Contactless payment security, phishing and skimming concept. Vector illustration.

Carmelo Marquez, the former interim chief security officer of the Los Angeles County Employees Retirement Association, accused by the pension fund of awarding contracts to a company he owned, has been charged with grand theft and conflict of interest.

In a statement dated June 4, Los Angeles County District Attorney Nathan Hochman announced the charges, which include one felony count of grand theft, three felony counts of conflict of interest and two felony counts of perjury. If convicted as charged, Marquez, who pleaded not guilty, faces up to six years and eight months in state prison.

“Public service is meant to be a position of trust, not a way for people to enrich themselves through fraudulent actions,” Hochman said in a statement. “This is an example of why government employees must sign disclosure forms from the California Fair Political Practices Commission so there is full transparency. Our office will protect the public’s interest and hold those accountable who put their own greed ahead of their obligations to the people they serve.”

In May, LACERA filed a complaint, Los Angeles County Employees Retirement Association v. Carmelo Marquez, SafeSec LLC, alleging that Marquez founded SafeSec LLC, a value-added reseller of software products, and awarded his own firm more than $120,000 in contracts for products, including cybersecurity software.

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In his role as interim chief security officer, Marquez was responsible for LACERA’s IT procurement processes. He departed LACERA in May 2023 but allegedly continued to communicate with LACERA under an alias, Carlos Rodriguez.

Marquez and his attorney could not be reached for comment.

The charges allege that Marquez pocketed nearly $20,000 from his transactions with LACERA. The pension fund is seeking $300,000 in damages.

LACERA manages $81 billion in assets and provides retirement benefits for public employees of Los Angeles County.