Part 171: A “tipping point” in Los Angeles – Shadows of Rick Caruso and SteadfastLA

Published May 12, 2025.

May 12, 2025

Mayor Karen Bass, JJ Redick, and Rick Caruso announced a plan to rebuild a city-owned recreation center damaged by Jan. 7 fire. (Office of Mayor Karen Bass).

Please support my work with your subscription, or for direct support, use Venmo, CashApp, PayPal, or Zelle using zachary.b.ellison@gmail.com

By Zachary Ellison, Independent Journalist

Billionaire real estate developer and former Los Angeles mayoral candidate Rick Caruso pointedly argues in a new self-published May 7 “Op-Ed” on the website of his “civic nonprofit organization,” Steadfast LA, that Los Angeles is at a “tipping point.” Caruso states that Los Angeles “continues to suffer from failing leadership” and that “their rearview mirror approach is like comparing apples to monkey wrenches” in reference to last January’s destructive wildfires. Caruso clearly isn’t backing off from his repeated criticisms of Mayor Karen Bass and other leaders in Angeles just yet.

Citing only one person by name in the piece, former Chief Recovery Officer Steve Soboroff, the august Caruso further assails LA Department of Water and Power Chief Executive Officer and Chief Engineer Janisse Quiñones, stating that she “remains in her position and the city has made no moves to rectify such gross incompetence that directly contributed to families losing everything.” LADWP has denied the allegation amidst a battery of fire lawsuits. Soboroff left his gig after being appointed by Karen Bass last January with some parting shots in a “free-wheeling, 90-minute exit interview” with the Los Angeles Times over what he perceived as marginalization.

Soboroff told Times journalist Julia Wick about the end of his 3-month tenure that the Mayor’s Office hasn’t “asked me to do anything in a month and a half, nothing, zero.” Caruso writes that “the city refuses to offer the public any voice in the hiring process now” to replace Soboroff. Caruso also goes after Hagerty Consulting, arguing that the firm is “not sharing any details about what they’re doing so the public can measure their performance.”

At this point, you have to wonder why Mayor Bass hasn’t simply offered Caruso the job of Chief Recovery Officer, given his vociferous complaining since the outbreak of the fires, to force him to say no. The former political enemies recently made a joint appearance in the Pacific Palisades, so perhaps Rick Caruso, in not naming Karen Bass specifically, is trying to keep the peace at least liminally. Despite much widespread speculation about his political ambitions, the wealthy Caruso has yet to announce a rematch against Bass from a 2022 campaign that all but never ended.

Caruso previously rejected demands for a recall, citing the potential electoral timing of a vote with the June 2026 primary in advance of a November election. Caruso makes a classic argument in conclusion that “tapping the private sector to deliver real results” will change “the paradigm” of “business as usual.” To date, no other serious electoral challenger to Bass has lined up, even as the gubernatorial battle to replace Governor Gavin Newsom has crowded.

Caruso cites a total of 31 permits issued for the Pacific Palisades as proof officials aren’t getting their jobs done. Telling friendly Fox 11 journalist Elex Michaelson in an interview at the Milken Institute’s Global Conference 2025 on May 7 that “we need a bunch of wins, and I don’t care who gets credit for the wins.” After vowing to work with both Bass, the Los Angeles County Board of Supervisors, and Governor Newsom, Caruso then states, “And I’ll also, if need be, if things aren’t getting done, work around them to get things done.” How ominous?

Caruso wants permitting to be done using artificial intelligence and offers a panoply of things he wants done to rebuild the Palisades and Altadena. Michaelson then casually asks him about his political plans, “I know you’re probably not going to tell me right now if you’re running for mayor or governor, although you could if you want to,” drawing laughter from Caruso. In response to a further question about what he’s told by others, Caruso volunteers, “I get both, I get both, which I’m very honored by,” biting his lip, before offering, “As I’ve told you, at the end of summer, I’m going to make a decision on that, on what I’m going to do,” before pivoting back to the wildfires.

The mogul then smiles before reiterating that “I’m all about Steadfast; that’s what I’m going to focus my time on.” Perhaps if he had some extra time, Caruso, who previously served as Chairman of the Board of Trustees at the University of Southern California from 2018 to 2022, where he remains on the board since being appointed in 2007, might want to take some time to read the latest from Annenberg Media. The student-operated publication published a piece by journalist Michael Reo labeled “ANALYSIS” citing a nearly 5-fold increase in bond obligations since 2016, that “USC continues to grow its debt beyond $3.2 billion and has been expanding its managerial staff at extraordinary rates.” Caruso is also an alumnus of the institution.

Moreover, he was instrumental in leading its response to multiple scandals, including the costly settlements made to victims of deceased gynecologist George Tyndall after promising a law firm investigation that was never released. Ironically, Caruso argues about LA’s wildfire response in his Steadfast LA piece that “This veil of secrecy extends to the Chief Recovery Officer position.” Despite repeated demands that the investigation completed by O’Melveny & Meyers be released from victims and Mayor Bass alike during her successful campaign, Caruso has refused to release the report. Tyndall died awaiting trial on criminal charges in October 2023, more than 5 years after the Los Angeles Times exposed his abuse and USC’s failure to remedy the situation, including paying a sizable settlement to Tyndall in terminating him.

USC defended its shaky finances to Annenberg Media in a statement from Chief Financial Officer Erik Brink stating that “USC has been making changes since 2017.” USC further argued that its extraordinary borrowing is necessary for its growth. USC paid out two settlements totaling $215 million and $852 million, of which at least $400 million was funded through such bond obligations. Formerly the university’s controller, Brink succeeded former CFO Jim Staten following his semi-retirement in January 2023, remaining on as a Strategic Advisor for another 7 months. USC’s finances are closely monitored by both the President’s and Provost’s offices, with the Board of Trustees under Chairwoman Suzanne Norah Johnson having final responsibility. USC has embarked on a series of cuts and a hiring freeze in the last year.

Current USC President Carol Folt is set to depart on June 30, with General Counsel Beong Soo-Kim set to succeed her as interim president. On May 9, BOT search committee chairs Carmen Nava and Mark Stevens sent an update noting the attendance by more than 500 people at 20 listening sessions, stating that “Leadership transitions provide an opportunity for all of us to come together, affirm our commitment to our mission, and align around our vision for the future of USC.”

In announcing the Tyndall settlement in 2021, Caruso wrote as chair about his ascendancy that, “The board immediately took swift action to restore trust, accountability, and faith in our university.” Unlike Caruso, who made such statements with frequency, Johnson has shied away from the limelight, making no formal statements except for one on Folt’s departure.

Rick Caruso isn’t on the Search Committee for USC’s new president, but he is on its Executive Committee. Under Caruso’s leadership, the Board set out ambitious goals for self-reform, with Nava serving as Chair of the Special Committee on Governance Reform announced in 2019.

These promised changes largely revolved around reducing the size of the board to 35 voting members (USC currently has 37 voting members, 38 life trustees, and 6 honorary trustees). USC also committed to “a future Board composition that reflects the diversity of the USC community,” term and age limits, committee restructuring, and other limited measures. The moves were part and parcel of Caruso’s response to the Tyndall scandal. Johnson also served as a co-chair of the Special Committee on Governance Reform. On August 7, 2018, Caruso wrote to the USC community about the changes, noting, “Our light has dimmed recently.”

The corporate leadership style implemented by Caruso at USC and now, presumably, with Steadfast LA is inarguably intended to bolster image as well as mission. After the January wildfires, Caruso was facing increasing criticism over his usage of private firefighters to save his own properties and also over his vociferousness from the Los Angeles Police Protective League, which has already stated its intention to support Bass in 2026. On January 8, in a still unexplained reversal, the union posted on X, formerly known as Twitter, that Caruso “should stop politicizing these tragic fires and stop attacking @MayorOfLA Karen Bass.” Critics have largely interpreted the switch from Bass to Caruso as a result of the mayor’s generosity toward their budget and the appointment of LAPD Chief Jim McDonnell, viewed as a friendly selection.

Rick Caruso now faces the loss of support from another public safety union, following the suspension of Freddy Escobar as President of the United Firefighters of Los Angeles City following an internal audit that found poor accounting and overtime practices at best. The news came after increasingly negative headlines from the Los Angeles Times by journalists Alene Tchekmedyian and Paul Pringle, who exposed the Tyndall scandal at USC in 2018 after a battle with his editors.

Escobar has maintained that there’s no wrongdoing. He recently was interviewed by Times columnist Gustavo Arellano, who described how Escobar “was in my face during a Rick Caruso campaign stop in 2022, complaining about what he felt was my overly negative coverage of the mega-developer’s run for mayor.” Caruso isn’t the only politician that Escobar has backed. Last year, Escobar made a $1,000 donation to the 2026 re-election campaign of Councilmember Traci Park. Escobar has been the union president since 2018.

Caruso hasn’t spoken out on the UFLAC matter to date, nor in response to the LAPPL’s announcement. Caruso, like Escobar, criticized Karen Bass’s termination of former LAFD Chief Crowley even though the Times investigation into the failed LAFD response to the Palisades Fire has been quite suggestive that there was significant negligence, stating, “We need real leadership, not more blame passing.” Whether Caruso’s able to mobilize the same degree of support that he had in 2022 just might be the big question mark on his political future. People aren’t happy with Karen Bass, but does that mean they want Caruso in charge?

If his leadership at USC as a more recent example was a bellwether alongside his past service as President of the boards at both the LADWP and LAPD, then Caruso is clearly past the learning phase with Steadfast LA. Perhaps the most high-profile accomplishments of Steadfast LA haVE been securing the donation of 80-100 prefabricated homes and the reconstruction of a recreation center. Caruso, in his interview with Michaelson, suggested that more projects were in the works. Were Caruso to decide to pass on a re-run of 2022 in 2026, many of his supporters would be undoubtedly disappointed. After all, Rick Caruso bills himself as a man who delivers the goods and as being high above any possible corruption—squeaky clean.

A devout Catholic, with his name on the Catholic Center at USC, Rick Caruso exuberantly endorsed the selection of Robert Prevost as Pope, writing on X that “Never in my lifetime would I think this possible.” Whether another run at elected office is possible for Caruso isn’t so much the question as whether it would be successful. Wealthy and powerful people don’t often take kindly to losing, much less twice on the same goal. The last time Caruso took a big loss before 2022 was in 2016 in Carlsbad over his proposed shopping mall development. Defeated, The Real Deal went as far as headlining that he needed “to rehabilitate his image” and quoting Caruso confessing that “What happened there is we didn’t follow our formula,” vowing to “stick to what works.”

The always immaculately dressed Caruso towers over Los Angeles politics in a way that no one else can dream of, even those wealthier than him. His mystique is built on the idea of success, not just liminally, but as best-in-class. The New York Times went as far recently in its headline as to suggest that he is the “Shadow Mayor of Los Angeles.” The April 5 story by Adam Nagourney and Shawn Hubler quoted Zach Seidl, spokesman for Mayor Karen Bass, saying that, “At a time of tragic loss of life and property, it’s unfortunate that he would choose to be undermining.” Caruso’s response was to declare, “You should interpret it as the father that heard that his daughter’s house just burned out and all of her dreams of raising a family there went down with it. Caruso added with a desired finality, “And so I just reject this notion of there was any politics to it. It was a very personal thing.”

Power politics in Los Angeles have never been the same since the mogul entered the picture. Had he not, 2022 would have likely been a showdown between Karen Bass and third-place finisher, disgraced former City Councilmember Kevin de León. The ersatz Latino political legend declined to endorse in the race, later stating that if the LA Fed Tapes hadn’t been leaked, he would have endorsed Bass.

The controversial recordings made at the Los Angeles County Federation of Labor, AFL-CIO, featured his close friend and also former Councilmember Gil Cedillo alongside him, who openly backed Caruso in a video recording. For what it’s worth, former Council President Nury Martinez was seemingly fearful of Caruso’s potential political power, saying about him plaintively, “Yeah, yeah, yeah,” referencing how Caruso had allegedly sent a helicopter to get influencer Olivia Jade Giannulli off his yacht Invictus in the Bahamas.

Among the few people to speak with the participants of the illegally recorded, leaked October 18, 2021 conversation was former Caruso VP and Chief of Staff to Caruso as Chairman of the Board of USC Trustees Sam Garrison. The son of an insurance executive with a penchant for political donations will seemingly remain as SVP of University Relations after President Carol Folt’s retirement from USC and is among the closest known associates of Caruso and is known to have ties with the LA Fed. Recently, widespread news was made after De León was fined by the Los Angeles City Ethics Commission for failing to abstain from votes in which he had a clear conflict of interest, including in relation to a vote regarding USC’s development in June 2021.

Little mention was made that at the same meeting of the City Ethics Commission, new union President Yvonne Wheeler and the LA Fed itself were also fined for failing to register as lobbyists. About Garrison, Caruso says in his leaked civil case deposition from the Tyndall civil lawsuits, “I wouldn't classify him as a lobbyist. He's a -- senior vice president, I believe is his title, of government relations.” Caruso says that Garrison “did such a good job he was promoted.” The LA Fed didn’t respond to a request for comment about the fines levied against the powerful labor union and its leader, which totaled $10,000, less than KDL’s $18,750.

Wheeler is a close political ally of Karen Bass. Caruso blamed Bass’s camp for the leak in July 2023. Garrison and Wheeler could both be seen last December at the final meeting of the Los Angeles City Council for Kevin de León. It’s worth noting that Caruso made a big play for the Latino vote in 2022. He has also blamed the Democratic establishment for his electoral loss. Interestingly, Steadfast LA doesn’t have a single Latino on its board, nor are unions represented in any way. In announcing the organization, Caruso said, “Steadfast LA is about more than just rebuilding—it’s about creating a model for how government and private industry can work together to solve big problems.” In Los Angeles of all places?

Link: We're At A Tipping Point: City's Response Must Be More Transparent & Accountable

Link: LADWP says it never ran out of water in Pacific Palisades during fire, so why did hydrants run dry?

Link: Steve Soboroff bows out as L.A. fire recovery czar, with some parting shots

Link: Elex Michaelson Interview RE: Rick Caruso

Link: ANALYSIS: USC deliberately escalated ‘structural deficit’

Link: Letter to the Trojan Community from Board of Trustees Chair Rick Caruso

Link: Bass, Allred call on Caruso to 'stop the cover-up' of USC-Tyndall sex abuse scandal, release report

Link: USC Board of Trustees Updates

Link: Message from Rick J. Caruso, USC Board of Trustees Chair and Carmen Nava, Special Committee on Governance Reform Chair, on the changes to the governance structure of USC’s Board of Trustees

Link: Message from Board of Trustees Chairman Rick J. Caruso

Link: Los Angeles Police Protective League Tweet RE: Rick Caruso

Link: A Times investigation: LAFD union head made $540,000 in a year, with huge overtime payouts