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Caruso Under Scrutiny: Ethics Investigations Intensify

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  Published in Politics and Government on Monday, February 9th 2026 at 11:40 GMT by Politico
      Locales: California, UNITED STATES

Los Angeles, CA - February 9th, 2026 - As the mayoral race in Los Angeles tightens, challenger Rick Caruso is finding himself increasingly under the microscope. Renewed investigations into his business practices, specifically surrounding the development of projects like the Americana at Brand and other prominent shopping centers across Southern California, are dominating the headlines and raising serious questions about potential conflicts of interest. While incumbent Mayor Karen Bass maintains a slender lead in recent polls, the controversy surrounding Caruso's past dealings threatens to significantly shift the dynamics of the election.

For weeks, whispers of potential impropriety have circulated around Caruso Affiliated, the developer founded by the billionaire businessman. Now, those whispers are solidifying into formal inquiries led by the Los Angeles Ethics Commission and various city officials. The core of the investigation focuses on whether Caruso leveraged his position on numerous city committees to secure preferential treatment and expedite approvals for his developments. The Los Angeles Times' initial reporting detailed several instances where Caruso's company benefited from approvals seemingly coinciding with his involvement in relevant city processes - a correlation raising eyebrows amongst both political opponents and ethics watchdogs.

These aren't simply questions of bureaucratic speed. The allegations suggest a potential pattern of influence peddling, where Caruso's role in city governance may have directly benefitted his private business ventures. The Americana at Brand, a sprawling outdoor shopping mall in Glendale (a case study frequently cited by investigators), and similar developments across the region, routinely required zoning changes, permits, and other approvals from city agencies. Critics argue that Caruso's simultaneous role as a key decision-maker on committees overseeing these very agencies creates an undeniable conflict.

"It's not necessarily about whether a deal should have been approved," explains Dr. Eleanor Vance, Professor of Political Science at UCLA. "It's about the appearance of impropriety. Did the public have confidence that these decisions were made solely on their merits, or were they influenced by the financial interests of a powerful individual? That perception is crucial for maintaining trust in government."

Caruso's campaign has vehemently denied any wrongdoing, characterizing the investigations as politically motivated "attacks" orchestrated by the Bass campaign. A spokesperson for Caruso Affiliated released a statement earlier today asserting that all developments underwent rigorous scrutiny and adhered to all applicable regulations. They maintain that Caruso's involvement in city committees was aimed at fostering economic growth and improving the quality of life for Angelenos.

However, the Bass campaign isn't backing down. They've doubled down on their message of transparency and accountability, highlighting the importance of ethical leadership in City Hall. In a recent campaign speech, Mayor Bass stated, "The people of Los Angeles deserve a mayor who prioritizes their interests, not personal gain. We need leaders who are committed to serving the public trust, and that requires complete transparency and a willingness to be held accountable."

Beyond the ethical considerations, the timing of these investigations is particularly sensitive. Caruso has been attempting to redefine the mayoral race, shifting the focus away from long-standing issues like homelessness and traffic, and towards public safety and affordability. He's portrayed himself as a pragmatic businessman who can "get things done," leveraging his success in the private sector to address the city's most pressing challenges. The controversy now threatens to undermine that carefully constructed narrative.

The Ethics Commission's investigation has broad authority. If violations are found, Caruso and his company could face substantial fines, and potentially, more serious legal consequences. The findings could also have a chilling effect on future development projects and raise broader questions about the influence of money in local politics. The Commission is expected to release a preliminary report in the coming weeks, potentially setting the stage for a contentious final stretch in the mayoral campaign. The public awaits the results with bated breath, as the future direction of Los Angeles hangs in the balance. Furthermore, the investigations may also prompt a broader review of campaign finance laws and ethics regulations within the city government to prevent similar situations from arising in the future.