Oakland Ends Plan to Hire Security Firm

By BOBBY WHITE

http://online.wsj.com/article/SB124044780262645939.html#

The city of Oakland, Calif., dropped its plan to hire security firm 
International Services Inc. to patrol high-crime districts after the 
company's founder and two other executives were charged with fraud.

Ousama Karawia, founder of the Torrance, Calif., company, and two of 
its vice presidents were accused last week by the Los Angeles 
District Attorney's office of defrauding the state of California out 
of more than $9 million in workers compensation. The suspects were 
arrested last week after a three month investigation, said Jane 
Robinson, a spokeswoman for the district attorney's office.

All three have pleaded not guilty. An International Services 
spokeswoman declined to comment on the charges.

The City Council agreed last month to hire International Services 
even as Oakland deals with a record $80 million budget deficit. The 
city of 400,000 across the Bay Bridge from San Francisco has turned 
increasingly to nontraditional measures in an attempt to reduce crime.

Ignacio De La Fuente, a city council member who led the drive to hire 
armed guards, said he will push to retain another security service. 
"There is still a very serious need for security in some of our more 
crime-plagued areas," he said. Before selecting Mr. Karawia's 
company, Mr. De La Fuente said, he and representatives of Oakland's 
police department interviewed security candidates and found nothing 
out of the ordinary.

Mayor Ron Dellums opposes hiring a private firm and prefers to have 
police patrol the district.

Write to Bobby White at [email protected]

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