Exclusive | LA sheriff’s dept probes its ties to $43M Wall Street swindler — after admitting it didn’t know his past

The Los Angeles County Sheriff’s Department is probing its ties to a convicted Wall Street swindler — after admitting it had no idea the wealthy philanthropist served federal prison time for a $43 million embezzlement, The Post has learned.

Reps for Sheriff Robert Luna acknowledged that the agency “was not aware” of Daniel L. Gordon’s criminal and financial history, despite its years-long partnership with his charity. Gordon was sentenced to 3 1/2 years in prison for swiping $43 million from Merrill Lynch and owes New York nearly $60 million in unpaid taxes.

The department is now assessing its relationship with Gordon Philanthropies and “reaching out to former personnel” to gather background information, officials said.

Gordon also agreed to a lifetime Securities and Exchange Commission ban in 2003 from serving as an officer or director of a public company to settle charges involving the Merrill Lynch theft and other alleged misconduct.

Los Angeles County has the largest sheriff’s department in the country, with roughly 17,000 staff who help police 42 cities and run the nation’s biggest jail system, according to its website.

Yet Luna’s department partnered with Gordon’s charity on programs at its jails and initiatives to provide safety equipment for deputies, while Gordon appeared alongside senior law enforcement officials in photographs promoting his charitable work.

Gordon’s foundation, Gordon Philanthropies, has posted numerous photographs of him alongside law enforcement officials, including Luna and uniformed deputies.

In one photo opportunity, Gordon posed during a ribbon-cutting for a children’s library at the Men’s Central Jail visiting center.

The department’s partnership with Gordon Philanthropies went well beyond donating books.

Gordon Philanthropies backed initiatives focused on “improving custody programs for incarcerated individuals, promoting employee wellness, and increasing the availability of fire safety bags for deputy personnel,” a department spokesperson said.

The department is now examining the relationship following The Post’s inquiries.

“The Department is assessing the partnership,” a spokesperson said in a follow-up statement Friday, confirming the ties stretched back “several years.”

“The Department is working to gather additional background and historical information, including reaching out to former personnel who may have relevant knowledge. The review is ongoing,” the agency added.

The review comes just four days before Tuesday’s election, when Luna faces former Sheriff Alex Villanueva, whom he defeated in 2022.

The department did not say when the partnership began or who originally approved it. But Luna himself participated in the September 2023 opening of a children’s library at Men’s Central Jail funded by Gordon’s charity.

LASD rules governing officially affiliated nonprofit support groups require approval, disclosure of board members, and sign-offs from senior officials.

The published rules do not expressly require criminal background checks of charitable donors. They also say the department “must maintain control of its image and reputation” in such partnerships.

The department insisted it has “policies and procedures in place to ensure our partnerships with outside organizations are conducted lawfully, appropriately, and in accordance with our Department standards.”

Officials added that “all individuals granted access to custody facilities are subject to security screenings, must comply with facility rules and regulations, and are escorted by Department personnel while inside our jails.”

The agency also left open the possibility of cutting ties with Gordon’s charity, stating it “will continue to review its processes and evaluate any information to ensure our partnerships remain consistent with Department policies.”

The sheriff’s office did not respond to further questions about whether Gordon himself was subjected to a criminal background check, how the partnership was approved, or what else his tax-exempt group provided to the department.

The California Department of Corrections and Rehabilitation (CDCR) did not respond to multiple requests for comment.

The state prison agency previously celebrated partnerships with Gordon Philanthropies to open educational centers at fire camps — including Malibu Conservation Camp and Puerta La Cruz — for incarcerated women firefighters.

Gordon’s charitable activities have helped establish a new public profile in California, even as he faces a substantial unpaid tax debt and fresh allegations of financial misconduct.

The Post revealed earlier this month that Gordon owes New York State $59.1 million in unpaid taxes, making him one of the Empire State’s biggest tax debtors, according to official warrant dockets.

Public records show Gordon admitted under oath in 2013 that he owed more than $34 million to state tax collectors.

Albany designated him New York’s No. 1 tax delinquent in 2016 when his arrears hit $25.1 million. The bill is linked to his Merrill Lynch crimes because ill-gotten gains are taxable income.

Gordon has meanwhile been living in a $5 million estate in Rancho Mirage, Calif., while promoting his philanthropic work.

His charitable activities have also drawn praise from California Gov. Gavin Newsom.

Newsom issued a personal commendation to Gordon Philanthropies in November 2024.

The letter, displayed prominently by the nonprofit, was addressed to “Daniel” and featured a handwritten note from Newsom reading, “Thank you!”

Newsom’s office has not responded to The Post’s repeated requests for comment about Gordon’s criminal past and unpaid taxes.

Meanwhile, Gordon’s financial dealings have landed back in federal court, where a civil lawsuit pending in Manhattan raises fresh allegations of misconduct.

The complaint alleges Gordon secretly controlled Sagaliam Acquisition Corp., a Nasdaq-listed SPAC that raised $115 million from investors, in violation of his lifetime SEC ban.

Court filings allege Gordon operated behind the scenes, using Alan Ginsburg, an 87-year-old Florida real estate developer and political donor, as a front man.

According to court exhibits, law firm Mayer Brown signed an engagement agreement identifying Gordon as an authorized representative permitted to give instructions in connection with its work for Sagaliam.

Lawyers for Ginsburg deny wrongdoing, and the case remains pending. Gordon and representatives for Gordon Philanthropies did not return requests for comment.