PHOENIX — Despite a California criminal conviction, Tempe officials say they are standing behind the point man for a multimillion-dollar hotel project proposed for Tempe Town Lake.
Brad Gorman, chief executive officer of Laguna Pacific Cos., was convicted in 1997 of felony grand theft from a business partner in connection with a $20 million real estate deal, according to documents and interviews.
Gorman said the criminal matter was "based on false accusations." Citing privacy concerns, he declined to comment further or release any court documents related to the case, noting that the California judge later expunged his record.
"I think it's put to rest," Gorman said. "It is what it is, and it's a done deal."
Gorman was sentenced to 180 days of county jail time or electronic monitoring and three years of probation. Other records show he paid $90,000 in restitution.
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His attorney, Anthony Glassman, said Gorman did not go to jail but served 180 days of probation while wearing a monitoring bracelet. No other court documents or details of the case were available because of the court seal.
Gorman's firm is the lead developer of a proposed project of lofts, four-star hotel rooms, shops and restaurants on the shores of the lake. A team led by Gorman agreed to pay $42.5 million for 27 acres on Tempe's lakefront.
Gorman and another Laguna Pacific official, Michael Barker, will be the lead negotiators for Pier 202 LLC, a group of home builders, retail developers and consultants, as they finalize a development agreement with Tempe as early as June.
"I am comfortable with the team of people involved with this project," said Tempe Mayor Hugh Hallman. "We have made sure that the city will not be put at risk for this project."
In June 2003, Gorman was removed from a $107 million high school construction project after Los Angeles Unified School District officials found out about his conviction.
"It's pretty simple," said Bob Williams, a Los Angeles Unified School District deputy inspector general. "Anyone who's convicted of a felony, we'd rather not do business with."
But Glassman said Gorman is not a felon because his record was cleared. Expungement is a relatively common California court procedure that allows criminal defendants under some circumstances to clear their record after a conviction to get a fresh start.
Arizona has no expungement statute.
Expunging a case does not mean the defendant is innocent, said Gerald Uelman, a Santa Clara University law professor.
Expungement does not erase the fact that there was a conviction, the professor said. "It's really a finding of rehabilitation, in effect."
As negotiations continue, Gorman and his attorney have downplayed Gorman's role in the Tempe project, describing him as a minor player.
"The bottom line is, I'm not even less than 1 percent of a percent of the project, other than to coordinate and help out a huge 900-pound gorilla firm," Gorman said.
Gorman's name, though, is the one that appears throughout Pier 202's glossy, 30-page pitch to the city.
In the proposal submitted May 16, 2005, Gorman was listed as "managing partner" and the "primary point of contact throughout all competition phases and contractual negotiations."
As the lead negotiator, his signature appears on the proposal's cover letter.
Gorman's expunged conviction did not come up during the city's initial background research for the project.
