Berkeley City Councilman Profited on Home Loan to Police Chief

The council approved a $500,000 home loan for police Chief Michael Meehan back in November 2009.

Councilman Lawrence Capitelli is also a partner at Red Oak Realty would go on to split a $30,000 commission when the chief closed on a $1.185 million home in 2010.

When the issue came to light this past week, Capitelli claims no wrongdoing, saying “I had no clue I'd be representing him. He came to me months later." He also added that city attorneys told him that representing Meehan would not constitute conflict of interest because there was no representation agreement prior to the vote on the loan.

This has not stopped some from criticizing the whole situation as fellow Berkeley City Councilman called it “slimy and unethical.” The Howard Jarvis Taxpayer Association President Jon Coupal called Capitelli’s justification “baloney” and a “clear conflict of interest.”

Capitelli has been considering running for Mayor next year.

The complete story on the Berkeley Police Chief’s home loan can be found here.