D.C. Councilman Jim Graham’s top aide pocketed cash-stuffed envelopes and other gifts in return for steering taxicab legislation through his boss’s office, law enforcement officials alleged Thursday.
Ted Giovanny Loza, 44, was arrested at his Columbia Heights home Thursday morning, shortly before FBI agents raided his office at the John A. Wilson Building. Loza, the Ward 1 councilman’s chief of staff, tinyurl.com/loza-indictment, to which he pleaded not guilty during a late afternoon arraignment.
He was released without having to post bail. Graham immediately placed him on administrative leave with pay.
Loza is accused in the 10-page indictment of accepting “a stream of things of value,” including $1,500 in cash as well as trips, in exchange for “promoting legislation favorable” to the interests of two individuals in the taxicab industry, identified by authorities only as “Individual No. 1” and “Individual No. 2.”
“When all the facts come out and the entire context of the relationship is understood, you will see that Mr. Loza is not guilty,” said Pleasant S. Brodnax III, Loza’s attorney.
Graham has oversight of the taxicab industry in the District. He vehemently denied any wrongdoing.
“Absolutely I have had no engagement whatsoever with any illegal or unethical activities,” the council member said.
On June 19, the indictment alleges, Loza accepted a $1,000 “Father’s Day” gift from Individual No. 1, asking at the time, “Do I just take it?” Ten days later, Graham met with the yet unnamed individual to discuss taxicab legislation, the councilman confirmed.
Graham introduced legislation on June 30 to cap the number of cabs allowed on D.C. streets through a medallion system, like ones used in New York City and Chicago. The bill provides, as Individual No. 1 sought, that the owners of low-emission taxis receive a free medallion, while other drivers must purchase them. The measure is the subject of a scheduled Oct. 1 public hearing.
Loza accepted an additional $500 in cash during a second meeting with Individual No. 1 on July 10, the indictment stated.
“You know I need it,” Loza said at the time, according to the indictment. “That’s why I take it, you know.”
Multiple sources familiar with the ongoing investigation told The Examiner that Graham’s staff had been meeting through the summer with an official from Medallion Financial, a New York company that loans money to cabbies for medallions. A top law enforcement official said the company was linked to the bribery probe.
A company spokeswoman did not respond to requests for comment.
Graham said he was told by Loza “recently” of the investigation. The three-term council member said Loza had “absolutely no impact” on the medallion bill, that he was “someone I’ve grown to trust and have confidence in.”
Council Chairman Vincent Gray said in a statement that he would “let the justice process take its course,” while meeting with Graham to determine how the investigation might affect the Ward 1 councilman’s work.
