Hagerty Consulting was awarded a $10 million contract by Los Angeles to oversee recovery efforts after the Palisades fire. The decision has drawn criticism from local officials who argue that experienced city departments were sidelined, raising concerns about transparency and the efficient use of taxpayer dollars.

On February 9, 2025, Los Angeles Mayor Karen Bass hired Hagerty Consulting, a firm led by former Evanston Mayor Steve Hagerty known for championing DEI and progressive initiatives, to oversee fire recovery efforts following the southern California fires. While the firm’s progressive record—such as establishing equity commissions and reparations funds—aligns with anti-authoritarian, inclusive governance, critics have raised concerns over a lack of public input and transparency about contract details.

Los Angeles has awarded a disaster recovery management contract to Hagerty Consulting, a firm described as 'world-class' at a press conference on February 7, 2025. However, key contract details such as payment amount, funding sources, and provisions for additional payments remain undisclosed, and there are emerging concerns regarding employee fraud within the firm.

Former disaster recovery consultants at Hagerty Consulting, hired to support the NYC Hurricane Sandy relief efforts, pleaded guilty to orchestrating fraudulent schemes that diverted relief funds. The schemes, dating back to work on the Sandy Project, involved fabricating reimbursement claims and false documentation, undermining public trust and disaster recovery efforts.

Former consultants at Hagerty Consulting pleaded guilty to defrauding New York City of Hurricane Sandy relief funds in 2022 and 2023 by submitting false lodging reimbursement claims and providing misleading information. Despite these serious breaches of trust, the firm secured a Los Angeles wildfire recovery contract through a closed process, raising concerns about ethical business practices and transparency in public contracting.