Meanwhile, on the left coast…

While lots of attention has been focused on former New York City Police Commissioner Bernard Kerik lately and some of his business dealings, former Los Angeles Police Chief Daryl Gates has his own sweetheart business deal. Gates, 78, was appointed director of Global Epoint (GEPT) in November, after serving as a company consultant since July 2003. But being a director doesn’t mean that Gates plans to give up the lucrative consulting deal. In fact, the company has continued to throw more money at Gates.

When he first started as a consultant, the company paid him $5,000 a month and quickly raised it to $10,000 a month by November 2003. He also received an option to purchase $60,000 shares at $6.47 a share — options that are now underwater. Last month, when that one year contract expired, the company agreed to up his fee to $13,000 a month and give him another 60,000 options that are a lot more valuable because they enabled him to purchase the stock at $2.82 a share. The options, which given the stock’s current price of $5.35 a share are much more valuable, vest in equal installments over the next 12 months.