Four former Beaumont officials who have been accused of embezzling a fortune from the city have a combined $14.6 million spread across 47 bank accounts, according to Riverside County court documents.
The accounts, which have all been frozen by law enforcement, break down like this:
- David William Dillon, former economic development director, has $6.1 million in 11 accounts;
- Alan Kapanicas, former city manager, has $1.7 million in four accounts;
- Ernest Egger, former city planner, has $3.7 million in six accounts;
- And Deepak Moorjani, the former public works director, has $3 million in 23 accounts.
Court documents have previously revealed that these suspects also own multiple homes and land parcels throughout California. But the accumulation of wealth in the frozen bank accounts offers the best hope yet that Beaumont could recover some of its missing millions if the suspects are convicted.
“Where there is smoke there is fire,” said Beaumont Mayor Mike Lara, who didn’t know about the bank account balances until contacted by The Desert Sun.
Lara said he was initially stunned, then angry, to learn there was so much money in the suspects’ bank accounts. But news ultimately left him hopeful.
“I hope it all works out so that we can get some of that money back. It would go a long way to solving some of the fiscal issues we are dealing with.”
Prosecutors have said previously they will strive to recover as much money as possible for Beaumont, but that the task will be difficult.
“I don’t know what the chances are. Probably not good,” said District Attorney Mike Hestrin in May. “But we are going to work hard to get restitution.”
Seven Beaumont officials were arrested in May on allegations that they puppeteered the city for decades, stealing as much as $43 million through pocketed fees and shady loans, according to prosecutors.
The alleged corruption began in the 1990s, when the city hired an outside firm, Urban Logic Consultants. Three of the firm’s employees — Dillon, Egger and Moorjani — were put in charge of city planning, development and public works. From these positions, the suspects advised the city to issue new bonds while making payments to their own company with money from the bond sales.
The scheme grew and evolved over the next three decades, expanding to development fees and interest-free loans for businesses and employees, prosecutors said. The FBI raided Beaumont City Hall and the office of Urban Logic Consultants last year, leading to the arrests in May.
The other arrested suspects were Joseph Sandy Aklufi, the former city attorney, William Aylward, the former finance director and Frank Coe; the former police chief.
All of the suspects have pleaded not guilty.
Public Safety Reporter Brett Kelman can be reached at 760 778 4642 or br**********@de*******.com. You can follow him on Twitter at TDSbrettkelman.