Beaumont’s 5 Year Anniversary of Audits
After 5 Years and Multiple State & Federal Investigations; the New Beaumont is more Corrupt than the Old Beaumont
On August 18, 2012 a Public Records Request was submitted to the City of Beaumont for the General Ledger and Bank Statements from July 1, 2011 to Present.
I started auditing government agencies about six months earlier and wrote an article titled ‘The Reality of RDA’ that was published State-wide in ‘The Patch’.
Judy Bingham contacted me after reading the RDA Article in the Beaumont Patch. Judy had many stories about Beaumont’s RDA that didn’t make sense for one reason; Beaumont didn’t have any RDA Bonds, they were all Mello Roos.
So I tell Judy to pull the General Ledger and Bank Statements. Judy sent me the documents that I requested and also included additional documents on Urban Logic, Beaumont Electric, and other instances of corruption that she had already uncovered.
I didn’t even look at anything Judy sent me except the General Ledger and Bank Statements. I didn’t want any additional information at that time; I just wanted to audit the General Ledger.
And that’s when all hell broke loose.
On the General Ledger we found the Police and Councilmen getting Personal Loans from the City. Even Jeff Fox Jr. was handed $200. Frank Coe received a $25,000 Personal Loan from the City on November 18, 2012, the same day the General Ledger was pulled.
Auditing the General Ledger exposed that Beaumont Electric was operating out of the City and that the City paid for Stacy Love’s Brother’s Shooting Range.
The Bank Statements showed that the City Overdrew their Bank Account twice in 2011 and there was no $11 Million in Reserves; there wasn’t even $11 Thousand in Reserves.
Any money the City received that wasn’t on parties or the ‘little crooks’ was paid out to Urban Logic Consultants. At that time Urban Logic was being paid $500,000/month on the Check Warrants. I went to Urban Logic’s headquarters in Temecula, but the building was empty. When I called Urban Logic’s ‘office phone’ Kyle Warsinski answered by saying “Sewer Department”.
But most importantly; the Audit exposed an unnatural relationship with Union Bank of California. The General Ledger showed money going back and forth between the City and Union Bank that made no sense and were not legal; like when Union Bank sent the City money to cover their Overdrawn Bank Account in 2011.
Within six months I was able to file a Complaint with the Securities and Exchange Commission on Union Bank of California. I didn’t know at the time that the S.E.C. could go after the City since the City was the Issuer of the Bonds.
Five years after the original Public Records’ Request, over 100 Audits, State Controllers’ Investigative Report, SEC Subpoenas, SEC Cease and Desist order, Indictments of the Expendable Seven, and the replacement of every Councilmen; and the new Beaumont is more corrupt than the old Beaumont.
Beaumont’s new Councilmen just brought in a more corrupt group of Lawyers and Consultants to continue the Bond and Construction Scam. Government Documents were destroyed to hide past illegal activities and Mike Busch, an Associate of Kapanicas, was hired to continue the same scams.
Council continues to ‘Approve’ running Beaumont’s bond and construction scam that trades Bond Debt for Mitigation Fees even though the SEC has the City locked out of the Bond Market. Thousands of houses continue to be constructed without any regard to CEQA EIR Laws or a need for additional houses on the market in Beaumont.
Beaumont City Council’s ‘solution’ to the embezzlement of $300 Million in Federal Municipal Bond Money was to Forge the Bond Certificate of Completion Documents and claim that all the Infrastructure was completed.
Beaumont City Council’s ‘solution’ to past Forged Financial Statements was to Forge the Financial Statements again.
Five Years after the Auditing Beaumont’s books and exposing more corruption in one town than should be found in the entire State; the City still has no Finance Department, no Accountants on Staff except bimbo Taylor, and a dirtier Law Firm than Aklufi Wysocki ever dreamed of being.
Five Years of exposing corruption and the City can’t produce a 2016 Audit because the City Forged their 2015 Audit to such an extent the Auditors are afraid to proceed because they’re going lose their license and perhaps end up in Federal Prison.
TO THIS DAY not one person in Beaumont has been fired or held accountable. Not one Contract has gone out to Public Bid as required by State Laws.
Five years of Audits and the City of Beaumont still refuses to follow State and Federal Laws.
5 Years of Audits and 8 Years previous of Citizens screaming for relief from Beaumont’s bond and construction scam and the New Beaumont is more corrupt than the Old Beaumont.