Bond Scam 2.0

Have You Ever Heard of a Bank that Allows Outsiders Access to their Computers ?

Union Bank was issued a Legislative Subpoena from the City of Beaumont to produce all of the City’s Bond Fund Accounts and related documentation by March 10, 2016. As Bond Trustee; Union Bank is required to maintain records for the life of the bonds plus 5 years.

Mayor Mike Lara told Judy Bingham that City Attorney Pinkney was sending a ‘Copying Company’ to Union Bank to copy the records. Lara told Bingham what Pinkney was doing, not that Council had instructed Pinkney to hire a company.

This is ridiculous on a multitude of levels.

The theory that Union Bank is going to allow outsiders to rummage through their Trust Department is ridiculous. Union Bank would have their own employees prepare the documents.

Union Bank is Bond Trustee to $2.2 Billion of Mello Roos Bonds and the year is 2016. The theory that Union Bank’s Records are in paper form and not electronic is ridiculous. Union Bank became Beaumont’s Bond Trustee in 2002. Every document is saved electronically. The Bank of New York was the City’s Bond Trustee from 1993 to 2002 and they released their documents electronically.

Did Mike Lara lie to Bingham and make up this ridiculous story?

I doubt it. I’m sure that Lara relayed to Bingham exactly what Pinkney told him.

What is the truth?

No one knows what is the truth. Council has no idea if Union Bank has released the documents. Council has no idea what scam Pinkney is trying to pull. All Council knows is that once again they ‘trusted’ their ‘Staff’ and once again Council has reneged their responsibility to protect public documents.

It’s more than obvious that Pinkney is not the City’s Attorney – he is the Developer’s Attorney.

The Bond Documents belong to the People, not the Staff; and certainly not the Developers.

PUBLIC RECORDS REQUEST:

Letter from Union Bank granting a 3rd party company access to Union Bank’s computer system and records for the purpose of copying Beaumont Mello Roos Bond Documents.

Judy Bingham will be at City Hall this morning with her quarter to pay for the copy.

Produce the Record.