Complaint to FDIC And SEC regarding Beaumont’s Illegal Financial Submissions
Beaumont Staff & Council Forged a ‘Infrastructure Certificate of Completion’ claiming the Completion of Infrastructure that was never built.
FDIC Consumer Response Center
1100 Walnut Street, Box #11
Kansas City, MO 64106
Re: City of Beaumont Municipal Bonds
City National Bank https://www.cnb.com/sitepages/…
To Whom it May Concern;
It was reported at the Beaumont City Council Meeting that the City is attempting to Refinance/Refund several Municipal Bonds. No documentation was provided, but a presentation given at the Council Meeting can be viewed here:
I am the Independent Auditor that uncovered and reported Beaumont’s Bond and Construction Scam to the State and Federal Authorities. Riverside County Indictments, State Controller’s Investigative Report, and three (3) S.E.C. Subpoenas served against the City of Beaumont, Beaumont Finance Authority, and Beaumont Utility Authority can be read on beaumontgate.org.
The Bonds the City is attempting to Refinance were illegally acquired, the money was stolen, and the Infrastructure was never Built. Beaumont Staff and Council Forged a ‘Infrastructure Certificate of Completion’ claiming the completion of Infrastructure that was never built. The quote of September 6, 2017 was from $900/hour Attorney John Knox; “I don’t know that there was a ‘promise’ to build a fire station.”
The S.E.C. has locked the City of Beaumont out of the Bond Market, but the City is continuing to Illegally trade Developers’ Mitigation Fees for Bond Debt. The Mitigation Fees are then deposited into the General Fund and wasted instead of building the intended Infrastructure.
$400 Million is missing from the City of Beaumont. Beaumont Staff and Council Embezzled and/or Misused the Bond Money instead of constructing three (3) Fire Stations, a Wastewater Treatment Facility, Recycled Water Facility, Parks, and major Roadways.
It was disclosed at the June 20, 2017 Beaumont City Council Meeting that the City has recruited two Financial Institutions that have agreed to Refinance/Refund the Bonds; City National Bank and Western Alliance Bank
Enclosed are the following Audits proving the City submitted Forged Documents to City National Bank and Western Alliance Bank in order to Defraud the Banks into Refinancing the Bonds. I have also sent the same documents to the both Banks to make them fully aware of the situation.
Beaumont’s Bonds Illegally Acquired: Every Beaumont City Executive used their government positions to hire their own Private Sector Companies that were in the bond acquisition and construction industries. Seven (7) Beaumont Officials have been Indicted.
$5 Million Transfer: The City of Beaumont illegally Transferred $5 Million out of the CFD Bonds in question on November 18, 2014 to Pay off the 2001 Wastewater Bond, then illegally Credited $5 Million into the City’s General Fund on September 6th and October 18, 2016, instead of putting the money back into the CDF Bonds.
Forged Infrastructure: In order to justify transferring the $5 Million into the General Fund; Beaumont Public Works Director Amer Jakher and Interim City Manager Richard Warne Forged Documents Verifying that ‘All Infrastructure’ was Completed on September 6, 2016. The Certificate of Completion was altered on October 18, 2016 from ‘Infrastructure’ to ‘houses’ completed. Beaumont City Council Approved both Reports.
Prepayments, Foreclosures, & Abandoned Houses: The City calculated the ability for Property Owners to pay the Bonds without consideration that Millions have been collected in Prepayments, but the City has no Records. Because the City has flooded the housing market and has outrageous taxes there are literally hundreds of Foreclosed and Abandoned houses. When Mayor Lloyd White was campaigning he stated that “about half” of the houses in his Development were abandoned.
Forged Sewer and Recycled Water Facility: Beaumont has no Recycle Water. The Sewer Plant is deteriorated beyond repair. The City received a Disclaimer of Opinion on their FYE June 30, 2015 Financial Audit because they refused to remove $60 Million in Forged Sewer Machinery & Equipment. The City has filed for a $108 Million Loan from the State Water Board, but has no collateral or matching funds. There is no ‘Plan B’ for funding. Sewer Requisitions show all the money transferred to Urban Logic Consultants: http://beaumontgate.org/beaumo…
No Water Supply: The Beaumont Basin is the only natural water source for the City of Beaumont. In 1994 the City was given permission to construct 2,212 houses predicated on the City completing a Recycled Water Facility by March, 2015. The Facility was never constructed and over 15,000 houses have been built in Beaumont. 2/3’s of the Beaumont-Cherry Valley Water District’s water supply is dependent on Imported Water Purchased from other Sources. Imported Water makes up 1/2 of the Yucaipa Valley Water District’s Supply. A Complaint to the Federal EPA has been submitted against the California Water Quality Control Board for their Fraud and Collusion in Beaumont’s Embezzlement: http://beaumontgate.org/state-…
City Insurance: The City of Beaumont was part of ERMAC Self Insurance. James Gregg was the Principal of ERMAC, the Principal of GGMS, and received a Salary from the City of Beaumont as Risk Manager. The City’s ERMAC Insurance Policy Expires June 30, 2017. There was no new Insurance Policy on the City’s June 20th Agenda. Beaumont and James Gregg have been removed from ERMAC: http://www.ermacjpa.com/profile/
CEQA EIR: The State of California requires CEQA EIRs to be filed for large Construction Developments. The City of Beaumont has not filed a legitimate EIR in over 20 years. Most of Beaumont’s Housing Developments had no EIR filed at all.
Fire Stations: Federal Fire Protection Guidelines require a maximum 5-Minute Response Time. Beaumont has grown from 8,000 to over 46,000 without building any Fire Stations. The City doesn’t even own a Fire Engine and is completely dependent on the County and neighboring cities. Some houses in Beaumont are over 20 minutes away from fire and safety protection.
Illegal Taxes: The City is Illegally overcharging Property Taxes to CFD Bond Property Owners. In 2017 CFD Bond Property Owners were Illegally charged $8 Million to pay for ‘Services’ derived from the Facilities that were never built.
Future Growth: The housing market in Beaumont is flooded. Housing prices in Beaumont are far lower than anywhere else in Riverside County. Beaumont is still planning to construct thousands more houses to increase the population to 80,000 plus 5 Million sq. ft. of Warehouses on the southwest side of town. There is not enough water to sustain the current population.