Kapanicas Payout Complaint
Kapanicas Walked Out on May 29, 2015, but was paid $235,747.92 in Calendar Year 2015, a Raise from his 2014 pay of $230,006.
The City of Beaumont and Riverside County D.A.’s Office Colluded to funnel taxpayer money to Indicted former City Manager Alan Kapanicas as evidenced by Judge Fisher’s May 26, 2017 Order.
Kapanicas has been Indicted for Fraud and Embezzlement, Banned from the Securities Industry by the S.E.C. and the payout violates IRS and California Franchise Tax Board Laws.
Alan Kapanicas was contracted through General Government Management Services (GGMS) as Beaumont City Manager from 1993 to 2011. Citizens complained about the Conflict of Interest, so Council awarded Kapanicas a six-year government employee Contract in June, 2011. At that time Kapanicas submitted a $214,100.00 Invoice from GGMS for work on Development Areas that either were never developed or were developed, but no bond debt was Issued.
From the June, 2011 Agreement:
2.5 Pension. “City agrees to enroll Employee as a member of the Public Employee’s Retirement System (PERS). The City shall purchase five (5) years of pension credit to Employee’s account, with funds presently due and owing Employee’s company GGMS, Inc., for work previously billed but not paid for, in the amount of $214,100.00.”
On October 6, 2015 Beaumont City Council Approved a Payout Agreement for Alan Kapanicas: http://www.ci.beaumont.ca.us/D…
The 2015 Agreement referenced the $214,100 three (3) times:
“Section 2.5 of the agreement also addresses the $214,100 owed at the time the agreement was made.”
“My client would also expect prompt payment of the $214,100 referred to hereinabove.”
5. “Waiver of Other Obligations and Severance Pay. Kapanicas hereby waives the $214,100 due to him under section 2.5 of the employment agreement and further waives statutory severance pay.”
Aside from the fact that it is a Conflict Of Interest for Kapanicas to profit from the individual sale of bonds in Beaumont while acting City Manager; the bonds specifically state that payment for bond services is contingent upon the sale of the bonds.
Area 1A: Never Developed
Area 4: Never Developed
Area 4A; Never Developed
Area 13: No Bond Debt
Area 15: No Bond Debt
Area 19B: Never Developed
Area 19D: Never Developed
Area 19E: Never Developed
Area 19F: Never Developed
Area 20: Bond Acquired April, 2012
Area 21: Never Developed
Area 22: Never Developed
Area 23: No Bond Debt
Area 24: Never Developed
Area 24 Amended: Never Developed
Development 98-1: Never Developed
Kapanicas was never entitled to be paid for the items on the Invoice. Council has no legal right to gift or trade government benefits. The $241,100 phony Invoice should have never been included in any negotiations. Former City Attorney Aklufi/Wysocki knew or should have known the Invoice was fraudulent. Acting City Attorney Pinkney knew or should have known the Invoice was fraudulent.
The Riverside District Attorney’s Office and FBI Raided the City of Beaumont and Kapanicas’ personal residence on April 22, 2015. The D.A. has charged Kapanicas with 8 Counts of Embezzlement, 6 Counts of Damage/Destruction of Property over $3 Million, 20 Counts of Multiple Felonies over $500,000, 8 Counts of Misappropriation: Loans for profit, 7 Counts of Misappropriation: False Entry on an Account, 8 Counts of Misappropriation: Own use or use of another, and 2 Counts of Conspiracy to Commit Crime.
Kapanicas stopped working as the Beaumont City Manager on May 29, 2015, but continued on the Payroll. Kapanicas’ six-year Contract as a government employee ended on June 30, 2017.
In Calendar Year 2015 Kapanicas was paid $235,747.92, a Raise from this 2014 pay of $230,006. In 2016 the City paid Kapanicas $90,672. To this day Kapanicas has never been reprimanded or fired.
On January 21, 2017 Kapanicas submitted a claim for $110,336.49 with the claim: “Failure to pay earned employee compensation on November 15, 2016 to end employment per terms of ‘Separation and Settlement Agreement’.” Kapanicas submitted another version of the same Claim again on April 27, 2017.
On May 26, 2017 Riverside Judge Mac R. Fisher granted Kapanicas a “Temporary Restraining Order for Protective Relief Necessary to Preserve Property and Asset”. The Order gives Kapanicas $1,800/month starting 05/26/2017 plus an additional $7,500. There is no end to the payments. “..totaling $75,600..” was lined-out.
On July 12, 2017 the City of Beaumont Issued Check #95530 for $101,269.29 to the Law Firm Gresham Savage Nolan Tilden to pay Kapanicas.
On August 23, 2017 the Securities and Exchange Commission Issued a permanent Injunction forever banning Alan Kapanicas from the Bond Market: https://www.sec.gov/litigation/complaints/2017/comp-pr2017-148.pdf
Beaumont City Councilmen and City Attorney John Pinkney claim that Kapancas can’t be fired and they had no option but to continue to pay Kapanicas. Aside from the fact that no contract on earth forces anyone to retain an employee that commits illegal acts; Section 3.3 clearly states that the City can terminate the Agreement with cause.
$400 Million is missing from the City of Beaumont; $300 Million from Federal Municipal Bonds. To This Day the Riverside County D.A.’s Office has not Indicted the Beaumont City Councilmen that Directed and Approved Kapanicas’ actions nor has the D.A.’s Office Indicted anyone from the City of Beaumont for their Bond and Construction Scam, the Indictments are only for the $42 Million Embezzled from the Western Riverside Council of Governments’ TUMF Program.
I suspect that the Riverside County D.A.’s Office is paying off Kapanicas and refusing to properly Investigate the criminal activity in Beaumont because the D.A.’s Office is involved in the crime.
In 2005 the Riverside County District Attorney’s Office and Judge Mark Cope Tried & Convicted Judy Bingham, a 58 year old white woman, for ‘Making a Terrorist Threat’ in an attempt to stop Mrs. Bingham from reporting Beaumont’s Illegal Activity.