Securities and Exchange Commission vs City of Beaumont
Yes, Beaumont’s current problems with the SEC were created in the last Three years.
At the February 6, 2018, Beaumont City Council SEC Continuing Disclosure Training Meeting Councilman Lloyd White made the comment: “.. we’ve learned during the SEC investigation that multiple additional complaints for all sorts of other violations were sent to the SEC.”
Yes, that is correct. The City of Beaumont’s current problems with the SEC were created in the last three years.
I never filed a complaint with the Securities and Exchange Commission against the City of Beaumont. The Complaint to the SEC was filed against Union Bank of California in March, 2013. In the Complaint I used Beaumont’s bonds as one of many examples of Union Bank’s fraudulent activity, but the Complaint was against Union Bank.
I was tracking municipal bond fraud in Cali long before I met Judy Bingham. Beaumont’s bond and construction scam is an extreme example of what is occurring in government agencies throughout the State, but predominantly in Riverside, San Diego, and Orange Counties.
Beaumont was already on the SEC’s radar before I filed a complaint against Union Bank.
From the SEC Cease and Desist Order Page 3, Item 10. “In December of 2011, while reviewing a preliminary official statement for a 2011 bond offering by the BFA, a credit analyst at a large institutional investor requested that the District revise the terms of a draft CDA for those bonds.”
Even though they weren’t part of Riverside County’s Raids; Beaumont’s former Risk Manager James Gregg is no longer working in the bond market and Union Bank of California’s Former Trust Department VP Stephen Boughton also lost his job April, 2015.
The City of Beaumont was never the target, but the actions by the Staff and Council after April, 2015, made Beaumont the SEC’s target.
After the Raids ‘Council Approved’ three more Bonds in 2016 and four more Bonds in 2017.
Mayor Nancy Carroll, while acting City Treasurer, faked doing a Public Bid Contract and took responsibility for hiring Macias, Gini, and O’Connell Auditing Firm, who had the bad luck of walking into Beaumont City Hall on the same day that the FBI was conducting their Raid.
Beaumont City Council hired John Pinkney as City Attorney. Pinkney is not qualified to be Beaumont’s City Attorney and the City never advertised the position – Pinkney’s Law Firm got in by soliciting to Lloyd White.
The next crook ‘Council Approved’ was Mike Busch with Urban Futures. The Beaumont City Council knew that Busch and Kapanicas worked side-by-side on an illegal Bond acquisition in Calexico just a couple years earlier.
Mike Busch brought in Bob Deis, who’s claim to fame is covering up Stockton’s bond scam and getting Stockton’s Employee Pension Debt included in their Bankruptcy. Busch also brought in Onyx Jones to be the City’s ‘Finance Director’.
Albert Webb and Associates took over the City’s two biggest scams; the CFD Taxes and the Sewer Plant. ‘Council Approved’ to continue the illegal overcharging of CFD Mello Roos Taxes.
This band of thugs, with Elizabeth Gibbs-Urtiaga as City Manager, created the City of Beaumont’s 2015/2016 Budget, which resulted in the SEC Subpoena request for documents to be produced regarding the 2015/2016 Budget on pages 7-8 of the Subpoena.
Page 8, Item k. of the SEC Subpoena request: “All Documents concerning the administrative leave and separation agreement of employment of Alan Kapanicas.”
Not only was Kapanicas never fired, he was allowed to write the terms of his departure in May, 2015. ‘Council Approved’ paying Kapanicas $214,100 in October, 2016, and ‘Council Approved’ paying Kapanicas another $100,000 in September, 2017.
AFTER the SEC Subpoena the Beaumont City Council ‘Approved’ hiring an $895/hour lawyer to ‘fight the SEC’.
AFTER the SEC Subpoena the Beaumont City Council ‘Approved’ using the remaining money in the CFD Bonds Accounts to pay lawyers and consultants, but the SEC froze the City’s bond accounts so they couldn’t pillage the money.
AFTER the SEC Subpoena the Beaumont City Council ‘Approved’ continuing to forge $60 Million in Sewer Machinery and Equipment.
AFTER the SEC Subpoena the Beaumont City Council ‘Approved’ forging the Bond Certificates of Completion in order to transfer $5 Million that was removed from the CFD Bonds out of the Sewer and into the City’s General Fund.
AFTER the SEC Subpoena the Beaumont City Council ‘Approved’ forging the 2015 Financial Statements.
AFTER the SEC Subpoena the Beaumont City Council ‘Approved’ four more Bonds to trade for Developer Impact Fees.
And AFTER the SEC Cease and Desist Order Issued in August, 2017, the Beaumont City Council ‘Approved’ forging the 2016 Audited Financial Statements in December, 2017.
And yes, I have been sending the Documents and Council Meeting Transcripts to the SEC as the Beaumont Staff and Council are fully aware because I also publish the information in the Banning-Beaumont Patch.
The Law says that Council ‘knew or should have known’ the documents were forged and their actions were illegal.
But the SEC knows for a fact that Beaumont City Councilmen and Staff knew their actions were illegal because the City was given the same information that was given to the SEC.