Beaumont Trying to Claim ‘Attorney Client Privilege’, but the SEC is Not the City’s Lawyer.
On August 24, 2017, the SEC Issued an Order to the Beaumont Finance Authority to “Cease and Desist from Committing or Causing any Violations and any Future Violations”: http://beaumontgate.org/news/s…
The SEC Cease and Desist Order requires the City to properly establish a Finance Department and re-submit Forged Financial Statements. The Order also requires the City to hire an Independent Consultant to write a report verifying the City’s Compliance with Federal Securities Laws.
Beaumont refuses to hire honest Staff and properly account for the City’s Finances and are spending all their time and the Taxpayers’ money trying to find another dirty Law Firm that will Forge the City’s Financial Statements.
Beaumont City Manager Todd Parton first tried to hire an Out of State Law Firm on September 19, 2017, claiming that he couldn’t follow State Public Bid Contract Law because it was ‘an emergency’. https://beaumont.civicweb.net/…
Council directs Parton to follow State Law.
On November 7, 2017, Parton request to hire another Out of State Law Firm that’s not licensed to practice law in the State of California. Judy Bingham read the State Laws requiring all lawyers to be a member of the California Bar Association. Mayor White interrupted Mrs. Bingham because – I have no idea why – somebody ask White why he didn’t listen or hear what Bingham was saying.
When White asked his trusted Staff that work so hard and do such a good job and have never lied to him – since the Raids – if it was legal to hire Out of State Lawyers that were not admitted to the Bar in California.
City Manager Todd Parton claimed to have received approval from the SEC. Acting City Attorney Robert Patterson then used Parton’s claim of SEC Approval and a couple other reasons as excuses to hire a Lawyer that can not legally practice law in the State of California.
There was no SEC Verification included in the Staff Report, Patterson never saw it or requested to see it, and of course not one Member of Council requested to see SEC verification, so we did a Public Records’ Request for the SEC Verification.
Now the City is trying to claim that the document is ‘Attorney Client Privilege’.
The SEC is not the City of Beaumont’s Lawyers; they are another government agency.
The SEC gave the City of Beaumont 180 Days to get the City into Compliance with Federal Securities Laws and all the City has done is try to hire more corrupt lawyers. Not one Accountant has been hired and no attempt has been made to resubmit legal Financial Statements, Continuing Disclosure Reports, and Certificates of Completion Reports.
Beaumont’s 180 Days Expires February 22, 2018.
The first 10 minutes of the Rachel Maddow Show talks about Alabama’s government corrupt lawyers:
Beaumont City Council Transcript November 7, 2017
Agenda Item 3. Authorize Executive Director to Enter into a Contract with Bradley Arant Boult Cummings L.L.P (Badley) to Serve as Independent Consultant as Required Pursuant to SEC Settlement:
30:00 City Manager Parton Reads Staff Report: https://beaumont.civicweb.net/document/9783/Item%203.pdf?handle=0D4CAE7E3AEB42E3AFFE78B2835E751B
Parton “We wanted to be sure the selected consultant was deemed not unacceptable to the SEC pursuant to their Agreement with us. They did respond back that Bradley was not deemed to be not unacceptable. Therefore; they were cleared to accommodate and handle this engagement.”
Parton: Forebath involved in selection of Alabama Lawyers.
White: Mr. Patterson is there any issue with Mr. Canter; whether he’s a member of the California Bar to be able to do the work that we’re asking him to do here?
Patterson: As the City Manager mentioned previously; the Securities and Exchange Commission is responsible and has jurisdiction over Federal law, not State law. So the driving force here is under Federal Law, which is the same across all of the States in the Union. So in term of what State Law would apply here; there should not be a significant State Law component to this engagement.
Patterson: Another aspect to look at is that they’re looking at policies and procedures. The question being; are they really practicing law? A lot of the things lawyers do on a day-to-day basis, particularly transactional lawyers, are things that can be done by other professionals as well because you’re not appearing in court, which is a pure lawyer function. A lot of the work that transactional lawyers do is business administration type of practice, which this might fall into.
Patterson: And then I would also point to the fact that the Securities and Exchange Commission, as I understand it, has, as your City Manager said, ‘not disapproved’ of this Organization. I think that they have some very highly qualified lawyers there and if they thought that this were some kind of a violation of a State’s laws having to do with the practice of law they would have said something.
Patterson: Furthermore; you had your Bond Counsel (Forebath) who is very conversant in these matters, who has also participated in the selection process, so I do not believe that that is an issue that you need to be – that would stop this from moving forward.
White: Thank you.
Approved 5/0