The Riverside County District Attorney’s Office is Involved and Refuse to Indict the Councilmen that Approve the illegal activity.
California State Attorney General
1300 I St
Sacramento CA 95814
ATTN: Public Integrity Unit
September 29, 2016
RE: City of Beaumont
Enclosed are documents regarding the City of Beaumont. I am requesting that the State Attorney General take the Lead Prosecution in the Beaumont corruption case because the corruption involves other aspects of Riverside County. The Riverside County District Attorney’s Office refuse to Indict the Councilmen that Approved the illegal activity.
Multiple Complaints were filed with the Riverside Grand Jury and D.A.’s Office over the last 12 years; all complaints were dismissed and/or ignored. Judy Bingham, a Resident of Beaumont that reported the City’s corruption, has been arrested four (4) times and was CONVICTED by the Riverside D.A.’s Office of ‘Making a Terrorist Threat’ in 2005. Judy Bingham was 57 years old at the time. Mello Roos Bond Requisitions show that Bond Funds used to confiscate Bingham’s property in 2003 and 2004. (Exhibit A)
Mike Lara, current Mayor of Beaumont, is also the Riverside County Building and Safety Inspector. Lara’s Employee, Chandra Thomas, posed as ‘County Official’ and demanded access to the Bingham Property in 2012. The City of Beaumont has built over 23,000 houses in violation of State CEQA, Contract, and Building Laws. The City maintains no records of Infrastructure Construction as required by California Contract Codes. All CEQA EIRs are declared Negative Declaration. (Exhibit B)
The City Council refuses to hire staff to properly operate the government. Melana Taylor is the only Accountant on Staff. Taylor Forged the Sewer Fund Financial Statements and no longer signs as Finance Director. Karee Keyser, Customer Service Coordinator, now signs as Finance Director. Keyser’s Husband is Police Officer. Kari Mendoza was listed as a Police Division Commander in 2014, but now holds title of Human Resource Director and is Signing as Finance Staff.(Exhibit C)
On September 6, 2016 the Beaumont City Council Approved Forging Government Documents In Order To Transfer $5 Million CFD Funds from the Sewer Fund to the General Fund. (Exhibit D)
On August 25, 2016 the Santa Ana Regional Water Quality Control Board issued an Investigative Order after it was discovered that the City was in Capacity Violation and did not have a Federal NPDES Permit for Commercial and Industrial Waste. (Exhibit E)
The City has forged their Financial Statements for 20 years and can not produce an Audit. On July 5, 2016 Council Approved Agenda item 3.C. Forged Utility Authority Financial Report. Former Finance Director William Aylward admitted that the $70 Million in Sewer & Machinery Entries were Forged. Every Member of Beaumont Council, Staff, and the Auditing Firm of Van Lant and Fankhanel received a copy of the General Ledger and Bond Fund Accounts showing that all of the money was Funneled to Urban Logic Consultants and Machinery and Equipment was never purchased, but Council Approved the Forged Document anyway. (Exhibit F)
The City of Beaumont collects Mitigation Fees from Developers, but spends the money in the General Fund and never builds the Infrastructure. The Mitigation Fees are Reimbursed to the Developers with Mello Roos Bond Funds, so the Developers don’t care that there is no Sewer Capacity, Recycled Water, Fire Stations, or Roads.
To quote current City Manager Richard Warne who Urban Futures also put in Calexico after Bond Funds were stolen: “because we have this Deficit, the way the City’s able to continue to finance operations over the entire fiscal year is that it must borrow, or take money, from the CFD Funds and the Mitigation Funds in order to get through the year, the entire fiscal year, and provide the services.”
On July 21, 2015 the Beaumont City Council Approved $13 Million Mello Roos Bonds for Pardee Homes Development Area 8E. The City was not able to acquire the Bonds, so on March 4, 2016, Pardee Homes filed a $2.8 Million Claim against the City wanting reimbursement of Mitigation fees. (Exhibit G)
But the Indictments, the SEC Investigation, and inability to acquire more bonds does not dissuade the Beaumont City Council from promising more bonds to Developers. On June 7, 2016 the Council changed Area 19B from CFD 93-1 to CFD 2016-1 and Approved $13 Million Bond Debt. On September 6, 2016: Council Approved CFD 2016-2 to acquire $14 Million in Bonds. On September 20, 2016: Council Approved CFD 2016-3 to acquire $22 Million in Bonds. (Exhibit H)
The City of Beaumont has collected over $250 Million in Mitigation Fees. The General Ledger shows most of the money was paid to Urban Logic Consultants. (Exhibit I)
The Riverside D.A. is only Investigating the TUMF stolen from the Western Riverside Council of Governments, but there is over $400 Million missing from the City of Beaumont.
The Beaumont City Council refuses to hire by California Public Bid Laws and has brought in Lawyers and Consultants that are Associates of the past Staff. Former Beaumont City Manager and Principal of General Government Management Services worked with the Law Firm of Orrick, Herrington & Sutcliffe in Lincoln, CA, in 2003 and Urban Futures is Calexico in 2014. Also included are statements from Residents of the City of Calexico who are also victims of Bond Fraud in their Community. (Exhibit J)
The Attorney General’s Office must step in to stop the continuing pattern of Corruption. The former and current Beaumont City Council Members must be Indicted because they are the ones violating State and Federal Laws and Approving Illegal Activity.
The same documents were sent to the Riverside District Attorney and FBI Sacramento Office.
Thank you,
Libi Uremovic