Council should Resign for knowingly Approving Forged Financial Statements and Bond Infrastructure Certificates of Completion.
The Securities and Exchange Commission has Released three separate Orders regarding the City of Beaumont’s $300 Million Bond Fraud Scam. Below are Summaries of each Order. Because of Violations of Federal Laws; Indictments will be Issued by the Federal Attorney General’s Office.
Beaumont Finance Authority Sanctions and a Cease and Desist Order: https://www.sec.gov/litigation/admin/2017/33-10406.pdf
The City of Beaumont has been locked out of the Bond Market for over a year. This is an Official Order for the Beaumont Financing Authority to “Cease and Desist From Committing or Causing any Violations and any Future Violations”. The S.E.C. has given the City an opportunity to comply, but that’s probably not going to be possible for many reasons.
City does not have the Financial Requirements required by California State Law to legally form a Joint Powers Authority in the first place. Beaumont Staff and Council use the Joint Powers Authority to circumvent State Laws Prop 13 requiring Voter Approval for Bond Debt.
The Order references the City’s past Submission of Fraudulent Audits and Certificate of Completion Reports and requires Beaumont to Submit Clean Financial Statements to a Independent Auditor and to submit honest Certificate of Completion Reports.
As recently as September, 2016, Beaumont Staff and Council Forged the Bond Infrastructure Certificates of Completion claiming that the City has build a Recycled Water Facility, Fire Stations, and Roadways and no other Funds are needed.
Beaumont Staff and Council got caught Forging the 2015 Audit to Defraud Private Banks just a few weeks ago. The SEC Cease and Desist is specifically directed to stop the Forging of Documents.
Alan Charles Kapanicas Complaint for Permanent Injunction and Other Equitable Relief: https://www.sec.gov/litigation…
Former Beaumont Finance Director Alan Kapanicas signed every Bond acquired and was responsible for the submission of Documents to the SEC. Kapanicas has received a Permanent Injunction forever prohibiting any participation in the Bond Industry.
SEC vs O’Connor & Company Securities: Administrative Cease and Desist: https://www.sec.gov/litigation…
O’Connor Securities was the Broker Agent for every Beaumont Bond. Anthony Michael Wetherbee of Palm Springs was a O’Connor Security Co-Founder and primary Agent for Beaumont.
Wetherbee and O’Connor Securities failed to ensure that Beaumont was submitting valid documents and to follow SEC Laws. O’Connor Securities also charged Beaumont Fees that were 2 1/2 times higher than average Fees.
Wetherbee has been Suspended for Six Months and Fined $15,000. O’Connor Securities have been Censored and received a Cease and Desist Order until they can prove compliance with SEC Laws.
A Report by Mondovisione provides a summary of the SEC Orders : http://www.mondovisione.com/me…
The City of Beaumont Issued a Statement regarding the Orders: http://ca-beaumont2.civicplus.com/DocumentCenter/View/29815
The SEC required the City to hire an Independent Consultant that has not been associated with the City in the last two years to oversee the City’s compliance.
The Council must fire the Finance Director, Auditors, City Attorney and City Manager that conspired to Forge the 2015 Audit. The City must establish a Finance Department that is separate from the City Manager and consists of a real Finance Director, at least three more Accountants, and six to eight Accounting Technicians to properly account for the Bonds.
Beaumont must submit honest Financial Statements to an Independent Auditor and submit Facility Certificate of Completions that are not Forged.
And frankly; the Council should Resign for knowingly Approving Forged Financial Statements and Bond Infrastructure Certificates of Completion.