I am requesting that the SEC obtain an Injunction on City/District/Authority to prevent further bond acquisitions.
Va*******@se*.gov
EN*****@se*.gov
Securities and Exchange Commission
RE: City of Beaumont (SF-04059)
Thank you for investigating the City of Beaumont’s bond fraud. The City did not acknowledge the SEC Subpoenas until May 18, 2016; the day after Beaumont City Council Approved another $16 Million Bond: http://www.ci.beaumont.ca.us/DocumentCenter/View/27568
A Public Records Request for all communication between the City and the SEC was submitted in October, 2015, but the City claimed that there were no documents or communication to or from the SEC.
Since my original complaint to the SEC in March, 2013, the City of Beaumont has acquired the following bonds:
2013 Series B $10,875,000
2015 Series A $11,100,000
2015 Series B $20,095,000
2015 Series C $5,335,000
2015 Series D $7,820,000
On February 3, 2015 Beaumont City Council also formed another Joint Powers Authority in order to acquire a $10 Million Bond through the California Municipal Finance Authority. The City has refused to release any documents regarding this Bond: http://www.ci.beaumont.ca.us/DocumentCenter/View/19780
On April 22, 2015 the Riverside District Attorney and FBI raided the City of Beaumont. Although the ‘old crooks’ slithered out of town, the City Council simply brought in ‘new crooks’ to continue the City’s illegal acquisition and use of municipal bonds funds.
Beaumont can not produce Audited Financial Statements as required by SEC Act of 1933 Section (2)(F) because most of their assets are forged. Council rejected the 2014 Financial Statements Audited by Moss Levy Hartzheim because of the numerous false statements, but Council refuses to submit the 2014 Financial Statements to an honest Auditing Firm.
The City has yet to close the Books for Fiscal Year Ending June 30, 2015. The City either has to plug in numbers like former Finance Director William Aylward or admit that the City has over $100 Million in Liabilities and about $10 Million in Assets.
Council refuses to hire Accounting and Clerical Staff or to properly budget to operate the City. The City is destroying government documents on the advice of City Attorney John Pinkney from the Law Firm of Slovak Baron Empey Murphy Pinkney. To quote Pinkney: “We don’t have to produce documents that we don’t have.”
In the coming weeks I will submit to the SEC the documentation requested from the City since the likelihood that the City will honestly reply to the SEC is remote. I have also audited the Bond Fund Accounts and will submit a summary to the SEC.
Although the City has destroyed their documents and has not properly maintained their records; a private citizen, Judy Bingham, has many of the documents that the City will claim do not exist.
I am requesting that the SEC obtain an Injunction on City/District/Authority to prevent further bond acquisitions.
I am currently in the Sacramento area and can meet with Mr. Varholik if needed. Please feel free to contact me for any questions or clarifications.