City officials announced Wednesday that the U.S. Securities and Exchange Commission served subpoenas, but the SEC is keeping mum.
BEAUMONT, CA- Beaumont officials announced Wednesday that the city is being investigated by the U.S. Securities and Exchange Commission; an investigation in which they will “…fully cooperate.”
The city issued a press release Wednesday stating the SEC subpoenaed documents from the City of Beaumont, the Beaumont Financing Authority, and the City of Beaumont Community Facilities District No. 93-1. Those subpoenas were served on April 22– exactly one year, to the day, that the FBI and Riverside County District Attorney’s office served warrants at Beaumont City Hall, Urban Logic and the Palm Desert home of former City Manager Alan Kapanicas.
“The subpoenas follow the city’s ongoing investigation relating to the use of bond proceeds, the expenditures of special tax revenues, and continuing disclosure compliance,” Beaumont said in its news release. “While the city cannot predict when the SEC will conclude its investigation or the outcome, Beaumont will continue to fully cooperate with all agencies.”
Patch reached out to the U.S. Securities and Exchange Commission for more information and comment, but the public affairs department declined to provide any comment related to questions on the city of Beaumont. They wouldn’t even confirm that the subpoenas were served.
Meanwhile, the FBI and District Attorney’s Office have yet to release any possible findings from last year’s raids.
“It is still an ongoing investigation,” John Hall, a spokesman for the DA’s office, told Patch Wednesday.