Los Angeles News
SEC investigating Bell's usage of bond sales
BELL, Calif. (KABC) -- The Securities and Exchange Commission has launched an investigation, looking into whether money from the sale of three bonds by the city of Bell was improperly spent.
This is more fallout from the state's audit of Bell's finances that found that city funds had been grossly mismanaged. Now, the SEC is investigating the sale of $70 million in bonds sold between 2005 and 2007.
In reports, state auditors were highly critical of how bond money was used in Bell, a city they said had virtually no fiscal controls.
Former City Manager Robert Rizzo and seven other current and former city leaders are facing public corruption charges.
Federal investigators have reportedly named those officials in a subpoena, seeking documents related to the bonds sales. The SEC has made fraud and municipal and state bond offerings a priority in recent years, and Bell officials will be required to testify under oath.
Bell residents have been very angry about the corruption scandal. A voter empowerment workshop in Bell was scheduled for Saturday to provide information about voter rights and procedures.
arrest, fraud, sec, los angeles news
- Malaysian PM: Jet's disappearance deliberate
- Body found at Anaheim trash recycling center
- 4 kids abducted by parents in Boyle Heights
- Brush fire burns near Gorman by Quail Lake
- OC 'flasher' suspect captured in San Diego
- Pinkberry co-founder sentenced in 2011 beating
- Fatal 210 shooting likely sparked by road rage
- Man who hoarded snakes in OC home charged
- Pistorius photographed in bloodied prosthetics
- abcnews: Baby girl with 2 heads born in India
- Crimea vote won't be recognized by US - Kerry
- Baby gorilla born through rare C-section
- Sailor in iconic WWII kissing photo dies
- OTRC: 'Scandal' recap - 5 highlights (Spoilers)