Saturday, July 14, 2012

Criminal probe of San Bernadino city government, possibly hid records revealing financial problems

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7/12/12, "San Bernardino bankruptcy: Criminal probe underway," LA Times

"Law enforcement officials said Thursday that they have an open criminal investigation regarding allegations of misconduct in the city government of San Bernardino, which announced this week it was going to file for bankruptcy.

The San Bernardino County Sheriff's Department released a statement confirming the probe but released few other details.

"Several months ago at the request of San Bernardino city officials, the San Bernardino County Sheriff’s Department, along with the San Bernardino Police Department and the district attorney’s office began an investigation related to allegations of possible criminal activity within departments of the San Bernardino city government," the statement said. "The investigation is continuing, and details will not be released at this time. Updates will be provided as new information becomes available."...

There have been allegations that some financial documents were falsified to hide the seriousness of San Bernardino's financial woes....

On Tuesday, the City Council voted to seek Chapter 9 bankruptcy protection, a section of federal law for municipalities facing insolvency. Interim City Manager Andrea Miller told the council that the city faced a $45.8-million budget shortfall, the equivalent of about 35% of the city’s annual budget, and would not be able make payroll this summer.

San Bernardino is the third California city to seek bankruptcy protection in the last month, joining Stockton, in the Central Valley, and Mammoth Lakes in the eastern Sierra Nevada." via Drudge


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