Corruption ran deep in Calif. city, prosecutors say

Associated Press

LOS ANGELES

Eight current and former officials of the city of Bell appeared in shackles before judges Wednesday in a corruption case prosecutors said was so ingrained in the blue-collar suburb that almost anyone who could have blown the whistle was benefiting from it.

Former city manager Robert Rizzo was accused of being at the center of the scandal that went unchecked for years while he reportedly lent city money to himself, his assistant, city council members, members of the police force and an array of city workers that included a recreation attendant who borrowed $1,500.

“The loans which are the basis of these charges were not publicly approved, and the crimes were committed by persons who would otherwise have been responsible for reporting such conduct,” according to a felony complaint charging the suspects with misappropriation of public funds and other charges.

Rizzo also was singled out in a state controller’s audit that said city officials mismanaged more than $50 million in bond money, levied illegal taxes and paid exorbitant salaries to leaders.

Rizzo was being paid nearly $800,000 a year when he resigned earlier this year and had total control of city funds, the audit stated.

“Our audit found the city had almost no accounting controls, no checks or balances, and the general fund was run like a petty-cash drawer,” state Controller John Chiang said in a statement. “The city’s purse-strings were tied to only one individual, resulting in a perfect breeding ground for fraudulent, wasteful spending.”