Report: SEC investigating Calif. city's bond sales

AP News
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Posted: Oct 15, 2010 8:56 PM
Report: SEC investigating Calif. city's bond sales

The Securities and Exchange Commission has launched a probe into whether money generated by the sale of three bonds by the troubled Southern California city of Bell was properly used.

The Los Angeles Times reported Friday the federal agency has asked for documents involving the sale of the bonds between 2005 and 2007 totaling $70 million. A subpoena obtained by the newspaper names nine current and former Bell leaders, including ex-City Manager Robert Rizzo.

An e-mail message left for a SEC spokesman was not immediately returned.

Rizzo and seven other current and former city officials face criminal charges accusing them of misappropriating public funds after the newspaper reported many city leaders gave themselves exorbitant salaries.

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Information from: Los Angeles Times, http://www.latimes.com