Posted on 01/06/2006 2:28:05 PM PST by John Jorsett
A 20 count indictment against was leveled by a federal grand jury against former SDCERS trustees Ron Saathoff, Cathy Lexin, Theresa Webster, Lawrence Grissom and current General Counsel Lorranie Chapin. They were charged with wire fraud, mail fraud and conspiracy to commit wire and mail fraud and aiding and abetting.
That makes for a bad weekend! ;-)
I think just about every elected office in SD has been indicted now. Not the best city in America.
posted earlier. :)
CA: (San Diego) Pension fund indictments to be announced at 2 p.m. (Ruh roh)
http://www.freerepublic.com/focus/news/1553291/posts
What's that sound I hear in San Diego? Ouch!
But with this, recovery is at hand !!
http://www.bakersfield.com/state_wire/story/5811683p-5827851c.html
Five San Diego pension fund officials indicted on federal charges
By ELLIOT SPAGAT, Associated Press Writer
SAN DIEGO (AP) - A federal grand jury on Friday indicted five current and former San Diego pension fund officials on 20 counts of fraud and conspiracy in an investigation of the city's troubled finances.
Ron Saathoff, Terri Webster and Cathy Lexin - three former trustees on the board overseeing the city's retirement fund - were named in the indictment along with the fund's former administrator, Lawrence B. Grissom, and current general counsel, Loraine Chapin.
The five were accused of concealing information from fellow board members about a crucial 2002 vote that allowed San Diego to escape payments to the retirement fund and, at the same time, enhance pension benefits.
Saathoff failed to reveal that the vote would boost his pension by more than $25,000 a year by allowing him to combine his union and city salaries to calculate his pension, according to the U.S. attorney's office.
Attorneys for Saathoff, Webster and Lexin did not return messages left seeking comment. A message left with a San Diego City Employees Retirement System spokeswoman also wasn't returned.
The 2002 vote and a similar move in 1996 were largely to blame for a pension deficit that has swelled to $1.37 billion. The pension debacle has crippled the city's ability to borrow money, sparked talk of bankruptcy and led Mayor Dick Murphy to resign from office last year a few months after he was narrowly elected to a second term.
The U.S. attorney's office and the U.S. Securities and Exchange Commission have been investigating city finances for nearly two years. The investigation was delayed by the pension board's repeated refusal to waive attorney-client privilege and hand over documents sought by federal investigators.
Saathoff, Webster and Lexin and three other former board members were charged last year in state court and pleaded not guilty to felony conflict-of-interest violations for allegedly casting votes from which they personally profited.
The pension mess began in 1996, when the city cut contributions and improved benefits as it grappled with raids on its treasury by state government and costs for hosting the Republican National Convention.
I think you have a long way to go, now you have to jail most of the city staff that put the elected officials in the position to lie, cheat and steal to cover for them.
It looks like 2030 might be a good year. You have now only gotten the head.
S.D.'s 'bout ready to turn the corner
3 years tops till back on track !
OK Mark Larsen - the debt is not relieved, just the folks.
3 years won't change laws or union lawsuits.......
I'm hopeful, but not yet optimistic. The "strong mayor" government we've just instituted has a critical flaw: it takes 5 of 8 City Council members to pass a law, and, if vetoed, 5 of 8 to overturn that veto. So unless one of the 5 who voted for it originally changes his/her mind, the veto is useless. Only electing more responsible Council members is going to turn the situation around.
Hedgecock just brought that up
It may not be business as usual for the Council.
Those members wanting reelection may be more reserved/ethical in future votes - plus you've got an election coming up in a couple of days that could change the balance of power.
Hell, maybe the city attorney will do some indicting (Council members) of his own.
I'm not sure what his powers are, criminal-indictment-wise. I'm sure, Mike being who he is, that if he's got the authority he'll use it. Maybe even if he doesn't have the authority. I can't imagine what's it's like to work for him, since he's fighting on about a hundred fronts simultaneously.
Three years is a bit optimistic. We need more indictments.
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