City of Bell scandal

"Robert Rizzo" redirects here. For the German musician, see Robert Hunecke-Rizzo.

The Bell scandal involved the misappropriation of public funds in Bell, California, United States, over a period of several years in the late 2000s. In July 2010, the Los Angeles Times published an investigative article on possible malfeasance in the neighboring city of Maywood, revealing that the city officials of Bell received salaries that were reported as the highest in the nation.[1] Subsequent investigations found atypically high property tax rates, allegations of voter fraud in municipal elections and other irregularities which heightened the ensuing scandal.[2] These and other reports led to widespread criticism and a demand for city officials to resign.[3][4]

On August 10, 2010, Standard & Poor's lowered Bell's general obligation and pension bond ratings to BB, two notches below investment grade, and placed the ratings on a watchlist for potential further downgrade. S&P credit analyst Michael Taylor said, "We believe that the recent resignation of the city manager and finance director, and reports that the assets purchased with the unrated series 2007 lease-secured debt have decreased in value, have created uncertainty as to the city's future actions."[5]

Eventually, seven Bell city officials, including former mayor Oscar Hernandez, former city administrator Robert Rizzo, assistant city administrator Angela Spaccia, and four city council members were convicted on graft and corruption charges, and were given sentences ranging from probation to twelve years in prison.[6]

Rizzo was sentenced to twelve years' imprisonment for his role in Bell and to 33 months' imprisonment in a separate income tax evasion case. Spaccia was sentenced to eleven years and eight months' imprisonment. Both were also ordered to repay millions of dollars in restitution.[7][8][9]

Spaccia was resentenced in October 2017 after an appeals court reversed five counts of misappropriating funds from the city. Judge Ronald S. Coen handed down a new sentence of ten years on the remaining charges of which she was convicted and the amount of money she was ordered to repay in restitution remained the same, which her lawyers planned to appeal, "contending that she was being told to repay money related to crimes which she no longer stands convicted of."[10]

  1. ^ Jeff Gottlieb; Ruben Vives (July 14, 2010). "Bell city manager could possibly be highest paid in nation: $787,637 a year". Latimesblogs.latimes.com. Archived from the original on July 22, 2010. Retrieved July 26, 2010.
  2. ^ Fund, John (August 7, 2010). "It All Starts with Vote Fraud". Online.wsj.com. Archived from the original on August 19, 2017. Retrieved August 9, 2010.
  3. ^ Gottlieb, Jeff (July 16, 2010). "$787,000 salary for Bell city manager is outrageous, assemblyman says". Latimesblogs.latimes.com. Archived from the original on July 19, 2010. Retrieved July 26, 2010.
  4. ^ Knoll, Corina (July 16, 2010). "Residents of Bell unhappy over perceived high salaries for city employees". Los Angeles Times. Archived from the original on August 12, 2010. Retrieved July 26, 2010.
  5. ^ "Bloomberg Link". blinks.bloomberg.com.
  6. ^ Knoll, Corina; Gottlieb, Jeff (August 1, 2014). "Bell corruption case ends, last defendant gets a year in jail". Los Angeles Times. Archived from the original on May 13, 2015. Retrieved May 13, 2015.
  7. ^ Shirley Jahad (April 16, 2014). "Former Bell city leader Robert Rizzo sentenced to 12 years". Southern California Public Radio.
  8. ^ "Bell scandal: Kingpin Robert Rizzo gets prison term in tax case". Associated Press. April 14, 2014 – via Southern California Public Radio.
  9. ^ Shirley Jahad (April 10, 2014). "Former Bell official Spaccia sentenced to 11 years, 8 months". Southern California Public Radio.
  10. ^ "'I didn't steal the Maserati,' Bell scandal defendant says after being resentenced". Los Angeles Times. October 23, 2017.