Bell hopes to take back $4.5 million found in pension account created by Rizzo

Bell officials said they are trying to determine whether they can use any of the $4.5 million discovered in a supplemental retirement account former city administrator Robert Rizzo created for some city employees.

The existence of the $4.5 million was revealed in grand jury transcripts The Times obtained Monday.

Times Investigation: Articles, photos and interactive graphics on Bell corruption scandal

The discovery of the money could be a boost for the finances of Bell, whose entire operating budget is about $13 million and is facing major cuts in the wake of a corruption scandal.

But it remains unclear whether Bell can gain access to the money. City officials said they have directed the staff to study the issue and come back with recommendations.

Councilman Danny Harber said attorneys are now looking at how the city could get the money back into its coffers, adding that the funds would be hugely helpful in bringing down Bell's deficit.

"It's certainly something we'll look into, but it shows you what the previous administration's focus was and that was to milk the city's finances and enrich themselves," added Mayor Ali Saleh.

Interim city manager Pedro Carrillo warned earlier this year that the city was in deep financial trouble and could face a deficit as high as $4.5 million by the end of the fiscal year. Carrillo outlined several drastic options such as cutting municipal services and even disbanding the Police Department.

According to the grand jury transcripts, Rizzo established two pension plans designed to provide retirement income — above the level he and other employees would receive from the state pension system. One retirement account covered about 40 employees, giving them benefits that exceeded those allowed by California's public employee pension rules.

A second was just for Rizzo and his deputy, Angela Spaccia, according to the transcripts, allowing them to get around Internal Revenue Service regulations capping government pensions.

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Photo: Members of the new Bell City Council, left to right: Mayor Ali Saleh, Nestor E. Valencia, Violeta Alvarez, Vice Mayor Danny Harber and Ana Maria Quintana, reacted with anger to the revelation of supplemental retirement accounts. Credit: Ricardo DeAratanha / Los Angeles Times

Comments

[gregory stanley]

still no charges filed on chief randy adams. why not?

[Cathy O'Dell]

I hope that this financial rip-off of the City of Bell wakes up the residents to the point where they will scrutinize their city government closely from now on. What the previous city administrators did was an outrage. I feel sorry for all the taxpaying residents of Bell. Hopefully they will never experience anything like this again.

[upwinger]

The New York Times says that not only can cities, counties and states cut the salaries and pensions of CURRENT employees and retirees, many are actually doing it!

http://www.nytimes.com/2011/04/26/us/26pensions.html?hp

[shadowpark]

He will forfeit all his earnings and have to repay under criminal enterprise so yes they can take it .

[clockerbob]

modern genius. he'll earn $20,ooo a month retired
and if it were not for latimes he would have made it.

[Jerry Harris]

I just don't get it, "try to get some of the money back?" This is stolen money, money that the city of Bell needs. Get it back and get it now.
Jerry Harris
San Francisco

[Alex]

Stop ignoring the Police Chief! He should be prosecuted too! Everyone seems to be hush hush about this guy. It was obvious he was in on it. The e-mail exchange he had was incriminating at every level!

Prosecute him!

[AndreaU8]

Yes - why no charges on the Bell Chief of Police? He is as dirty as Rizzo.
And come on - this additional retirement fund has to be ILLEGAL and so, the money should go back to Bell.

[ywecare]

Even if residents better scrutinize their city government, as long as the administrators can get away with it (i.e. Randy Adams), there is literally nothing that can stop this from happening again.

[sambrowne]

Yes, the chief needs to be prosecuted....however, Steve Cooley (his buddy) won't touch him. And, I say this as an officer who works for Bell...who worked for Adams.

[ten29me]

@ gregory stanley,The "LETTER OF THE LAW" Does not apply to everyone ,If you have well connnected friends like the "BEYOND REPROACH" and "Mr. ETHICS" POOR EXCUSE FOR A BADGE ,Randy Adams wont see a day in jail,So long as his best friend "HONEST STEVE COOLEY" is D.A. His office won't file,It's hands off his Compadre,,,,,,,,,,,Adams knew all along that he was involved in a criminal act,,,,,,,,,,,,,SHAMEFUL,,,

[smoon]

This scandal goes all the way to the governor of California.....
He was the attorney general before his current job.
He allowed Grand Thef to occur as attorney general
and now we call these found funds.
These are stolen property from the taxpayer of California.
yes, it might help - but they are not even sure they can get access to the $4.5 million stolen from the taxpayer.
But alas all we are seeing is reduced services due to poor job as an attorney general and an outrageous criminal act in the city government of Bell

[Astonished]

Wow! It must be nice. Most honest people can only dream of that much money! He should be made to do community service for the rest of his miserable life! Maybe downtown in skid row so he can see what it's really like to suffer!

[Ome-Coatl]

Watch this latest bunch of council members like a hawk. Little people with a little power quickly begin to think they're Pahraohs. Watch that $4.5 million before it disappears.

[So what]

I do not understand "can the City get to it". It is theirs. Let Rizzo sue them to get it back.

[James Banks]

Everyone posting here about former police chief Adams should be addressing their questions and gripes to DA Steve Cooley. Randy Adams' golfing buddy.

[commonsenseuseit]

All are Democrats which we keep electing along with other corrupt politicians. With no oversite, government takes from the taxpayer and enriches it's servants.

[ten29me]

james banks are you for real? Sworn police officers met with "HONEST STEVE COOLEY ,,And was told and handed iformation in writing and did nothing with it .He sat on all the info until he could use it for his bid for Attorney General. He had all the where with all to open this wide open well over a year before it came to light. Thank God Kamela Harris beat him.You imagine this guy being Attorney General?Keep in mind he let this go for well a "YEAR",,,,Go figure,That is a travesty of "JUSTICE".

[Tim]

And there's a couple of crates of potato chips they found too!

[Robert T]

Gotta love how gov't employees make so much more than the private sector when you include their pension and free health care.

Remember that the next time you look at all the taxes and fees you pay.

Dems rule.

[Robert T]

The average Joe is getting HAMMERED by government employee pension and free health care costs.

[Skep41]

This repulsive toad is the stupidest human being on Earth. When you're committing felonies and your photo appears on the front page of the local newspaper its time to empty all your secret accounts and head for that condo in Recifé that you were smart enough to sink some of your ill-gotten gains into. But these geniuses didnt stir themselves to get out of town while the getting was good and now they're headed for the slammer.

[Michael Ishoj]

OCT. 1997

A must read for all the politicians and bureaucrats who have, and
still are, disrupting the lives of so many trusting individuals.

THE POLITICAL IDIOTS

Who I am and what I stand for,
This honestly does not matter.
The things I say, the promises I make,
This honestly does not matter.

The lies I speak, the hope I give,
This honestly does not matter.
The people who listen, the people I represent,
This honestly does not matter.

Young and old, wealthy or poor,
This honestly does not matter.
The air you breathe, the water you drink,
This honestly does not matter.

The religion I am, the color of my skin,
This honestly does not matter.
The decisions I make, the decisions I break,
This honestly does not matter.

The money I’ll make, the pension I’ll take,
Now this is what I’m after.
I’m out for myself, my wealth, my health.
The most important matter of all.

God bless the historians.

For they know the Political Idiots.

I honestly hope my poem does not offend
anyone. If I was a “P.I.”, it would be hard
to find a better country to practice this given talent.

Michael Ishoj

Thornhill, Ontario CANADA

Fall 1997

[Richard]

The reason why the Chief has not been prosecuted, yet, is that he is not actually guilty of a charge easy to prove. What they will have to do is charge his with conspiracy or something similar since he was not the guy the wrote the contracts, he was just a beneficiary of them.

If it turns out that he had a fiduciary duty with regards to the compensation levels then they might be able to get him on that, but I'm not sure such a thing exists.

[john doyle]

I can see it now, its illegal to take the money out, well it was illegal to put the money in...You can always sell his organs for a few bucks, go for it