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Monday, July 16, 2012

Another California city, San Bernardino files for bankruptcy - how long before California hits the Financial Brick wall?

Allegations of Fraud - Please say it ain't so! Politicians wouldn't engage in Fraud now, would they???
James Penman, city attorney general of San Bernardino, talks to the media at the city council chambers July 11, 2012. The city council of San Bernardino, California, voted on Tuesday to file for bankruptcy, marking the third time in recent weeks a city in the most populous U.S. state has opted to seek protection from its creditors. REUTERS/Alex GallardoThe political infighting, vividly on display in the days since the city council's surprise July 10 vote to seek bankruptcy protection, even extends to fraud allegations advanced by James Penman, the long-time city attorney. Penman said ahead of the bankruptcy vote that financial documents had been falsified in 13 of the past 16 years, but toned down his claims the next day, telling reporters that "evidence of suggested wrongdoing" had been turned over to unnamed government agencies. Pressed by reporters, the San Bernardino County sheriff's department confirmed an investigation "related to allegations of possible criminal activity within departments of the San Bernardino city government." It is not clear the investigation has to do with budgetary chicanery -- and Penman, who ran twice unsuccessfully for mayor against Morris, is seen as a political ally of the public safety unions. Read More: Political feuds, denial drove San Bernardino to bankruptcy | Reuters

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