City of Bell scandal

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. Subsequent investigations found atypically high property tax rates, allegations of voter fraud in municipal elections and other irregularities which heightened the ensuing scandal. These and other reports led to widespread criticism and a demand for city officials to resign.

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."

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.

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.

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." Provided by Wikipedia