SEC investigating Bell's usage of bond sales

BELL, Calif.

This is more fallout from the state's audit of /*Bell*/'s finances that found that city funds had been grossly mismanaged. Now, the SEC is investigating the sale of $70 million in bonds sold between 2005 and 2007.

In reports, state auditors were highly critical of how bond money was used in Bell, a city they said had virtually no fiscal controls.

Former City Manager /*Robert Rizzo*/ and seven other current and former city leaders are facing public corruption charges.

Federal investigators have reportedly named those officials in a subpoena, seeking documents related to the bonds sales. The SEC has made fraud and municipal and state bond offerings a priority in recent years, and Bell officials will be required to testify under oath.

Bell residents have been very angry about the corruption scandal. A voter empowerment workshop in Bell was scheduled for Saturday to provide information about voter rights and procedures.

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