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Past Bell audits missed fraud, mismanagement

November 8, 2010 12:00:00 AM PST
Audits of the scandal-plagued city of Bell repeatedly failed to flag cases of fraud and mismanagement. Those audits are now under investigation by State Controller John Chiang.

Chiang says while Bell city leaders raised salaries, levied illegal taxes and wrongly loaned public money, the finances were given a clean bill of health by the city's outside auditors.

In fact, Bell even won numerous awards for its financial reports.