(San Diego) City Fell Prey to Enron-like Mismanagement, Report Finds

[MindPilot]

Tuesday, Aug. 8, 2006 -- 10:37 a.m. | The city of San Diego fell prey to the same brand of corrupt financial management and reporting that beset the poster children of corporate malfeasance such as Enron, WorldCom and others, according to a long-awaited report into city finances released today.The report by private consultants from Kroll Inc. found that city and pension officials disregarded laws ensuring good governance and financial soundness throughout the better part of a decade in approving two pension funding schemes, violating the Clean Water Act and maintaining a user-fee structure that caused residents to subsidize large industrial users of the wastewater system in order to create a "business-friendly environment."

Members of the press get their first peek at the Kroll report. Photo: Jessica Horton
The consultants, including two top former Securities and Exchange Commission officials, found that eight former top city officials likely committed securities fraud in acting with "wrongful intent" in the release of misleading financial information to investors. None of the officials are currently with the city.

They are: former Deputy City Manager Patricia Frazier, former City Treasurer Mary Vattimo, former Auditor and Comptroller Ed Ryan, former Assistant Auditor and Comptroller Terri Webster, former retirement administrator Larry Grissom, former Utilities Finance Administrator Dennis Kahlie, former wastewater Deputy Director William Hanley and former Deputy City Attorney Kelly Salt.

http://www.voiceofsandiego.org/articles/2006/08/08/breaking_news/01reportone.txt

[Tempest]

1. That's what happens when you put conservatives in charge

It's not just San Diego, but cities all over the south that are run by Repugs.

And then there's the state of the nation as a whole with the Repugs in charge.

[Tight_rope]

2. We are living in a "Culture of Corruption"!

[bananas]

3. Yeah, we call it "Enron-by-the-sea".

http://www.google.com/search?hl=en&q=%22Enron-by-the-sea%22&btnG=Google+Search

Results 1 - 10 of about 9,860 for "Enron-by-the-sea". (0.48 seconds)

USATODAY.com - San Diego now 'Enron by the Sea'
Proclaimed as America's Finest City, San Diego is now a financial mess. Federal investigators are looking for evidence of corruption, a $1.7 billion gap in ...
www.usatoday.com/news/nation/2004-10-24-sandiego-_x.htm - 61k - Cached - Similar pages

San Diego Blog :: Blog Archive » NYTimes Article: “Enron by the Sea”?
Was “Enron by the Sea” a stolen headline? Look at this article from January, 2002. ... Well, “Enron by the Sea” is hardly the most original phrase. ...
sandiegoblog.com/archives/2004/09/06/nytimes-article-enron-by-the-sea/ - 41k - Cached - Similar pages

USNews.com: Letter from San Diego: Scandal by the sea
In what's being dubbed "Enron by the Sea," county and federal prosecutors are poring over the pension numbers, and six current and former pension board ...
www.usnews.com/usnews/news/articles/050725/25sandiego.htm - 33k - Cached - Similar pages

The Raw Story | Exclusive: Citizens Request Recount in San Diego ...
"Enron by the Sea" shows strange electoral anomalies - a 4 percent shift - ODDS OF SUCH A DISCREPANCY OCCURRING BY CHANCE ALONE ARE LESS THAN 7/100 OF 1%, ...
rawstory.com/news/2005/Citizens_Request_Recount_IN_SAN_DIEGO_MAYO_0818.html - 25k - Cached - Similar pages

America's Finest Enron by the Sea
America's Finest Enron by the Sea. A newcomers look at politics and life in San Diego and its duel personalities, best exemplified by its two nicknames. ...
screechpowers.blogspot.com/ - 47k - Cached - Similar pages

Enron by the Sea
Enron by the Sea. by Bruce Schimmel. If you want really to understand the Enron scandal, take a trip to Atlantic City, where the game of Monopoly was born. ...
www.citypaper.net/articles/013102/sl.loose.shtml - 19k - Cached - Similar pages

Plastic: San Diego: We Got Nothing
The city was referred to as "Enron-by-the-Sea" and "Paradise Insolvent" in the national media. But some San Diegans believe changing the motto was about the ...
www.plastic.com/comments.html;sid=05/12/07/06224754;cid=21 - 35k - Cached - Similar pages

Letters to the Editor - Voice of San Diego
'Enron by the Sea' · Multitude of Opinions · Raising Questions · Consistency in Failing · Deals Gone Bad · All Mixed Up ...
www.voiceofsandiego.org/site/apps/nl/content3.asp?c=euLTJbMUKvH&b=1292871&ct=1289745 - 175k - Cached - Similar pages

What a year! Enron-by-Sea to ballot bubble | The San Diego Union ...
... state bore the correct street address, but was otherwise directed to "Enron-by-the-Sea," CA. "The card was delivered without delay," reports Walawender. ...
www.signonsandiego.com/uniontrib/20050101/news_7m1bell.html - 19k - Cached - Similar pages

Poway - California - City-Data Forum
I stick by my guns when I say "Enron-By-The-Sea". ... The Enron By The Sea is old news for us who live here and like I said before is not talked about with ...
www.city-data.com/forum/california/5510-poway.html - 68k - Cached - Similar pages

[One Sweet World]

4. troubles in SD

San Diego seems like its in a heck of a mess but not unlike other cities. I hope, with the help of the voters, it will be able to get back on the right track with a leader who appoints ethical managers. Most of those names are not elected officials, which is even more troubling. I hope someone is held accountable.

[ixion]

5. much like our entire nation is experiencing now

:grr:

[warrens]

6. I wonder which party they all belonged to

I just wonnnnnnnnder

[MindPilot]

8. unfortunately this one is bipartisan

a few of those council members are dems.

[Trillo]

7. Will wonders ever cease?

No, it's not sarcasm. When this alleged corruption hits the press, it's a wonder.

If it keeps happening, then someday conditions for younger San Diego citizens might improve, though the harm done by corruption will always exist for those it impacted.

"The noblest motive is the public good" is plastered all over San Diego city administration buildings. It's a 'nice little saying' when it's truly reflective of the leaders' motives. Uh, oh, I'm beginning to wax sarcastic.