Friday, August 10, 2007

O.C. Treasurer Being Investigated for Misuse of Bankruptcy Assets

The Orange County Register reports (here) that the Orange County Treasurer is being investigated by the FBI for misuse of the assets of a bankrupt company that he was appointed to liquidate.  The funds were allegedly used to pay for, among other things, a family vacation, gym memberships, and Botox injections, in addition to paying himself large bonuses.  Another focus in the investigation is the award of a $23,000 no-bid contract to a person involved in the bankruptcy.  The Register also notes that the Treasurer spent nearly $1 million to remodel his offices that includes a new trading floor outside his personal office -- I'm not sure what the O.C. is trading these days, but it filed for bankruptcy a little over ten years ago after losing $1.6 billion when its then-Treasurer made risky investments in derivatives.  The investigation began in the District Attorney's office, and switched to the U.S. Attorney at that office's request. (ph)

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