Police chief, city attorney, manager among 7 charged with corruption
June 2, 2016
Riverside County prosecutors arrested seven Beaumont city officials last month including the chief of police, the city manager and the public works director for allegedly participating in an elaborate scheme that dates back more than two decades and cost taxpayers nearly $43 million. Arraignments have been continued to Aug. 19 so all seven defendants can enter their pleas on the same day. [LA Times]
The alleged scam involved the sale of municipal bonds for projects handled by an engineering group that contracted with the city. City officials also provided friends and family interest free loans from public funds.
The investigation dates back to April 22, 2015, when authorities from both the FBI and District Attorney’s office served search warrants at city hall and the home of former city manager Alan Kapanicas. Investigators also searched the offices of Urban Logic Consultants, a company that provided engineering and financial services to Beaumont for decades.
The investigation turned up evidence of an improper relationship with the city and Urban Logic Consultants, a firm that was paid with bonds funds for their engineering and financial services.
On May 17, the Riverside District Attorney’s Office charged former City Manager Alan Kapanicas, former Police Chief Francis Dennis “Frank” Coe Jr., former Economic Development Director David William Dillon, former Public Works Director Deepak Moorjani, former Planning Director Ernest Alois Egger, former Finance Director William Kevin Aylward and former City Attorney Joseph Sandy Aklufi with corruption.
Prosecutors charged Kapanicas with 33 felonies including embezzlement by a public official, misappropriation of funds and conspiracy; Coe with three counts of misappropriation of funds and conspiracy; Dillon with seven felonies including six counts of embezzlement by a public official; Moorjani with seven felonies including six counts of embezzlement by a public official and Aklufi with six felony counts of embezzlement by a public official.