The city of San Diego and its pension system have paid close to $7 million dollars so far in legal fees to defend elected officials, pension board members and administrators involved in the city’s long running pension investigations. KPBS reporter Alison St John has more.
The Securities and Exchange Commission has cleared San Diego city’s elected officials of fraud in failing to disclose the city’s billion-dollar pension deficit to Wall Street.
Former Mayor Dick Murphy and city council members, including Scott Peters, Jim Madaffer, Brian Mainenschein and Toni Atkins, can walk away with only the label of “negligent” on their political records. But they cost the city $2.7 million in legal fees during the ongoing investigation.
Meanwhile another eleven city and pension system staff are still embroiled in three federal and state lawsuits that accuse them of charges, ranging from "felony conflict of interest" to "reckless fraud."
The city has poured another $3.6 million into their defense so far, and the pension board has spent $600,00,
The City council voted earlier this year to stop paying the legal bills for 5 city staff, including former city manager Michael Uberuaga.
But the city is obliged to continue to cover legal expenses for indemnified pension board members, including Ron Saathoff of the Firemen’s Union, who are still waiting for verdicts in the state and federal indictments that have dragged on for almost three years.
Alison St John, KPBS News.
Following is a list of legal fees the City of San Diego has paid for city officials involved in S.E.C. investigations and state and federal indictments: A: Elected Officials called “negligent” by the Kroll investigation Dick Murphy Mayor until ‘05 $519,000 Scott Peters City council until '08 $631,000 Jim Madaffer City Council until ‘08 $474,000 Toni Atkins City Council until ’08 $570,000 Brian Maienschein City Council until '08 $496,000 Ralph Inzunza City Council until '05 $10,000 Michael Zucchet City Council until 0'5 $6,000 Total $2.7 million B: City officials charged with “reckless fraud” by Federal Grand Jury, April 2008 Michael Uberuaga City manager $507,000 Patricia Frasier Dep. City manager $402,000 Ed Ryan Auditor $400,000 Terri Webster Dep. Auditor $461,000 Mary Vattimo Treasurer $441,000 City council voted in May not to continue paying their legal fees. The case continues. Total $ 2.2 million C: City Officials on the San Diego City Pension Board and Pension Board Employees Federal Fraud Indictment Feb 2006 U.S. Judge Roger Benitez ( City voted to indemnify all SDCERS board members on Nov 18 th 2002.) Ron Saathoff Pres Firefighters Assoc $298 thousand Cathy Lexin Dir., Human Resources $179 thousand Terri Webster Deputy Auditor (see above) Larry Grissom SDCERS Administrator ( SDCERS paid Lorraine Chapin SDCERS general counsel $609 ,000 in total) D. SDCERS Board members charged with felony conflict of interest by District Attorney Ron Saathoff, Cathy Lexin, Terri Webster, Mary Vattimo( Treasurer) : see above John Torres (Police, MEA rep.) $ 780,000 Sharon Wilkenson (city analyst) $ 108,000 Also(not charged) Bruce Herring (Dep City Manager) $38,000 Total of legal costs City paid $6.3 million SDCERS( City pension system)paid $609 ,000 Grand Total so far paid in legal costs $6. 9 million |
