CBS/AP/ March 20, 2013, 3:15 PM

5 of 6 convicted in Bell, Calif., city government corruption case

Former Bell, Calif., Councilman Victor Bello and Mayor Oscar Hernandez attend a bail reduction hearing in Superior Court Sept. 22, 2010, in Los Angeles.

Former Bell, Calif., Councilman Victor Bello and Mayor Oscar Hernandez attend a bail reduction hearing in Superior Court Sept. 22, 2010, in Los Angeles. / Getty Images

LOS ANGELES Five former elected officials of the tiny California city of Bell were convicted Wednesday of multiple counts of misappropriation of public funds, and a sixth defendant was cleared entirely.

Former Mayor Oscar Hernandez and co-defendants Teresa Jacobo, George Mirabal, George Cole and Victor Belo were all convicted of multiple counts and acquitted of others.

The charges against them involved paying themselves inflated salaries of up to $100,000 a year in the city of 36,000 people, where one in four residents live below the poverty line. According to CBS Los Angeles, they told jurors the ex-council also served on fake boards that often convened for only minutes.

"It's something that Bell City Council members dreamed up solely for the purpose of stealing money from the people of Bell," prosecutor Edward Miller said.

An audit by the state controller's office previously found the city had illegally raised property taxes, business license fees and other sources of revenue to pay the salaries. The office ordered the money repaid.

The guilty findings were related to appointment of the defendants to the Solid Waste and Recycling Authority. The board was one of several that prosecutors said council members appointed each other to in order to pad their salaries.

The waste authority was never created legally and met only once in 2006, which boosted pay by about $13,000 per member.

Former Councilman Luis Artiga was found not guilty of a dozen allegations. All the defendants except Artiga had served as mayor at some point.

All were cleared of charges that they illegally tapped public money while serving on the city's Public Financing Authority.

Prosecutors brought an extensive case involving about 100 counts.

After the verdicts were read, Judge Kathleen Kennedy noted there were 10 deadlocked counts and asked the foreman if the panel had exhausted efforts to reach decisions. He said that was correct.

Kennedy nonetheless ordered more deliberations.

The current jury deliberated since Feb. 28, when one member of an original panel was replaced and the judge told the reconstituted group to start talks anew.

The trial was the first court proceeding following disclosures of massive corruption in the gritty town.

A lawyer for Hernandez said during the trial that his client was unschooled, illiterate and not the type of "scholar" who understood the city's finances.

"We elect people who have a good heart. Someone who can listen to your problems and look you in the eye," attorney Stanley Friedman said.

The scandal that rocked Bell raised the curtain on a fiefdom established by powerful former city manager Robert Rizzo. City records revealed that Rizzo had an annual salary and compensation package worth $1.5 million, making him one of the highest paid administrators in the country.

His salary alone was about $800,000 a year, double that of the president of the United States.

To fund his and other officials' salaries, prosecutors say, Rizzo masterminded a scheme to loot the treasury of $5.5 million. He and his assistant city manager, Angela Spaccia, face their own trial later in the year.

Witnesses at the former council members' trial depicted Rizzo as a micro manager who convinced the city's elected officials that they too deserved huge salaries.

He was said to have manipulated council members into signing major financial documents, particularly Hernandez who could not read what he was signing.

After the scandal was disclosed, thousands of Bell residents protested at City Council meetings and staged a successful recall election to throw out the entire council and elect new leaders.

Jurors heard more than three weeks of testimony and saw numerous documents. But when it came time to deliberate, things did not go well.

A juror who claimed she was being harassed by others on the panel acknowledged she had done research on the Internet about her jury service and discussed it with her daughter. The judge found she had committed misconduct and, after five days of deliberations, the weeping juror was dismissed from the panel.

© 2013 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
17 Comments Add a Comment
linkicon reporticon emailicon
PourpaixPourpaix says:
Look, I keep telling everybody and nobody listens! Put me in charge, and I guarantee that I will screw things up at a far lower cost to taxpayers.
reply
linkicon reporticon emailicon
NJustis4Oil says:
Strafford County, New Hampshire.

County Administrator Ray Bower demanded and self-enriched at $170,000 annual salary - he does nothing to earn that exorbitant fee against taxpayers.

He manages a nursing home.

He is a disgusting human being that has no business occupying that position in the first place. He denigrates and abuses. A depraved soul.

Every single full time non-exempt administrator is depleting the resources in that tiny state and imposing unlawful corruption through practices of intimidation and injustice from the court to the corrections facility.

Shocks the conscience.

Average salary in NH - $25,000 for citizens.
Subjugation.
reply
linkicon reporticon emailicon
ReasonableVoicesAmongUs says:
Bell, Bell Gardens -- that general area -- used to be solid middle class white bedroom communities. But the whites left as East L.A. exploded into these communities. Now the communities are beset with crime and crooked politicians. Was never that way in the old days. Fact.
reply
linkicon reporticon emailicon
Ambivalent11 says:
Latino Democrat politicians in action. California is full of them. They are concentrated in Sacramento (Alfred Villalobos stole tens of millions).
reply
linkicon reporticon emailicon
bi-theway says:
the mini privatized HOA's are no different, see "Neighbors At War: The Creepy Case Against Your Homeowners Association" (by Ward Lucas) and Meadowcreekcondos.org
reply
linkicon reporticon emailicon
raymailhot says:
When democrats get caught the party becomes elusive? Having lived in the same county as Detroit and their corrupt democrat machine, I don't see that everybody is on the same playing field.

Big difference between corrupt individuals and large groups of organized corruption!

The city of Bell isn't alone in mass corruption.
reply
raymailhot replies:
linkicon reporticon emailicon
Before the bellyaches, read up a little on this story and Detroit!
raymailhot replies:
linkicon reporticon emailicon
Please!
linkicon reporticon emailicon
tvwatcher5345 says:
looks like they also trying to get paid by the pound
reply
raymailhot replies:
linkicon reporticon emailicon
now that's funny!
linkicon reporticon emailicon
Xthes says:
Shame on you! You've betrayed the public trust. You should be put in the stockades on the public square so people can throw garbage at you to remind you of what you really are.
reply
linkicon reporticon emailicon
THALES457 says:
THE PENALTY FOR THE CRIME OF PUBLIC CORRUPTION IN ANCIENT ROME WAS TO SEW THE SOON-TO-BE-FORMER OFFICE-HOLDER INTO A BAG WITH A WILD ANIMAL AND THEN TO THROW IT INTO THE RIVER.
reply
Ardie_Aure replies:
linkicon reporticon emailicon
But these days animal cruelty won't accomplish anything.
linkicon reporticon emailicon
Ardie_Aure says:
There's not much difference between a big government conservative and a police state liberal....and whichever these defendants might be... they're fairly dumb.

I mean, there are so many legal ways to steal from the public that getting prosecuted is a matter of naivete.

Remember that big deal about Congressmen profiting from inside information? Democrats and Republicans blamed each other for that one for hours... but they're still doing it...

The entirety of US government does nothing but sell policy and legislation for campaign donations... these Bell guys are pikers compared to Boehner, Pelosi, Reid and Ryan...

...and the rest of them who know how to do their ripping off legally.
reply
raymailhot replies:
linkicon reporticon emailicon
When democrats get caught it becomes everyone? Having lived in a county with Detroit and their corrupt democrat machine, I don't see that everybody is on the same playing field.

Big difference between individuals and large groups of organized corruption!
See all 17 Comments