SEVERAL RECENT CASES have targeted individuals for alleged public corruption. Many of those who have been charged, convicted, or acquitted, argued in their defense that they were “just following orders,” “relying on the decision-making expertise of others,” or “just unaware of what was going on.” However, in any defense, the merit of the argument is only as good as the facts. Knowing how to advise and protect a client before, during, and after a government investigation can secure a better result.

In the last five years, the Public Integrity Division of the Los Angeles District Attorney’s Office (LADA) has brought several cases alleging misappropriation of public funds and embezzlement by public officials. California broadly defines a public official as “every member, officer, employee or consultant of a state or local government agency.”1 Public funds are used to finance government functions such as law enforcement, local city government operations, and public schools. Prosecutions for misappropriation are brought under Penal Code Section 424, which prohibits unlawful acts related to public monies, and Penal Code Section 503 or 504, either of which pro-hibits embezzlement, with Section 504 being specific to embezzlement of public funds by public officials and others.

The most well-covered recent prosecution by the LADA is the City of Bell case, in which the city manager, the assistant city manager, five sitting city council members, and one nonsitting council member were charged with multiple counts of misappropriation of public funds under Section 424 and embezzlement of public money by a public official under Section 504, primarily based upon what the prosecution argued were their overly inflated council member salaries.2

The cases of the Bell city manager and the assistant city manager were severed from the five council members, who went to trial first. The council members presented evidence to support that they had no idea that the actions of the council were illegal, that they were generally unsophisticated, and that they were relying on the decision making expertise of the city manager and assistant city manager. Continue below.

Read Full Publication