SEC continues investigation into City of Beaumont

The Securities and Exchange Commission served subpoenas for documents on the City of Beaumont, the Beaumont Financing Authority, and the City of Beaumont Community Facilities District No. 93-1, on Friday, April 22.

The subpoenas are part of an ongoing investigation relating to the use of bond proceeds, the expenditures of special tax revenues, and continuing disclosure compliance, according to a release from the City of Beaumont’s Customer Service Coordinator Ashley Starr.

The investigation came to light last year on April 22 after the FBI seized documents from Beaumont City Hall.

Starr said the City of Beaumont will continue to fully cooperate with the SEC’s investigation as it moves forward.

Some Beaumont residents were calling for an overhaul of city leadership last May, following the FBI raid.

In May of 2015, the State Controller’s Office also began investigating the financial practices and reporting of Beaumont to resolve significant differences between the city’s financial transaction reporting to the Contoller’s Office and its audited financial statements.