Reed Royalty

$65,000,000 Measure A Bond: Fraud, Conspiracy, Misuse of Public Funds, Conflicts of Interest, Brown Act Violations

• 25% of funds improperly diverted to Fleming pet project
• District employee improperly chaired Oversight Committee meeting
• Oversight Committee disbanded with $20 million still unspent
• Oversight Committee members had financial conflicts of interest
• More Brown Act violations

On November 2, 1999, voters approved Measure A – a $65,000,000 bond measure designed to repair and modernize aging schools, bring them up to current earthquake standards, build four new schools, including a new middle school in San Juan Capistrano and a new high school, and new classrooms throughout the district to relieve overcrowding and solve problems associated with portables, which had covered so many playgrounds, the children lacked places to play.

The ballot measure (and legal bond documents) required that an “Independent” Oversight Committee be established to supervise spending of the bond proceeds. That Oversight Committee was convened on December 15, 1999 when CUSD appointed eleven (11) members. After carefully reviewing the ballot measure and minutes from the Oversight Committee meetings, it appears that CUSD officials made numerous false statements to the public and to Oversight Committee members, several committee members had financial conflicts of interest, and Brown Act violations occurred.

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