Editing Vernon, California (section)

=== Corruption ===
==== Corruption charges ====
On November 15, 2006, the investigation into alleged public corruption in Vernon resulted in charges against the city's mayor, [[Leonis Malburg]], as well as his wife, his son, and the former city administrator. The Los Angeles District Attorney's office had launched an investigation in April 2005 upon allegations that the city's former administrator, Bruce Malkenhorst Sr., had misappropriated public funds for personal use.

Their investigation uncovered evidence of [[voter fraud]] on the part of the ruling family, which, it was asserted, tried to keep out new residents. Leonis Malburg, who has been mayor for 50 years, claimed he lived in a small Vernon apartment in the 2800 block of Leonis Boulevard (named after his grandfather, also a mayor), when in fact he was living in upscale [[Hancock Park, Los Angeles, California|Hancock Park]], Los Angeles. His wife and son also claimed to live in Vernon, voting in Vernon elections although evidence indicated they too lived in Hancock Park. Charges against the Malburgs included [[voter fraud]], assisting unqualified voters, false registration, and [[perjury]].<ref name="press" />

Malkenhorst Sr. was charged with 18 counts of "misappropriation of public funds" for reportedly taking $60,000 of city money for personal use. His salary from the city had been $600,000. Malkenhorst at one time collected a pension of $499,674.84.<ref name=autogenerated1>{{Cite web |url=http://database.californiapensionreform.com/ |title=California Pension Reform's 'The CalPERS 100K Club'<!-- Bot generated title --> |access-date=September 4, 2010 |archive-url=https://web.archive.org/web/20100802020922/http://database.californiapensionreform.com/ |archive-date=August 2, 2010 |url-status=usurped }}</ref> In 2010, Malkenhorst received a reported $510,000 annual pension, plus health benefits, as former city administrator,<ref>{{cite news|url=https://www.wsj.com/articles/SB10001424052748704388504575419600042368596?mod=googlenews_wsj |title=The Pension Bell Tolls |work=Wall Street Journal |date=August 10, 2010 |access-date=August 17, 2010}}</ref> the most of any of the 9,111 retired California government workers receiving pensions from [[CalPERS]].<ref name=autogenerated1 /> Malkenhorst retired in 2005.{{Citation needed|date=August 2011}}

==== Corruption and disincorporation campaign ====
"With longstanding political woes, Vernon faced allegations of corruption similar to those in nearby cities such as the [[Bell, California|City of Bell]]. Although Vernon and Bell share a border in Southeast Los Angeles County, they are very different cities. Bell is a working-class, largely immigrant city with 38,000 residents. Vernon has fewer than 100 residents and is largely a business and industrial hub."<ref name=HeftyPaychecks />

==== Corruption allegations ====
Expanding legal action against excessive salaries and pensions in two southeast Los Angeles County cities, then-Attorney General [[Jerry Brown]] had subpoenaed testimony from the City of Vernon. Brown's subpoena sought testimony under oath from Vernon officials about compensation and pension benefits for six highly paid city officials, one of whom received more than $1.6&nbsp;million in a single year from the city.

According to media reports and other sources, former Vernon city administrator Eric T. Fresch was paid $1.65&nbsp;million in 2008. In 2009 O'Callaghan was paid $785,000, Burnett, $570,000, and Harrison, $800,000. Malkenhorst Jr. was paid $290,000 in 2008. Malkenhorst Sr., who also has been charged with misappropriation of public funds,<ref name="press" /> retired in 2005, and as a former employee, still receives a pension that is the highest in the state of California.<ref name="Brown">{{cite news|url=http://latimesblogs.latimes.com/lanow/2010/10/california-attorney-general-jerry-brown-issues-subpoenas-to-vernon-officials-seeks-oversight-of-bell.html |work=Los Angeles Times |title=Atty. Gen. Jerry Brown issues subpoenas to Vernon officials, seeks oversight of Bell|department=L.A. Now |date=October 21, 2010}}</ref> Malkenhorst Sr. has been convicted of fraud and is under investigation for several other charges.<ref>{{cite news|url=https://www.nytimes.com/2011/03/02/us/02vernon.html?pagewanted=2 |work=The New York Times |first=Adam |last=Nagourney |title=Vernon, Calif., May Be Undone by State |date=March 1, 2011}}</ref> Malkenhorst pleaded guilty in May 2011 to illegally using public money to pay for personal items. Prosecutors said that from 2000 to 2005, he was illegally reimbursed for personal expenses that included meals, golfing, massages, a personal trainer, and a home security system. He received three years' probation and was fined $35,000, including penalties. He was ordered to repay $60,000 in restitution.<ref>{{Cite web|url=https://www.latimes.com/local/la-xpm-2011-may-27-la-me-05-26-vernon-20110527-story.html|title=Former Vernon official pleads guilty to illegally using public money|date=May 27, 2011|website=Los Angeles Times}}</ref> He was fined $10,000 in addition to other penalties.{{citation needed|date=May 2022}} His total of $105,000 in fines will be no problem for Malkenhurst, who continues to receive the highest public pension in California: $509,664. "The law states that pensions are revoked if an elected official is convicted of a felony, but not in the case of an employee," said Brad Pacheco, a spokesman for CalPERS. Malkenhorst "would continue to receive his pension according to the law."<ref name=loophole>{{cite news|url=http://latimesblogs.latimes.com/lanow/2011/05/loophole-allows-officials-convicted-of-public-corruption-to-keep-hefty-pensions.html |work=Los Angeles Times |title=Loophole allows officials convicted of public corruption to keep hefty pensions|department=L.A. Now|date=May 31, 2011}}</ref>

In September 2010, the ''[[Los Angeles Times]]'' reported that the inquiry followed the newspaper's report that Donal O'Callaghan, then city administrator, received $243,898 in consulting payments through June 2010, through Tara Energy, Inc., the company run by his wife, Kimberly McBride. The payments were in addition to O'Callaghan's yearly salary of $380,000.<ref>{{cite news|url=https://www.latimes.com/archives/la-xpm-2010-sep-28-la-me-0928-vernon-20100928-story.html |work=Los Angeles Times |date=September 28, 2010 |first1=Hector |last1=Becerra |first2=Sam |last2=Allen |first3=Kim |last3=Christensen |title=L.A. County D.A. to probe Vernon contract with firm owned by official's wife}}</ref> He was accused of corruption for his role in obtaining city jobs for his wife.{{citation needed|date=May 2022}} O'Callaghan was indicted by a Los Angeles [[grand jury]] on three felony counts of [[conflict of interest]] and misappropriation of public funds. He pleaded not guilty to two felony counts of conflict of interest involving contracts and one of public officer crime.{{citation needed|date=May 2022}}

The ''[[Los Angeles Times]]'' reported that Eric Fresch, who now serves as a legal consultant, has been paid over $1&nbsp;million for the last four years. He was paid almost $1.65&nbsp;million in salary and hourly billings in 2008, when he was serving as both city administrator and deputy city attorney.<ref name="Vernon">{{cite news|last=Christensen |first=Kim |url=https://www.latimes.com/news/local/la-me-vernon-20100820,0,284929.story |title=Hefty paychecks for Vernon officials rival those in Bell |work=Los Angeles Times |date= August 20, 2010|access-date=August 20, 2010}}</ref> Others in Vernon received $570,000 to $800,000 in 2009. Former City Attorney Jeffrey A. Harrison earned $800,000 in 2009, and City Treasurer/Finance Director Roirdan Burnett made $570,000. In 2008, Harrison was paid $1.04&nbsp;million.<ref name="Vernon" />

In 2010, Malburg, the former mayor for fifty years, was ordered to pay more than $500,000 after being found guilty of fraud.<ref>{{cite news|last=Saavedra|first=Tony|title=Ex-Vernon official pleads guilty, avoids jail|url=http://www.ocregister.com/news/robert-302307-jail-vernon.html|newspaper=Orange County Register|access-date= May 27, 2011|date=May 27, 2011}}</ref> Prosecutors stated he claimed to live in Vernon but actually had a home in the wealthy [[Hancock Park, Los Angeles|Hancock Park]] area of Los Angeles. Leonis Malburg and his wife, Dominica, were convicted of voter fraud and other charges.{{citation needed|date=May 2022}}

State Senator [[Tony Strickland]] (R-Moorpark) proposed a bill that would divest the pensions of any public official convicted of abusing public funds. The bill, SB115, was killed in a state Senate committee. The bill drew the ire of several employee groups, including the [[AFL–CIO]], the California Professional Firefighters, and the [[California State Employees Association]]. These groups and the lawmakers who voted against the bill contended that "it discriminated against public employees relative to private employees and said such a law would really harm the innocent spouse and family of the convicted officer, who will lose their financial security."<ref name="loophole" /> Strickland stated he was "shocked" that the bill was killed. "State law affects judges and elected officials, but not people like Rizzo," he said. "The argument about the family is a weak argument that can apply to any person convicted of a crime. Families are always affected when you talk about criminals."<ref name="loophole" />