A Letter to Carson Voters

By Karen Avilla

Facts Disputing Malacious Mailers

Dear Carson Citizen,

Many of you have contacted me to seek the truth behind propaganda you have received intended to mislead and deceive you. I'm writing to set the record straight and provide you with a means to obtain the facts.

Are the City's finances audited? Yes. Each year the City of Carson undergoes an extensive audit of all of its finances by an independent auditing firm hired by the City Council. Every penny is accounted for and internal controls are tested. Copies of the annual audits can be found on the City's website http://ci.carson.ca.us under the Administration--Finance tab.

Is the City Treasurer responsible for the City's financial crisis? No. The City Treasurer does not have any role in the preparation or approval of the City's overall budget. That function is a duty of the Finance Department and City Council. All reports related to revenue and expenditures are prepared by the City's Finance Department, not the Treasurer's Office. The duties of the Finance Department can be found on the City's website http://ci.carson.ca.us under the Administration--Finance tab.

Why was a State of Fiscal Emergency declared? Last year the City was faced with an unprecedented decline in revenue due to the poor economy. The City Council voted to place Measure H on the ballot last November to increase sales tax as a solution to the revenue shortfall. The declaration of a State of Fiscal Emergency was required to proceed with that process. The Treasurer had no role in the process. A copy of the City Council action can be obtained through a request of the City Manager at 310-830-7600.

Did you ever allow unauthorized use of a City computer? No, this is not true. Many public statements have been made to dispel this rumor. Unfortunately, those who continue to spread this rumor are doing so for the mere purpose of deceiving the public with no evidence to support their statement.

Did the City lose $450,000 and was it kept hidden from the public? No, this is not true. The City was a victim of a federal crime, commonly known as cybercrime, in May 2007 wherein nearly $450,000 was looted from the City's bank account. However, through my quick action in detecting the crime utilizing established internal controls, over $400,000 was recovered. The crime was immediately made public by notifying the proper authorities and many subsequent media outlets. In an effort to notify the public I participated in an interview which aired on the Channel 4 News.

Were any City employees involved in the cybercrime of 2007? No City employee, including myself, has ever been investigated by the Federal government related to this crime.

Were the cyber-criminals caught and was the public notified? Yes. In June of 2010, after remaining silent through the lengthy federal investigation, a copy of the federal indictment and further details of the crime was provided to the City Council at a public meeting. A copy of the indictment and agenda item can be viewed on the City's website under the City Treasurer tab. All five criminals indicted have plead guilty and are awaiting sentencing. A better understanding of the crime and how it was committed can be obtained by viewing the FBI website regarding cyber-thefts who were recently arrested for stealing $220 million through a similar scheme http://www.fbi.gov/news/stories/2010/october/cyber-banking-fraud/cyber-banking-fraud.

It has been an honor to serve as your City Treasurer for the past ten years and I have done so with honesty and integrity. I am hopeful that I have set the record straight. However, if you have any additional questions, I am available to you. Please feel free to call me at (310) 809-6513 or email me at karenavilla@aol.com.

Yours in service,

City Treasurer Karen Avilla