FBI-Led Taskforce Investigating Alleged Public Corruption in OC

The feds have formed a taskforce to investigate public corruption in Orange County, but who or what they’re scrutinizing remains a mystery.

Speculators have a lot of scandals to choose from, according to a grand jury.

“Orange County has gained a reputation (among some) for impropriety rivaling that of New York’s Tammany Hall or Chicago under Mayor Richard J. Daley,” reads an April report from the Orange County Grand Jury. “‘From 1974-77, an eye-popping 43 Orange County  political figures were indicted, among them, two congressmen, three supervisors and the county assessor.’ Sadly, the conduct continues today at all levels of Orange County government.”

Federal Bureau of Investigation spokeswoman Laura Eimiller confirmed the taskforce was formed in April, but said it had no connection to the release of the scathing grand jury report. The taskforce includes the FBI, the Internal Revenue Service, the district attorney’s office and the U.S. Attorney’s Office.

Eimiller called the formation of the task force an administrative move, a "formalization" of inter-agency relationships that already exist. She pointed out that the FBI has had a permanent political corruption division in Orange County for years.

"We have task forces addressing most of the crimes that are in our purview," she said in a Friday phone interview. "We've always relied a lot on expertise from other agencies."

Eimiller said the FBI never comments on ongoing investigations until the grand jury hands down an indictment. It remains unclear who or what the task force is currently investigating.

Orange County Supervisor John Moorlach said he wasn’t aware the taskforce existed.

“All I can tell you is I’ve been hearing rumors, and yesterday was the first time a reporter called me and said we have confirmation,” he said in a phone interview Friday.

Moorlach referred to an Orange County Register article he said “hinted” the taskforce would be scrutinizing alleged improprieties involving some supervisors and the board of CalOptima, the county’s health care plan that covers the poor.

“I think what the OC register article is hinting at -- I think the district attorney can handle that.” Moorlach said. “I’m an open book. My campaign reports are all public -- if they need to go to my house or check my office, I’m fine with that.”

According to the grand jury report, Supervisor Janet Nguyen, while sitting on the CalOptima board, voted “to expand the size of the CalOptima Board of Directors and significantly alter the balance of power in favor of medical service providers over patients. Only two months later, the hospital industry organized a $250-per-person  campaign fundraising event ostensibly billed as a “Tribute’ to that supervisor.”

The report does not use Nguyen’s name, but she has criticized the report as incomplete and inaccurate. Other supervisors have also strongly criticized the 2012-13 jury -- the April report was one of a number of reports this year criticizing local governments and officials.

Other alleged improprieties in the grand jury report include fudged performance reviews for department managers, cronyism, favoritism and sexual harassment.

The county has had some high profile political scandals of late.

Most notably, former Sheriff Mike Carona is currently serving prison time for witness tampering, during his corruption trial. Additionally, the county’s previous CEO stepped down amid criticism of his handling of employee sexual assault allegations against former public works manager Carlos Bustamante, who awaits trial on 16 counts of sexual assault.

The Voice of OC broke the story about the taskforce this week.