LOCAL : City Treasurer Hid Mayor’s Role in Deposits at Far East, Auditor Says

The city treasurer’s office tried to cover up Mayor Tom Bradley’s involvement in placing $2 million in city funds with a bank employing him by altering a document stating the deposits were made “per the mayor,” an auditor said today.

Ed Corser, who directed the audit of Treasurer Leonard Rittenberg’s policy on time deposits, said the competitive bid sheet concerning the controversial investment was doctored following questions by a reporter about the mayor’s involvement.

Corser told the City Council’s Finance and Revenue Committee that during the early stages of an audit in June, Rittenberg continued to maintain that city investment policies were followed in the purchase of two $1-million time deposits March 22 at Far East National Bank. But when it became clear that auditors had found policy violations, Rittenberg and his staff admitted that competitive bids were added to a bid sheet, Corser said.

Police officials were asked to look at the bid sheet to determine what had been written next to the note about the Far East investment, Corser said. They determined the notation, “whited out” with correction fluid, said “per the mayor.” Additionally, a black felt marker was used to draw a line across the back to further hide the reference, he said.