Rizzo

When it appears that a charter city is under the control of individuals who are looting the city’s coffers for their own benefit, can the Attorney General, on behalf of the city, bring an action against the allegedly corrupt individuals, to remove the city from their control and require them to pay restitution to the city? We conclude that the Attorney General may bring such an action, and seek recovery from the corrupt individuals to the extent their acts were unauthorized.

This case concerns the City of Bell (City), a charter city with a population of 38,250. It was discovered that the chief administrative officer of the City, the assistant chief administrative officer, and five City council members were receiving salaries well in excess of the amounts paid similar individuals in similarly sized cities, and that these seven individuals went to great lengths to conceal their salaries from public knowledge. It was also revealed that the chief administrative officer had hired an individual to serve as chief of police at a high salary; the terms of his employment contract were structured so as not to disclose the true extent of his salary.

When the true salaries of…