Citron Case Study

Facts The largest municipal bankruptcy, in the history of the United States, was Orange County California, and at the center of this unforeseen catastrophe Robert Citron. Irrefutably, the financial complications that lead to the bankruptcy were the direct result of the mismanagement of public funds by county treasurer, Robert Citron. Furthermore, due to Citron risky investments with the county’s monies, he left the county in a one-and—half billion dollars’ worth of debt. According to the text, as a result, “…Citron was forced to resign in disgrace, and his foresight opponent was appointed to fill the vacant office and clean up the fiscal mess” (Shafritz and Borick, 2011p.99).
Indeed, then, this is a case study that is indicative of how Citron …show more content…
He eventually plead guilty to six felony counts and was sentenced to jail for one year in 1995, and assessed a $100,000 dollar fine. Nonetheless, the sentence was shortened to house arrest because it could not be proven that he misappropriated public funds for personal gain, although the public was outraged by the courts decision In fact, many still believe the preposterous investments were made by Citron were based on the county desperate need for revenues to pay for government services. (Shafritz and Borick, …show more content…
Many would agree, there should have been an analysis conducted of the county’s revenues and expenditures prior to the financial calamity, such was the responsibility of government on a state and local level. Likewise, state and local government could have refuse to allow Citron the authority to conduct business as if were market-orientated, but rather professionally, ethically, and with a sense of accountability. Yet, findings suggest, this was not the case in Orange County. Orange County investment disaster was indeed the result of the widespread endorsement of the market and that business practices should be applied to public and government jurisdictions (Shafritz and Borick,