Federal grand jury issues 20-count indictment

The San Diego Union-Tribune reports:

Four former top officials in San Diego's city pension system and its current lawyer were charged Friday with wire fraud, mail fraud and conspiracy to commit wire and mail fraud in a 20-count indictment issued by a federal grand jury.

Charged were Lawrence Grissom, then the pension system's administrator; Loraine Chapin, the system's general counsel; and former board trustees Ronald Saathoff, president of the city firefighters union; Cathy Lexin, then the city's labor relations manager; and Terri Webster, then an assistant city auditor.

Assistant U.S. Attorney Shane Harrigan, who oversees the criminal division of the U.S. Attorney's Office in San Diego, said the five defendants engaged in a fraud scheme for personal, professional and financial gain. He said they also concealed information from their fellow board members about the retirement system and about proposed benefit increases, including a special benefit for Saathoff.

"The defendants had an obligation to conduct themselves in a fair and honest manner," Harrigan said.

He said the scheme gave all the defendants enhanced retirement benefits, including a "presidential leave retirement benefit" for Saathoff that was worth more than $25,000 a year.

Stealing the political way.