The Aftermath: Restitution and Recovery
Citron eventually pleaded guilty to six felony counts. However, the charges were largely to do
with a misallocation of returns between the county and other municipal entities, and Citron does
not seem to have been motivated by personal gain of any direct and obvious kind. He paid a
$100,000 fine and spent less than a year under house arrest.
If that seems a lenient sentence, then Orange Countys recovery was also swifter than might
have been expected. It had to cut back on spending and social service provision, and in 1995
and 1996 it took on massive additional debt in the form of special long-term recovery bonds to
cover its losses. But thanks to increased tax revenues from a buoyant local economy, it was able
to exit from bankruptcy in only 18 months.
The Aftermath: Restitution and Recovery
Citron eventually pleaded guilty to six felony counts. However, the charges were largely to do
with a misallocation of returns between the county and other municipal entities, and Citron does
not seem to have been motivated by personal gain of any direct and obvious kind. He paid a
$100,000 fine and spent less than a year under house arrest.
If that seems a lenient sentence, then Orange Countys recovery was also swifter than might
have been expected. It had to cut back on spending and social service provision, and in 1995
and 1996 it took on massive additional debt in the form of special long-term recovery bonds to
cover its losses. But thanks to increased tax revenues from a buoyant local economy, it was able
to exit from bankruptcy in only 18 months.
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