This case began when the former city manager, Faustino Gonzalez, alerted the District Attorney’s Office to improprieties involving public funds.  This tip led in August 2012 to the conviction of two former Lynwood city councilmen, Louis Byrd and Fernando Pedroza.  Both were convicted of misappropriating $500,000 in public funds to illegally boost their salaries, in part by paying themselves for participating in two city agencies.

In September 2012, Pedroza was sentenced to four years in prison and Byrd to five (later reduced to four).  Both were also ordered to pay substantial restitution to the city.

Another former councilman, Arturo Reyes, had earlier pleaded guilty to grand theft and testified for the government.   In December 2012 he was sentenced to five years’ probation, 1,250 hours of community service and ordered to pay $50,000 in restitution to the city.

Prosecutors alleged that the two men misapporpriated money for personal use, and paid themselves for participating in two city agencies.