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Citron V. California Gambling Cases

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Introduction: In modern, society people tend to credit more purchases than an individual can handle based off of their personal income and gambling also has been a continuous problem. When a person gambles and goes too deep into debt they can file for bankruptcy, but what happens when a county in one-in-a-half billion dollars in debt?

Facts: The following situation regarding a one-in-a half billion-dollar debt took place in Orange County California in the early 1990’s, but the situation began to develop in 1972. In 1972 when Robert L. Citron was elected as Orange County’s Treasurer in 1972. Citron began gambling county funds on risky investments, which paid off until 1994 when those risky investments did not pan out handing the county a one-in-a-half-billion-dollar bill owed. When the citizens of Orange County refused to agree to raise taxes, the state legislator had to step in and bailout the Orange County. The debt Orange County has accumulated and defaulted make the county and the surrounding counties undesirable for business and economic growth. Citron plead “guilty to six felony counts,” served a year under house arrest, and was fined 100,000 dollars; and the county and surrounding countries suffered financially and status (Shafritz and Borick 2011, 99). The county also …show more content…

Taking a risk can create great prospects and it does not have to be in money alone, but in job and economic opportunity. This making the county or city grow and could help the people within the county have a better standard of living. So taking the risk is justified, but the catch is everyone within the location must agree it is okay for a government official to take a risk with their tax payer. Otherwise, it would be unwise to take the risk with money that does not directly be long to the

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