The public treasurer whose money-losing investments plunged Orange County into bankruptcy reportedly consulted a psychic and a mail-order astrologer for financial advice.
One piece of prophecy turned out to be true: December 1994 would be a bad month. The county declared bankruptcy on Dec. 6, 1994, after a $1.64 billion investment loss under Treasurer Robert L. Citron.
“The psychic said that December would be a bad month, but that his money worries would be over after that,” Eileen Walsh, the county’s former finance director, said in Thursday’s Los Angeles Times.
Citron’s mental state has become a crucial issue in the case. The 70-year-old has portrayed himself as fiscally unsophisticated and suffering from dementia, and has claimed that he was exploited by ambitious county officials and greedy brokers, chiefly those at Merrill Lynch & Co.
Walsh, who was fired after the debacle but has not been accused of any wrongdoing, revealed Citron’s psychic consultations to a grand jury investigating the bankruptcy.