every year, close to 70,000 people are processed through the five facilities that make up the orange county jail in southern california. most have not been convicted but they're awaiting trial, charged with everything from minor infractions to murder. some will be released or bailed out within hours. others will call the jail home until their cases are resolved in court, a process that can take years. one inmate facing a prospect is daniel wozniak, who prior to his arrest can be found performing as an actor on the stages of various orange county playhouses. >> i want people to know i'm a good guy. i'm easy going. i enjoy long walks on the beach. i'm an aries. i just want people to know that no matter what throughout all of this, i'm really a good guy. almost everyone in my life will say so. >> what i know of wozniak is he's in custody for a double murder. a beheading was involved as well as dismemberment. >> wozniak is entering a not guilty plea in a case that made headlines in orange county. he's alleged to have murdered two friends in order to steal money out of their bank accounts. >> th

a lot. >> one of the few things albert has to look forward to from his segregation cell at the orange county-old son, jesse, who is currently housed in the county's juvenile facility. >> my son, he writes more. i send him drawings. i send him a little workout list. he was asking me for the workout list. he tells me that the workout list was whack. i figure he's young. try to give him a light one. he wrote back, talking all kinds of smack. i was like, all right. so, i wrote him a hard one. i haven't heard him yet. he's always like, write me back, dad, write back fast. i'm probably the only one that's keeps in constant contact with him, you know? i write him and let him know that i still support him from in here, you know. >> his days at the orange county jail could be coming to an end. a judge will soon decide whether or not to grant his appeal to have the gang enhancements dropped from his armed robbery charges. the decision could be the difference between ever seeing freedom again or not. >> i was childish back then. i couldn't fathom the consequences and the people i was hurting. basically

i didn't want him to get a letter with orange county jail stamped on it. i look for articles about over there, overseas. every time i see the newspaper, i see 11, 10 men, i don't know if it's my boy. it's not easy. >> rivas says she loves her son but has admittedly not been there for him over the years. she was often more focused on drugs than family. >> i was getting high one way or another from 9 years old. whether it be on weed, drinking, back then lsd, pcp. in my later years, it was coke for a while. but i've went to other drugs, heroine, meth. i've been coming here for the last ten years consistently, and it's pretty sad that i know the deputies here more than i know my own family. i know this place more than i know my son, you know. >> this is the first time rivas' son has been deployed while she's been locked up. normally she would serve her time in prison, but a judge granted her request to stay at the orange county jail so she could be closer to her son when he returns from afghanistan. >> prison is a cake walk. it's so much easier. we got it made

among other things, she runs orange county's other gated community. the orange county jail. >> it is dynamic. every day is a bit different. so you constantly have to be re-evaluating that and the folks work in the housing areas are very astute at identifying problems early on and that's the key. you're dealing with a population that doesn't want to be there, they're not necessarily there with people they like, they're probably facing some very challenging times in their lives. >> the greatest challenge for many inmates in the orange county jail is uncertainty. unlike prison inmates, who have already been convicted and sentenced for crimes they have committed, most jail inmates stand charged with crimes, and are still working their cases through the court system. the process can take years. so some try to make their jail cells home. >> this is the living room right here. we keep the books and the magazines and trash. this is the kitchen where we eat and everything. this is the bathroom, the washing machine/shower, bird bath. >> with such close quarters

. >> day-to-day management of the orange county jail in southern california is up to sheriff's deputies. some work permanently at the jail while most others rotate through, then return to street patrol. >> all right. let's line up. let's do a gear check. let's line up on the wall right here. >> a select group of deputies make up the emergency response team, a s.w.a.t.-like unit called to action when inmates refuse orders or cause an imminent threat. >> hang left. >> watch out, watch out, watch out. >> wielding a broken mop stick and other cleaning supplies, joseph etima, who has pled not guilty to a murder charge and is awaiting trial, has refused to return to his cell. >> he's upset because the hispanic inmates think he's black. he's saying he's not. he's saying he's hispanic. they don't want to program with him, so he wants out of there, and this is his way of doing it. we don't know what's going to happen once we get inside there. we don't know what the other inmates are going to do. when you go inside there, watch each other's back. handle any situation that arises. our job is not t

we're calling it the bar stool musical. >> an orange county teammate with hollywood dreams.nd more on the murder that sent shock waves through the jail. >> i grabbed him, started dragging him out. he said, no, he's not going anywhere. jobs across our country... ... scientists, technicians, engineers, machinists... ... adding nearly 400 billion dollars to our economy... we're at work providing power to almost a quarter of our homes and businesses... ... and giving us cleaner rides to work and school... and tomorrow, we could do even more. cleaner, domestic, abundant and creating jobs now. we're america's natural gas. the smarter power, today. learn more at anga.us. have given way to sleeping. where sleepless nights yield to restful sleep. and lunesta can help you get there, like it has for so many people before. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. abnormal behaviors may include aggressiveness, agitation,

>> every week 1,200 men and >> every week 1,200 men and women are arrested and booked into the orange county jail in southern california. some will be released in hours. some will be here for years but they always begin their time at the intake center located at the central jail facility. >> orange county jail system is considered a mega jail. we have the ability to house over 7,000 inmates at one time. and the challenges we face pretty much reflect, to a certain degree, the challenges the community faces with gang affiliations, with drug abuse, mental problems, issues that would be better served in hospitals but given the current situation they end up in jails. >> since the new arrivals' charges might range from minor infractions to murder, deputies must be vigilant to ensure safety. >> the uncuffing process is probably the most dangerous. that's where if they're going to do something to us, they'll do it then. once they're uncuffed they have an opportunity to attack us if they want to. it's a lost judging on our behalf to see where they're at, if they're going to try anything or not. >> br

california processes hundreds of new inmates per day, men and women who have been arrested not only by orange countyies but by officers with the 21 different city and university police departments within the county. sometimes these arrestees arrive fresh from a crime scene and deputies running the intake division might have little to no idea about their state of mind or propensity for violence. >> intake is a dangerous place. you don't know who's coming in the back door. you know what they're being charged with when they're being brought in the back door but you really don't know who these people are. >> shortly after brian james arrived at intake, he tried to strangle another inmate, an alleged sex offender to death. >> i'm not really proud of it but i don't really lose sleep over it, either. >> since the attack, the jail's gang intelligence detail has been learning a lot about james. he's a member of a notorious orange county street gang called public enemy number one, peni. >> he goes by the moniker blinky. apparently he has some kind of an eye issue so he blinks frequently, given blinky. peni bl

it was a little bit different from orange county. it did not eventually lead to a bankruptcy, but it was similar in the sense that there was an elephant in the room that investors were not told about. in this case, the pension issues with san diego. the big pension liabilities that were growing because of benefits and underfunding and so on. and really inadequate disclosure. so this went on for a couple of years without anyone fixing it. it went through the rating agencies and in continuing disclosure filings, so it permeated everything they did. it certainly appeared to be a pattern. the fcc concluded again that that recklessness standard has been met, that the evidence showed that they had knowledge of the material information and folks acted recklessly about not getting it in. so at least there is some consistency. more on the legal standard -- i think we have gone over that period yes, i think i went over that also. there were a variety of actions. many of these and up in settlements, if not almost all of them. there was an initi

before i go into the orange county report under which we're operating here. let me focus on slide 12th. this is important. there are these various context that we discussed and there is potential liability for the city, whether it is official statements, continuing disclosure filings, this broad concept of any communication to reach investors, they are all establishing liability for the city as the city. so far, the only advice that we have about your potential liability is dealing with official statements, not these other documents. i would like to keep that discussion between the liability of the city and yours as board members. orange county, this is the first major enforcement action that goes back to 1996. you probably know a lot of the details in this. some of these are reflected on slide 13. in short, the argument was that the board itself new and what the investment strategy was in the county and the county was very defendant on that strategy and repay investors. for they were borrowing short and invest in long in claims of arbitrage. this is the only

in orange county, it is in a sense of the facts or

in orange county, it is in a sense of the facts or bad facts, however you look at it. that there was this giant scheme that was risky that never got disclosed, said the sec decided that the board and all the relevant officials had to have known about the. certainly the treasurer and assistant treasurer did, and they were carrying it out, but others, and had the knowledge and acted recklessly in not making sure that got into the disclosure documents. it is somewhat of an extreme case as far as the facts go, but it set forward sort of the contemporary version of what the standards are and how they would apply to you. ok, i think we did that. so -- no, that isin

in orange county, it is in a sense of the facts or bad facts, however you look at it. that there was this giant scheme that was risky that never o

in orange county, it is in a sense of the facts or bad facts, however you look at it. that there was this giant scheme that was risky that never got disclosed, said the sec decided that the board and all the relevant officials had to have known about the. certainly the treasurer and assistant treasurer did, and they were carrying it out, but others,

as you recall, orange county -- i mean, they ended up going bankrupt, so it was quite a mess. all the bonds, i think, were paid in full. some of the payments may have been delayed, but in some sense, the conclusion of the story was that everyone did eventually get paid. however, at the time, the county was running basically a significant part of its budget off of a derivative scheme, or they were investing in very dangerous investments that were working to generate a lot of revenues -- risky investments. all well and good except that none of it was disclosed. so really, that is what got them in trouble. i mean, the investments themselves did not help because they crashed. all those investments started to go south. but what they got in trouble with with the sec was not disclosing that they had these investment schemes and that the budgets were relying on revenues from these investments. the report that was produced really started the current trend of focusing on the issuer's responsibility for the official statement, the board pose irresponsibility. the sec took a pretty hard l

as you recall, orange county -- i mean, they ended up going bankrupt, so it was quite a mess. all the bonds, i think, were paid in full. some of

the sec, in the orange county report, those of us who have to interpret it, in reading it closely, they allege that the board members new material facts and did not bring it to the attention of the financial team. how do we interpret that? what advice can give you if we are not aware of whether that is the case? is it necessary that the board members, in each case, review the complete, official statement. the answer is no. the sec as short as you can reasonably rely upon financial staff as long as you are comfortable that they have the necessary experience and qualifications. we have a series of questions and i'm going to summarize these on slides 29-31. your situation is, the sec says there are two things you can do. read the document as a whole and approve it or authorized the staff to do the approval. you have a blend of the two. what you do is approved it in preliminary form had authorized the staff to finalize it. what you should be doing is saying, are there any known existing facts, and i have used the litigation as the example, where there may be a material judgment? and you wan

we are going to touch on the orange county, the city of san diego and the state of new jersey, which is the most rece

invvstigattrs have bben comming ttis lake in orange county...hopiig to lead to the whereabouts of michellele's court.smith s the ppime suspect in he case. he deniessany wrong doing.today a judge ruled the pairs children return to smith's custody. 3"ssnging" "singing" 3&he's the x-factor &pfrom marylanddknown for his sultry voice and quick feet. feet.but.... it's... more than ...just .../ his singiin.../ that has... everyone .../ talking...// aaout...// unusuaa requestss...from fans. 3 --adblib weather tz-- [ male announcer ] are you paying more and more for cable and enjoying it less and less? upgrade to verizon fios and get tv, internet and phone for our best price online -- just $79.99 a month for two years with a 2 year agreement. this holiday deal is only for a limited time. so don't wait. get fios at this great price. act now and we'll add a special bonus -- $300 back. hurry, go to verizon.com/greatdeal. fios. a network ahead. contact the verizon center for customers with disabilities at 800-974-6006 tty/v. hurry, go to verizon.com/greatdeal. the top cootestants oo the siiggng competi