An SEC Investigation into the city's finances is planned and the FBI are already on the case.

Via SignOnSanDiego:

San Diego Mayor Dick Murphy Resigns

By Jeff Dillon
SIGNONSANDIEGO

April 25, 2005

Amid demands by the city attorney that he quit and a week after being named by Time magazine as one of the three worst big-city mayors in the United States, Mayor Dick Murphy announced he will resign effective July 15...

...Murphy's announcement follows a spate of bad news for San Diego government.

The Securities and Exchange Commission is investigating city finances and allegations of securities fraud. The U.S. attorney and the FBI are conducting a criminal investigation into possible public corruption.

You stay classy, San Diego! Read the rest here.

-- MDT