JUST TWO WEEKS AFTER THE California legislature gave Orange County a reprieve from its budget crisis, the Securities and Exchange Commission began knocking on the door. Sources say that in late September, the regulator sent out notices to people and firms involved in debt issuance in Orange County in the summer of 1994. The sending of the notices indicates that the SEC is in the last stages of deciding if anyone should be charged with fraud. A source confirms that Robert Citron, former county treasurer, has received one. Most of the Wall Street firms that underwrote the issues said to be under scrutiny, including Merrill Lynch, CS First Boston, and Rauscher Pierce Refsnes, and the county itself declined to comment. PaineWebber says it has received no notices.
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