SEC accuses Victorville officials of fraud
Source: Victorville Daily Press
The Securities and Exchange Commission on Monday filed a fraud complaint against the city of Victorville, a securities underwriting firm and others involved in a 2008 municipal bond offering.
The lawsuit, filed in the U.S. District Court in Los Angeles, claims that that those involved with issuing the bonds inflated the value of four hangars at Southern California Logistics Airport that were eventually built with money raised by the debt securities.
The suit specifically names as defendants the city of Victorville, bond underwriter Kinsell, Newcomb & DeDios and two of its officers, the SCLA Airport Authority and Victorville Assistant City Manager Keith Metzler, who is in charge of the airport.
According to the SEC complaint, the defendants “all knew that the assessed value of the hangars was inflated, and, as a result, that the tax increment and debt service ratios disclosed to investors were false.”
Read more: http://www.vvdailypress.com/articles/victorville-40126-city-fraud.html
LA Times also covered the story, in less detail (http://www.latimes.com/business/money/la-fi-mo-sec-charges-city-of-victorville-with-fraud-20130429,0,5775877.story): "SEC accuses city of Victorville, officials of fraud"
Bloomberg a slightly better one, "California City, Underwriter Misled Investors, SEC Says"
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This is the equivalent of Eric Holder arresting grandmas and grandpaws with cancer for smoking cannabis.
[font size=4]Hey SEC, act like you gotta pair!!! You want to take somebody to court? Arrest this one: [/font]
- Corrupt-ass wimps.
