Victorville

August 06, 2013 6:50 PM
Jim E. Winburn, Staff Writer

VICTORVILLE • The Security and Exchange Commission recently filed a motion to oppose a defense request to dismiss certain claims in the U.S. District Court lawsuit over alleged investment fraud by city officials.

The SEC filed a motion last week to deny the defendants’ request to dismiss three claims of the federal complaint against the city of Victorville, the Southern California Logistics Airport Authority, and Assistant Executive Director of the Airport Authority Keith Metzler.

The SEC is arguing that the defendants “all had an active role and knowledge of these inflated and misleading values in the April 2008 official statement.” The official statement refers to the allegedly overtstated values of the four SCLA hangars in an April 2008 bond offering.

The city, airport authority and Metzler filed a motion in June to dismiss the first, second, and seventh claims for relief in the SEC’s April 29 lawsuit.

The defendants all requested the claims to be dismissed “on the grounds that the complaint fails to state a claim for these violations,” according to the motions filed.

The SEC’s motion said that the defendants are seeking to dismiss the SEC’s claims for relief by focusing their arguments on “materiality and Metzler’s role.”

“The SEC’s complaint more than sufficiently alleges that the (SCLA) Authority defrauded investors and that Metzler and the city aided and abetted those violations,” federal attorneys said in the motion.

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