U.S. SEC

Judge appointed to direct mediation efforts
November 26, 2013 5:10 PM
Shea Johnson, Staff Writer

VICTORVILLE • City officials accused of defrauding investors in a 2008 municipal bond offering were recently given an extension to file their answers to the complaint.

Meanwhile, a magistrate judge has been appointed to direct mediation efforts between the Securities and Exchange Commission and the city, Southern California Logistics Airport and Assistant City Manager Keith Metzler.

The SEC filed a suit April 29 against the city, SCLA and Metzler — along with bond underwriter Kinsell, Newcomb & DeDios and two of its officers — alleging they knew the assessed values of four SCLA hangars were inflated and “as a result, that the tax increment and debt service ratios disclosed to investors were false.”

While the bond underwriter and its officers have since filed their answers, the city, SCLA and Metzler motioned to have the case thrown out. A U.S. District judge earlier this month denied the motions, but also ruled there is not proof right now they made improper money from the alleged misconduct.

To read entire story, click here.