SCLA

SCLA alleged to have made improper money in 2008 bond offering
December 10, 2013 10:13 AM
Shea Johnson, Staff Writer

LOS ANGELES • In two separate documents filed Monday, the city of Victorville, its airport authority and Assistant City Manager Keith Metzler denied any wrongdoing in connection with an allegedly fraudulent 2008 municipal bond offering.

The city, the Southern California Logistics Airport Authority and Metzler also are demanding a jury trial, according to their answers to a Securities and Exchange Commission complaint filed April 29.

The SEC alleges that the city, the airport authority and Metzler 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.”

According to the SEC complaint, the SCLA authority is accused of fraud in connection with the purchase or sale of securities, fraud in the offer or sale of securities and aiding and abetting security violations. The city and Metzler are accused of aiding and abetting the fraud.

Other defendants in the case, bond underwriter Kinsell, Newcomb & DeDios and two of its officers, filed their answers to the SEC complaint in June.

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