City, SCLAA attorney says it’s a ‘waste of time’
December 18, 2013 9:50 AM
Shea Johnson, Staff Writer
LOS ANGELES • An attorney for the city of Victorville and Southern California Logistics Airport Authority called it a “waste of time” Tuesday for the Securities and Exchange Commission to argue ill-gotten gains right now in the case revolving around an allegedly fraudulent 2008 municipal bond offering.
The SEC — which filed a complaint April 29 against the city, SCLAA and Assistant City Manager Keith Metzler — most recently requested a prayer for disgorgement be reinstated against the airport authority after U.S. District Judge John A. Kronstadt tossed it aside.
A prayer for disgorgement is a form of relief that seeks restitution of ill-gotten profits from security law violators.
In an opposition to the SEC motion filed this week, attorney Terree A. Bowers labeled the commission’s request “unnecessary” and “piecemeal,” because Kronstadt had already granted the SEC until April 1 to prove improper money had been made as a result of the bond offering.
Kronstadt previously ruled that the SEC failed to present sufficient evidence to support its improper money claim, although the commission later argued that it was a misunderstanding and they did have proof as it relates to the airport authority.
“The SEC’s complaint alleges that the authority, unlike the city and Metzler, was the recipient of ($13.3 million) from the bond offering that the SEC asserts was fraudulent,” their motion reads.
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