June 17, 2013 9:05 AM
Jim E. Winburn, Staff Writer
VICTORVILLE • The city, airport authority, and a city official responded to the U.S. Securities and Exchange Commission’s April 29 charges of alleged fraud with motions to dismiss.
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Archive for the ‘ U.S. Securities and Exchange Commission ’ Category
April 30, 2013 9:37 PM
Jim E. Winburn, Staff Writer
VICTORVILLE • A City Councilwoman and former bond broker for the municipal airport authority blame what they called “handshake deals” for the questionable financial practices that ultimately led to this week’s fraud allegations against Victorville by the U.S. Securities and Exchange Commission.
April 29, 2013 8:40 PM
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Jim E. Winburn, Staff Writer
VICTORVILLE • 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.
Monday, April 29, 2013 – 12:30 p.m.
A shoe has finally dropped in the ongoing financial escapades of Victorville, California.
The U.S. Securities and Exchange Commission (SEC), announced in a press release Monday, that it has filed a civil fraud lawsuit against the city of Victorville and investment banking firm Kinsell, Newcomb and DeDios (KND).
April 19, 2013 10:15 PM
Jim E. Winburn, Staff Writer
VICTORVILLE • The city is now being represented by international law firm Arent Fox in connection with an ongoing investigation by the Securities and Exchange Commission, city attorney Andre de Bortnowsky confirmed Friday.
November 17, 2012 2:22 PM
Brooke Edwards Staggs, City Editor
VICTORVILLE • It’s been more than two years since the Securities and Exchange Commission first subpoenaed Victorville, requesting documentation on how the city has spent $480 million in bond funds over the last decade.
The federal agency says the action does not mean securities laws were broken in the bankrupt city. The city attorney vows cooperation with the probe.
By Abby Sewell and Phil Willon, Los Angeles Times
October 17, 2012
The U.S. Securities and Exchange Commission has opened an inquiry into the city of San Bernardino’s financial affairs as the city makes its way through a contentious bankruptcy process.
Friday, July 13, 2012 – 10:45 a.m.
It took less than forty-eight hours for the San Bernardino financial collapse to become a political football for those in county government who love to grandstand.
We’re gonna investigate! Yes sir we are!
As a matter of fact, we already have an ongoing investigation!
Thursday, July 12, 2012 – 12:05 p.m.
The latest growing scandal involving major money center banks, and their complete lack of respect for rules, involves allegations that Barclays, Citigroup, UBS, JPMorgan Chase and others, manipulated the London Interbank Offered Rate (LIBOR) from 2005 to 2008.
LIBOR is the rate banks charge each other for short-term loans.
The city of Victorville paid $375,000 for this property in 2007, with plans to build a 500-megawatt power plant in the area. The home sits abandoned and the power plant is unbuilt, another failed project that has contributed to Victorville’s financial disaster, according to a grand jury report. (Irfan Khan, Los Angeles Times / June 5, 2012)
By Phil Willon, Los Angeles Times
July 8, 2012
Victorville hoped to strike it rich with a new hybrid gas and solar power plant near the old George Air Force Base, buying up homesteads for the site amid the High Desert’s real estate boom.
The city shelled out $375,000 alone to Chris Massey and his family in 2007 to buy a tiny house plopped on five desolate acres of scrub and Joshua trees — 10 times the property’s assessed value.
Sunday, July 1, 2012 – 10:00 a.m.
One shoe has finally dropped in the long-running saga over Victorville’s finances.
On Friday, the San Bernardino County Grand Jury issued a scathing report on its findings that politicos and bureaucrats, past and present, plundered the city’s coffers in order to aid certain benefactors.
In other words, all the rules went out the door.
June 29, 2012 1:11 PM
Brooke Edwards Staggs
The San Bernardino County Grand Jury issued a 100-page report Friday blasting Victorville for decisions that have jeopardized the city’s solvency, including mishandling bond funds, losing track of $13 million and potentially breaking the law by financing failed energy ventures with restricted money. Read more about the report here and read the entire report here.
Here are the five areas of concern cited by the grand jury. Click on the headlines below each section to read related background stories:
FBI, SEC investigations continue
June 29, 2012 1:03 PM
From Staff Reports
VICTORVILLE • The San Bernardino County Grand Jury issued a 100-page report Friday blasting Victorville for decisions that have jeopardized the city’s solvency, including mishandling bond funds, losing track of $13 million and potentially breaking the law by financing failed energy ventures with restricted money.
Findings from an unprecedented three-year Grand Jury investigation into allegations of fiscal mismanagement and corruption in Victorville will be released Friday. The city is also under investigation by the FBI and the Securities and Exchange Commission, official sources say.
Joe Nelson, Staff Writer
Posted: 06/26/2012 01:19:33 PM PDT
Findings from a three-year grand jury investigation into allegations of fiscal mismanagement and corruption in Victorville are expected to be released Friday.
The grand jury concluded its unprecedented investigation in April, but Victorville City Manager Doug Robertson, who reviewed the report, said he signed a confidentiality agreement and cannot discuss any of the findings until its release to the public Friday.
By Marc Lifsher
April 23, 2012, 1:10 p.m.
SACRAMENTO — Federal securities regulators sued a former chief executive and a former director of the country’s largest public pension fund, accusing them of scheming to defraud an investment firm of more than $20 million in fees.
The Securities and Exchange Commission filed the lawsuit Monday against the former CEO, Federico Buenrostro Jr., and the former CalPERS board member, Alfred J.R. Villalobos, alleging that they fabricated documents provided to Apollo Global Management in New York.
Council also to view changes to agenda policy
April 17, 2012 8:54 AM
From Staff Reports
VICTORVILLE • The two-year Securities and Exchange Commission investigation, twice-delayed water service hikes and proposed changes to a controversial policy about how issues end up on the agenda to begin with are all before the Victorville City Council Tuesday night.
During the closed session meeting starting at 5 p.m., before the regular session, the council will discuss the ongoing SEC investigation. The agency has been looking into Victorville’s bond expenditures since summer 2010, recently issuing a new subpoena and conducting interviews with city staff and officials.
Agency investigates relationship between broker, Inland Energy VP
March 18, 2012 10:17 AM
Brooke Edwards Staggs
Editor’s Note:
This is part one in a two-part series looking at the SEC’s investigation into the city of Victorville. See Monday’s Daily Press for part two, looking at whether bond funds were used to make campaign contributions.
VICTORVILLE • As part of its two-year probe into Victorville, the Securities and Exchange Commission is investigating whether there were hidden financial ties between the man who led the charge on the city’s largest energy venture and the man who’s brokered more than $400 million in taxpayer-supported debt on behalf of the city.
Another city official called to testify
February 21, 2012 1:13 PM
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Brooke Edwards Staggs, City Editor
VICTORVILLE • The Securities and Exchange Commission is subpoenaing more information from Victorville and has interviewed another city official as part of its two-year investigation into how bond money was spent.
Toni Momberger, Staff Writer
Posted: 02/17/2012 03:10:02 PM PST
Document: Complaint for Violations of the Federal Securities Laws
On Oct. 18 The Securities and Exchange Commission filed a complaint with the U.S. District Court against Charles Copeland and his businesses alleging several counts of fraud and breach of fiduciary duty.
Joe Nelson, Staff Writer
Posted: 01/07/2012 02:42:29 PM PST
Victorville City Manager Doug Robertson said the city’s November default on bond payments totaling $10.6 million has not prompted an inquiry from a federal agency that has been investigating the city’s bond debt for the last two years.
In an e-mail, Robertson said investigators from the Securities and Exchange Commission (SEC) has not made any inquiries about the defaults thus far, but he is expecting they will.
By David Glovin and Joshua Gallu
December 16, 2011 9:58 AM PT
Daniel Mudd, the former chief executive officer of Fannie Mae, and Richard Syron, ex-CEO of Freddie Mac, were sued by the U.S. Securities and Exchange Commission for understating by hundreds of billions of dollars the subprime loans held by the firms.
Friday, November 25, 2011 – 10:30 a.m.
Victorville can’t pay its debt service payments, while some of the city’s leaders want area voters to place them into higher office.
Laugh out loud!
Monday, October 31, 2011 – 03:30 p.m.
As predicted the U.S. Department of Justice has a task force examining the financial situation of Victorville, California.
April 19, 2011 7:24 PM
Brooke Edwards
VICTORVILLE • Five city officials have been subpoenaed for testimony by the San Bernardino County Grand Jury as part of a two-year investigation into Victorville’s finances and management practices.
City finances earn poor grade
Joe Nelson, Staff Writer
Posted: 03/19/2011 03:44:25 PM PDT
VICTORVILLE – Ongoing losses, net asset deficiencies in major funds and a lack of liquidity has put this city on the brink of insolvency, an auditor has determined.
Sunday, March 13, 2011 – 11:55 a.m.
Last modified: March 13, 2011 – 08:10 p.m.
It appears a chapter 9 municipal bankruptcy filing is in the cards for the city of Victorville.
A city whose treasury has been plundered by questionable and possibly illegal business dealings.
Sources indicate the city council has been made fully aware of the situation, and a filing is most likely inevitable.
March 12, 2011 1:00 PM
Brooke Edwards
VICTORVILLE • An independent auditor is questioning whether Victorville can stay solvent over the next three months after discovering tens of millions of dollars in internal loans that were never approved, three funds that are $180 million in the hole and dwindling cash reserves.
Tuesday, March 8, 2011 – 06:30 p.m.
Last Modified: March 9, 2011 – 12:35 p.m.
Information is starting to spill out as federal agents and prosecutors bear down on political and governmental activities in San Bernardino County.
And what is being said is alarming.
No charges have been filed
March 06, 2011 9:00 AM
Brooke Edwards
VICTORVILLE • The FBI has joined the Securities and Exchange Commission and the San Bernardino County grand jury in investigating Victorville’s finances and practices, marking the first probe that’s clearly focused on uncovering potential criminal activity within the city.
At least one local person has been questioned by the FBI in recent weeks regarding Victorville issues.
By Dakin Campbell
Feb 26, 2011 11:07 AM PT
Bank of America Corp. and Wells Fargo & Co., the largest U.S. mortgage firms, said they may face fines or enforcement actions from regulators amid investigations into foreclosure procedures.
Though few have paid attention, the Financial Crisis Inquiry Commission’s conclusions clearly point out the failures by regulators — and the (un)regulated — to rein in excesses that predictably led to ruin.
By Michael Hiltzik
February 6, 2011
The public reaction to major man-made disasters always follows the same life cycle: First come shock and outrage, then demands for investigation and retribution against the guilty, and finally resignation about God’s mysterious ways, fatigue and ennui.
Wednesday, February 2, 2011 – 05:45 a.m.
Will the City of Victorville ever learn from its mistakes?
For a city being investigated by the San Bernardino County Grand Jury, U.S. Securities and Exchange Commission and the U.S. Citizenship and Immigration Service, it doesn’t look like it at this point.
By MARY WILLIAMS WALSH and LOUISE STORY
Published: January 7, 2011
Federal regulators are investigating whether California violated securities laws and failed to provide adequate disclosure about its giant public pension fund, according to a person with knowledge of the investigation.
Wednesday, December 29, 2010 – 12:40 p.m.
During a usually slow news cycle it’s Victorville politics to the rescue.
Victorville has its share of trouble coming on the horizon. Primarily due to financial mismanagement.
But this past week has been very interesting. Politically speaking that is.
McEachron
Federal, county investigations cost Victorville $300,000
December 25, 2010 1:43 PM
Brooke Edwards
VICTORVILLE • The cost and strain of responding to lengthy investigations by two federal and one county agency has newly seated Mayor Ryan McEachron calling for an end to the inquiries — though he first requested the forensic audit by the San Bernardino County Grand Jury.
The cost of responding has topped $300,000 in staff time and attorney fees, city officials estimated.
By Evan Halper, Los Angeles Times
November 16, 2010|8:48 p.m.
Reporting from Sacramento —
State prosecutors are preparing for possible action against another financial firm that does business with California’s scandal-tarnished pension fund, newly disclosed documents show.
Michael J. Sorba, Staff Writer
Posted: 11/14/2010 04:52:38 PM PST
VICTORVILLE – Federal and local investigators continue to request stacks of documents from the city as part of ongoing probes into bond sales and financial records.
Requests for information have become so intensive that three full-time workers are dedicated to processing them, said Councilman Ryan McEachron.
The co-founder of the mortgage lender is accused of civil fraud and insider trading. His trial is set to begin Tuesday.
Angelo Mozilo
A settlement could aid Angelo Mozilo in other cases arising out of the collapse. (Susan Walsh / Associated Press / March 7, 2008)
.
By E. Scott Reckard and Stuart Pfeifer, Los Angeles Times
October 15, 2010
Just days before his trial was to begin, Countrywide Financial Corp. co-founder Angelo R. Mozilo was in serious negotiations late Thursday to settle the government’s civil fraud and insider trading case against him, according to people familiar with the situation.
Press Release Source: CVB Financial Corp. On Thursday September 9, 2010, 10:00 pm EDT
ONTARIO, Calif.–(BUSINESS WIRE)–CVB Financial Corp. (NASDAQ:CVBF – News) – The purpose of this press release is to update our shareholders on recent third quarter developments with the company that are significant.
Feds: City to stop destroying documents
September 01, 2010 5:36 PM
Brooke Edwards
VICTORVILLE • The Securities and Exchange Commission has ordered the city not to destroy or alter any records, as the federal agency’s investigation into Victorville’s bond offerings moves forward.
The SEC also issued subpoenas for three Victorville officials to answer questions under oath related to those bonds. As of Wednesday evening, spokeswoman Monica Petersen said they were still waiting on word from the city’s personnel attorney as to whether they could release the names of those who were sent notices of deposition, concerned “it could be seen as stigmatizing.”
By Charlie Gasparino
Published August 25, 2010
An all-out war has broken out between Citigroup CEO Vikram Pandit and a prominent securities analyst who is saying that the big bank may be cooking the books by inflating its earnings through an accounting gimmick, FOX Business Network has learned.
The analyst, Mike Mayo, of the securities firm CLSA, has been telling investors that Citigroup (C: 3.75 ,0.00 ,0.00%) should take a writedown, or a loss on some $50 billion of “deferred-tax assets,” or DTAs. That is a tax credit the firm has on its financial statement that Mayo says is inflating profits at the big bank by as much as $10 billion.
Darius Anderson
Money & Company
August 27, 2010 | 4:24 pm
Darius Anderson is a well-known player in the high-powered and often-overlapping worlds of California business, lobbying and politics.
No stranger to campaign finance, he’s raised millions of dollars for candidates over the years, mostly for Democrats. Citing that expertise, state Fair Political Practices Commission Chairman Dan Schnur appointed Anderson this week to a prestigious panel that will examine overhauling state campaign finance disclosure laws.
According to testimony in an SEC lawsuit, the Calabasas firm’s co-founder fostered the practice of making exceptions to its lending standards.
By E. Scott Reckard, Los Angeles Times
August 25, 2010
The late “Tonight Show” announcer Ed McMahon was far from the only person to get a special mortgage thanks to Countrywide Financial Corp. co-founder Angelo Mozilo.
Mozilo approved so many loans that fell outside company guidelines that at least one high-ranking Countrywide executive questioned them, drawing heated responses from Mozilo, according to testimony filed in a Securities and Exchange Commission lawsuit.
Federal agency serves subpoena on city
August 18, 2010 6:12 PM
Brooke Edwards
VICTORVILLE • The federal Securities and Exchange Commission is investigating Victorville and has sent a subpoena to City Hall calling for records related to the city’s $480 million in bond debt.
“We are trying to determine whether there have been any violations of the federal securities laws,” a statement from the SEC informed the city. “The investigation and the subpoena do not mean that we have concluded that you or anyone else has broken the law. Also, the investigation does not mean that we have a negative opinion of any person, entity or security.”
News of SEC inquiry spooks investors
Rebecca U. Cho, Staff Writer
Created: 08/10/2010 05:33:11 PM PDT
The stock price for Ontario-based CVB Financial Corp. sank 22 percent Tuesday, a day after the company disclosed it was being investigated by the Securities and Exchange Commission investigation.
The SEC subpoenaed the institution July 26for information regarding its lending practices, CVB Financial said Monday in its regulatory filings.
July 1, 2010 | Chase Davis
The Securities and Exchange Commission yesterday voted to restrict campaign contributions from money managers seeking business from public pension funds and restrict the hiring of middlemen to solicit pension business, following several episodes of apparent corruption in California and elsewhere.
Under the new rules, which were approved unanimously, investment managers would be prohibited from working with a public pension fund for two years if they make a campaign contribution to an official with influence over the fund.
Darrell Issa
By PE Politics
on April 23, 2010 5:12 PM
Inland Rep. Darrell Issa’s call for an investigation into the timing of the government lawsuit against Goldman Sachs has been answered.
During a Fox News interview about the unrelated Securities and Exchange Commission porn scandal, Inspector General David Kotz announced today that he would launch a probe examining the SEC’s decision to move forward with action against Goldman Sachs.
By PE Politics
on April 23, 2010 8:22 AM
Days after Inland Rep. Darrell Issa issued a formal request for information about the timing of the Securities and Exchange Commission’s lawsuit against Goldman Sachs, a different kind of information related to the goings on within the agency has emerged.
As reported late last night by the AP, the SEC’s inspector general has issued a new report concluding that senior commission staffers spent hours surfing pornographic websites as the nation’s economy faltered.