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).
The suit alleges the parties defrauded investors by illegally inflating property values in financial disclosure documents supporting the sale of bonds to finance projects at the Southern California Logistics Airport (SCLA). KND is also charged with improperly using $2.7 million in bond proceeds to keep itself afloat.
Victorville Assistant City Manager and former Director of Economic Development Keith C. Metzler, KND owner J. Jeffrey Kinsell, and KND Vice President Janees L. Williams were responsible for false and misleading statements made in the Airport Authority’s 2008 bond offering, the SEC alleged. It also charged that KND, working through a related party, misused more than $2.7 million of bond proceeds to keep itself afloat.
To read the complaint, click here: SEC Complaint