October 29, 2013 7:44 PM
Shea Johnson, Staff Writer
LOS ANGELES • A U.S. District Court judge will decide whether to dismiss claims by the Securities and Exchange Commission alleging that certain Victorville officials engaged in investor fraud by inflating the value of four Southern California Logistics Airport hangars.
The SEC filed a lawsuit April 29 against those involved in a 2008 municipal bond offering, saying the defendants “all knew the assessed value of the hangars was inflated and, as a result, that the tax increment and debt service ratios disclosed to investors were false.”
The hangars’ value was reported to be $65 million when it was allegedly only $27.7 million, according to previous reports.
The suit names as defendants, the city of Victorville; bond underwriter Kinsell, Newcomb & DeDios and two of its officers; the SCLA Airport Authority; and Assistant City Manager Keith Metzler, who is in charge of the airport.
All have denied the allegations. The city, airport authority and Metzler filed a joint motion on June 12 to dismiss the claims levied by the SEC.
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