The Securities and Exchange Commission finally rolled out charges in the City of SD pension mess. The Union-Trib article is posted on the main FR page, and here’s a hodgepodge of opinions on the matter (as many will have one today), as well as some straight news entries. Included are some links to the complaint and other documents:
Blogger Pat Flannery, from Red County SD…
Here is the full SEC complaint filed today alleging fraud by five former City officials in the issuance of $260 million San Diego municipal bonds. The accused officials are former City Manager Michael Uberuaga, former City Auditor and Comptroller Ed Ryan, former Deputy City Manager for Finance Patricia Frazier, former Assistant City Auditor and Comptroller Terry Webster and former City Treasurer Mary Vattimo.
Here is the SEC Press Release summarizing the case.
This, together with the SEC Cease and Desist Order under which the City is currently operating and the previously settled SEC case against former outside auditors Saiz and Calderon, should put the Mayor’s office on notice that nothing but the highest level of auditing and disclosure will be acceptable to the SEC and the public markets.
Yet amazingly that is not what we have seen over the past few months. The City Attorney had to force the Mayor and his staff to re-write the 2005 Financial Statements, which at first lacked proper disclosure of the City’s pension liability. For this the City Attorney was accused of being an obstructionist by the Mayor and the Union-Tribune.
Today’s message from the SEC should also be taken to heart by the pension administrator David Wescoe, who often seems more concerned with protecting the pension "rights" of union presidents than fulfilling his fiduciary duties to the San Diego taxpayers.
Perhaps the most interesting aspect of today’s filing is the names that are missing, like Lamont Ewell and Casey Gwinn. Today’s action by the SEC may be a tactic to get at the elected officials. The five accused will sing like canaries in court.
The SEC wants to send a strong message to municipalities (this is what this is all about) they will not let the elected officials off the hook. And two of these elected officials are currently running for City Attorney? At least Dick Murphy had the good sense to disappear.
http://www.redcounty.com/sandiego/2008/04/a-clear-message-from-the-sec/
Richard Rider, San Diego Tax Fighters…
After years of delay, the SEC has finally gotten around to charging five former high San Diego city bureaucrats with securities fraud.
All well and good. But waiting for the other shoe to fall are our city hall deer caught in headlights — our present and former San Diego city politicians.
Will the shoe fall? I doubt it. The good ol’ boy network should protect the miscreants and knaves in the bunch — professional courtesy and all that.
But these serious charges once gain casts a glaring headlight beam on our two clueless or criminal (still to be decided) city council incumbents/lawyers who are now running for City Attorney — Scott Peters and Brain Maienschein. Amazingly enough, they are getting significant support from the populace and the GOP establishment.
Apparently it’s impossible to underestimate the intelligence of either group.
Andrew Donohue, Voice of SD – "SEC Strikes Again"…
http://www.voiceofsandiego.org/articles/2008/04/08/news/01sec040808.txt
Rob Davis, Voice of SD – "Sanders: City Closer to Closure"…
http://www.voiceofsandiego.org/articles/2008/04/08/this_just_in/280sanders040708.txt
Mike Allen, San Diego Business Journal – "SEC Levels Charges Against Five Former City Officials"…
http://sdbj.com/article.asp?aID=01526423.8150036.1610570.6786886.7228263.122&aID2=123881