SEC Announces Settlement with San Diego
Tuesday, November 14, 2006
The Securities and Exchange Commission has announced a settlement with the city of San Diego. The so-called “Cease and Desist Order” concludes a long term investigation into the city’s failure to disclose its pension deficit to bond holders. KPBS reporter Alison St John has more.
The long awaited settlement with the SEC requires the city to hire an indendent consultant for 3 years to monitor compliance with federal securities laws. The city will it have to pay a fine.
San Diego mayor Jerry Sanders says the agreement should help restore the city’s credibility on Wall Street.
Sanders: I’m just happy we’re settled and we can move on. I think it’s a great day to start looking forward.
City attorney Mike Aguirre who negotiated the settlement for the city, says the SEC is continuing to investigate individuals involved in the failure to disclose the deficit,
The SEC settlement cites the city for securities fraud, but under the terms of the agreement, the city does not have to admit to any wrongdoing. Alison St John KPBS News.
Aguirre: It’s the individuals who should be brought to justice and the city should be treated as a victim and to some degree we were.