Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Aguirre to negotiate SEC settlement

The San Diego City Council directed attorneys in a secret meeting more than a year ago to settle with the Securities and Exchange Commission. Councilmembers wanted to cut a deal with the SEC that woul

The San Diego City Council directed attorneys in a secret meeting more than a year ago to settle with the Securities and Exchange Commission. Councilmembers wanted to cut a deal with the SEC that would include them and the city. The agency has been investigating San Diego for possible securities fraud. KPBS Reporter Amita Sharma has more.

In September 2004, the council voted to authorize a team to negotiate with the SEC with the caveat that individual council members be included in a deal.

The goal was not to leave them to negotiate their own agreement with the agency. That may be why much of the council this year rejected a plan by City Attorney Mike Aguirre to negotiate a settlement. His proposal did not include individual councilmembers. Aguirre says his idea was a fair one.

Aguirre: "If anyone engaged in illegal behavior it was the individuals not the city. The city and the taxpayers shouldn't be held accountable to the SEC and shouldn't be used as hostages to the city council."

The council eventually permitted Aguirre to negotiate with the SEC. He says he'll issue a progress report on those talks soon. Amita Sharma, KPBS News.