SEC Rules San Diego Committed Securities Fraud

Federal regulators say the city of San Diego committed securities fraud in the under funding of its pension plan. The ruling today by the Securities and Exchange Commission comes two weeks after the start of a landmark trial to roll back benefits granted in 1996 and 2002. The SEC says the city failed to disclose to investors the scope of its billion dollar pension deficit. As part of a settlement deal, the city will hire an independent consultant to ensure compliance. The SEC has yet to determine if any further action will be taken against current and former city officials. Six former pension board members are already facing trial next year for under funding the city’s pension system.