Facts

The Securities and Exchange Commission (SEC) filed a complaint against five former City of Sand Diego officials for federal securities law violations relating to false and misleading statements issued by Michael Uberuaga, Edward Ryan, Patricia Frazier, Teresa Webster, and Mary Vattimo in connection with the City's municipal securities offerings that raised over $260 million, continuing bond disclosures, and 2003 rating agency presentations.

The complaint alleged that defendants knew that the City faced severe financial difficulties, but nonetheless acted recklessly in failing to disclose material facts to investors and rating agencies.

Result

Four of the five former San Diego officials have reached an agreement with the SEC to settle the allegations. Defendants Uberuaga, Ryan, and Frazier each agreed to pay $25,000 in civil penalties, and Vattimo to pay $5,000. Under the stipulated agreement, the money must come from defendants' own pockets.

Other Information

FILING DATE: April 7, 2008.