|  | | 2012 News and Press Releases | | |
HEADLINE NEWS:
Exclusive: California City Could Face SEC Lawsuit
Ronald Grover And Tim Reid
Reuters. July 26, 2012
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EXCERPT: In a case that illustrates the mounting risks facing cash-strapped California cities and their lenders, the desert city of Victorville is bracing for possible litigation amid allegations that it improperly shifted funds among different city-controlled entities. The Victorville city council was told by its attorney last week that it faced "significant exposure to litigation" relating to a little-publicized Securities and Exchange Commission investigation into its financial practices, the city attorney acknowledged in a statement to Reuters. City attorney Andre de Bortnowsky denied that Victorville had violated any laws, and said "it almost appears as if the SEC is on a fishing expedition." The exact focus of the SEC investigation is not known. The SEC declined to comment. |
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