SEC Claims Calif. City Defrauded Airport Bond Investors

Law360, Los Angeles (April 29, 2013, 4:57 PM EDT) -- Officials in Victorville, Calif., fraudulently doubled the property value of four airport hangars to $65 million in an effort  to inflate a bond request to finance their 2008 redevelopment, the U.S. Securities and Exchange Commission said in a complaint filed Monday in California federal court.

The SEC claimed the city-controlled Southern California Logistics Airport refinanced debt incurred by the construction of redevelopment projects by issuing tax increment bonds based on an inflated valuation of the airplane hangars, which the county assessor previously valued at $27.7 million. The agency also...
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