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Four ex-officials in San Diego to pay fines to end SEC probe

October 27, 2010 |  3:55 pm

Without admitting any wrongdoing, four former employees of San Diego city government have agreed to pay fines to settle a civil complaint by the Securities and Exchange Commission involving incomplete financial disclosure on bond offerings, the SEC announced Wednesday.

The civil case against a fifth defendant is still pending, the agency said.

Former City Manager Michael Uberuaga, former auditor Edward Ryan and former Deputy City Manager Pat Frazier will each pay $25,000; former city Treasurer Mary Vattimo will pay $5,000.

The case involves the city's lack of candor to Wall Street during bond offerings in 2002 and 2003 about the growing deficit in San Diego's pension and retiree health plan. Initially the four were charged with having been part of a fraudulent scheme, but that count was thrown out.

In addition to the fines, the four promised not to violate any SEC rules.

-- Tony Perry in San Diego

 

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