5 former San Diego officials face SEC lawsuit

/ Source: The Associated Press

The Securities and Exchange Commission has filed a civil complaint against five former San Diego city officials over a 2002 pension scandal that left the city's finances in disarray.

The complaint filed Monday in federal court in San Diego says the officials knew the city was underfunding its pension obligations and failed to disclose the extent of its problems to bond-rating agencies or to the investors who bought city bonds in 2002 and 2003.

The complaint was filed against former City Manager Michael Uberuaga, a former deputy city manager, a former auditor, a former assistant auditor and a former treasurer.

The SEC has already sanctioned the city of San Diego for securities fraud for failing to disclose its pension woes to investors.