SEC chastises city for misleading about bonds

The Securities and Exchange Commission has ended its three-year investigation of City Hall financing by severely scolding the city but not assessing any fines or referring the case to the U.S. attorney for prosecution. The SEC concluded that San Diego officials violated securities regulations in 2002 and 2003 by not disclosing the city’s growing pension deficit when approaching Wall Street with five bond offerings worth $260 million. After the city acknowledged that its disclosure forms were incomplete and withdrew pending offerings, the city’s bond rating tumbled.