SEC Opposes Torrance Bid to Join Civil Suit Against Wymer

The U.S. Securities and Exchange Commission is opposing Torrance’s attempt to join the federal agency’s civil suit against investment adviser Steven Wymer, maintaining that the city’s participation would only delay and complicate the case.

The SEC’s opposition could hamper Torrance’s efforts to recover $6.2 million of city money missing in a far-reaching scandal involving Wymer, who has been charged with securities fraud.

Torrance’s attorneys say they want to join the SEC suit as a way of speeding up the search for the money. But the SEC disagrees, according to legal papers filed Monday in U.S. District Court in Los Angeles.

“An expeditious and fair resolution of the commission’s action will be hindered by the delay occasioned by intervention of investors such as Torrance,” wrote Lori A. Richards, assistant administrator for enforcement with the SEC in Los Angeles.

City officials learned in December that Torrance is one of 10 California cities missing millions of dollars in a scandal involving Wymer’s Irvine-based financial empire. Wymer, who served as an investment adviser to Torrance, has pleaded not guilty to 30 counts of securities fraud and other charges.

Torrance filed a motion Feb. 14 asking to be included in the SEC case. At the time, City Atty. Kenneth Nelson said that if the motion failed, Torrance would proceed with its own lawsuit against Wymer, as have two other cities: Loma Linda and La Quinta.

After reviewing this week’s SEC filing, Nelson said the city will file a reply next week. The matter is scheduled for a March 9 federal court hearing.

If the city is allowed into the SEC case, Nelson said, it would gain discovery rights and subpoena powers that would help it search for the missing money. Without those powers, he said, “we’re sort of running into a stone wall.”