SEC targets ex-city officials

The U.S. Securities and Exchange Commission on Monday filed a civil complaint against five former city employees for their part in understating the city’s pension liabilities while providing information to Wall Street before prospective bond issues in 2002 and 2003.

Named in the complaint were former City Manager Michael Uberuaga, former auditor Ed Ryan, former Deputy City Manager Patricia Frazier, former Assistant Auditor Teresa Webster and former Treasurer Mary Vattimo. A similar complaint against a former outside auditor resulted in a settlement that involved a $15,000 penalty and an agreement not to violate any federal securities laws.

To satisfy the SEC disclosure requirements, the City Council has already agreed to have an outside consultant review its records for three years.

Attorneys representing the five vowed to fight the complaint in court. Tom McNamara, a former federal prosecutor representing Frazier, said that “at all times she acted appropriately and in good faith” and with the advice of outside consultants.

-- Tony Perry