January 12, 1997 |
Michael Jordan does it. Paul Newman does it. Even Mario Cuomo did it. So when the tiny town of Mendota was asked to endorse a product--in this case a new type of bond financing--city officials jumped at the chance. The desperately poor farming city, the self-proclaimed Cantaloupe Center of the World, earned an $80,000 fee by lending its tax-free borrowing privileges to private developers for real estate projects hundreds of miles away--including one near Malibu.
December 20, 1997
A federal judge issued a preliminary injunction against software designed by Avant Corp., ordering the Fremont, Calif.-based company to stop marketing or selling any Cadence Design Systems Inc. software product. Avant said the order will have no impact on its customers or current products. . . . An independent reviewer will have 18 months to examine the books of municipal bond dealer Pacific Genesis Group Inc.
November 14, 1997 |
The Department of Corporations filed suit against Pacific Genesis Group Inc., claiming the San Francisco-based municipal bond firm defrauded investors in land development projects. The suit, filed by the state agency in Sacramento, charges PGG didn't provide enough disclosure to muni investors in sales of revenue bonds backed by plans to build casinos, golf courses, hotels and strip malls.
November 6, 1996 |
San Francisco-based underwriter Pacific Genesis Group Inc. has delayed a municipal junk bond sale in the face of a joint state and federal investigation of the company's recent underwritings. State officials said Pacific Genesis may have illegally sold individual investors more than $40 million of bonds in more than half a dozen offerings since December. The company's unrated municipal bond sales allegedly have raised money to illegally benefit private land developers.
September 25, 2004 |
A federal judge ordered a California real estate developer and its manager to pay $5.9 million in penalties for misleading municipal bond investors about the prospective value of a project, the Securities and Exchange Commission announced Friday. U.S. District Judge Cormac J. Carney ordered Pacific Golf Community Development and its manager, Manoucher Sarbaz, to pay $4.9 million and $980,000, respectively.
March 14, 2002 |
David Fitzgerald, former head of underwriter Pacific Genesis Group Inc., has agreed to pay $300,000 to settle securities fraud charges concerning municipal bond sales for a Southern California housing development, a lawyer for the Securities and Exchange Commission said. The SEC in December 2000 sued Fitzgerald and Alameda, Calif.-based Pacific Genesis, charging they misled investors with an inflated appraisal and other improper disclosures in selling about $70 million of bonds for the project.