A lawyer representing several San Jose Labor organizations has filed an SEC complaint against the City of San Jose and its Mayor, Chuck Reed. The complaint accuses the mayor of misleading the public in two bond sales last year.
Lawyer Christopher Platten, who represents the Police, Fire, and Engineers unions says that the Mayor’s failure to disclose the worst-case estimates of $650 million annual pension cost during the sales of two bonds amounts to a violation of Securities and Exchange Commission rules.
A consultant working for the unions, John Saggau, is reported to have asked the question: “Did he deceive the public or did he deceive potential bond holders?”
Mayor Reed responded saying it was another baseless claim levied against him to distract from the ongoing dialogue.
From KTVU News:
In the latest salvo in a battle over San Jose employee pension reform plans, a lawyer for three unions has filed a complaint against Mayor Chuck Reed and the city with the U.S. Securities and Exchange Commission.
The complaint was filed Monday by Christopher Platten, a lawyer for the San Jose Police Officers’ Association, San Jose Firefighters Local 230, and the International Federation of Professional and Technical Engineers Local 21.
Read the full article here.