Fallout In Wenatchee
A federal investigation concludes that a top city official in Wenatchee, Wash., misled investors into buying into the Town Toyota Center .
Wenatchee Executive Services Director Allison Williams violated federal securities laws by leaving out critical information and lying to investors in a statement, according to the Wenatchee World.
Nearly $41.8 million in short-term bonds were sold to build the arena in 2008, the Securities and Exchange Commission said. Williams was working closely with then-Mayor Dennis Johnson, who is referred to throughout the charging document although not by name.
The SEC also charges and fines Greater Wenatchee Regional Events Center Public Facilities District, Global Entertainment and its president Rick Kozuback, bond underwriter Piper Jaffray and its employee Jan Towery, according to the paper.
The SEC launched its investigation after Greater Wenatchee Regional Events Center Public Facilities District defaulted on debt in December 2011.
The default plunged the region into financial and political turmoil, the World said.
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