(San Diego) – Scott Peters, infamously known as the Bernie Madoff of San Diego, approved the sale of $262 million in fraudulent bonds, masking the city’s billion-dollar pension deficit from potential investors in 2002 and 2003.
As a result of his “negligent” activity, Peters left San Diegans with a $2.1 billion underfunded pension liability, which eventually resulted in San Diego’s credit rating being downgraded.
In a February 28, 2004 article, The San Diego Union-Tribune reported, “Warning that San Diego’s soaring pension costs will put ‘considerable stress’ on the city treasury, Fitch Ratings downgraded the city’s credit rating two notches yesterday while dropping the city’s fiscal outlook to ‘negative’.”
“Scott Peters left the city marred in debt and scandal when he approved the sale of $262 million in fraudulent bond disclosures that earned San Diego the unwelcomed nickname ‘Enron by the Sea’,” said Congressman Bilbray. “As a result of his ‘negligent’ activity, the city’s credit rating was downgraded, which left San Diegans on the hook to pay higher interest rates on the billions in debt he left behind. With such a reckless past with our city’s finances, imagine what Scott Peters would do to Medicare and Social Security.”