Twin Rivers Unified's lawsuit at a glance
Published: Wednesday, Apr. 7, 2010 - 12:00 am | Page 14A
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The Twin Rivers Unified School District has filed a $95 million suit against California Financial Services, the investment company that advised the Grant Joint Union High School District, which Twin Rivers absorbed in 2008. The lawsuit says CFS defrauded Grant, leaving Twin Rivers with a perilous financial future. CFS denies the claims. Other allegations:
• CFS advised Grant from 1999 to 2008, during which CFS billed for $2 million in fees "by using false information to induce Grant to overburden itself with debt in the form of general obligation bonds and certificates of participation that were not justified."
• CFS misled Grant about its need for a $158 million complex in Natomas called the East Natomas Education Complex and unfunded debt obligations of $97 million. Twin Rivers says it can't demonstrate a need for the complex to qualify for state matching funds.
• CFS advised the purchase of 69 acres for the Natomas project in 2004 for $13 million, 7.4 acres
Read more: http://www.sacbee.com/2010/04/07/2660669/twin-rivers-unifieds-lawsuit-at.html#ixzz0kPn08tEh
