[7] In 2003 Shipione raised additional concerns that an announced $500 million City of San Diego bond sale prospectus had material omissions about the pension fund.
[12] Eventually the City Council rescinded its vote to ban investment advisors after the national press picked up coverage on the matter.
[16] Meanwhile, the United States Securities and Exchange Commission had begun investigations into the city's municipal bond disclosures regarding its pension and retiree health care obligations.
[19] The City of San Diego became the target of two federal investigations[10] following revelations in January 2004 that financial documents used to secure bonds had been filled with errors and omissions.
[20] In November 2006, the SEC entered an order sanctioning the City of San Diego for committing securities fraud by failing to disclose to the investing public important information about its pension and retiree health care obligations in the sale of its municipal bonds in 2002 and 2003.
The auditors consented to the entry of a final judgment permanently enjoining them from violating the antifraud provisions of federal securities laws and paid a civil penalty.