D.C. Was Cheated, SEC Says / Firm Owes Funds For Charter Schools
Source: By Lori Montgomery, Washington Post, Wednesday, April 5, 2006
Federal securities regulators yesterday accused a Maryland firm of defrauding the District of millions in federal and local funds earmarked for D.C. charter schools, saying the firm used the cash to try to prop up two failing subsidiaries. In a complaint filed in federal court, the U.S. Securities and Exchange Commission alleges that Geneva Capital Partners LLC and its owner, Eric M. Westbury of Silver Spring, obtained investments of more than $21 million from the District without telling D.C. officials that two of the city's advisers had a financial stake in Westbury's firms.