SEC Charges Local Firm With Bid Rigging

The Securities and Exchange Commission charged that Pacific Matrix Financial Group Inc. of Sherman Oaks helped rig a bidding process to ensure that American International Group Inc. won an investment contract in 1989. The SEC alleged that Pacific Matrix took $300,000 from AIG, and helped underwriter Stifel, Nicolaus & Co. make sure that AIG submitted the winning bid to sell a guaranteed investment contract to the Oklahoma Turnpike Authority. Without issuing admission or denial, Pacific Matrix agreed to pay $50,000 to settle charges of violating securities laws in connection with the AIG payment and two other transactions. New York-based AIG, an international property and casualty insurer, was not charged with wrongdoing.