LOS ANGELES -- A small community in California has filed a lawsuit accusing First California Capital Markets Group Inc. and its chairman, H. Michael Richardson, of a "pattern of racketeering activity" for their roles in underwriting its Marks-Roos bonds.

Avenal, Calif., charged that San Francisco-based First California and Richardson violated federal law when they conducted a scheme to "defraud investors and to gain profits by misrepresenting or omitting material facts" relating to several bond transactions between 1989 and 1991.

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