The Board amended the complaint asking for less money because in the past year, the Board refinanced all the bonds it bought following Davenport’s advice, so it lost less money, according to papers filed in the Fluvanna County Circuit Court.
Fred Payne, the county attorney, said “The motion speaks for itself. I don’t comment on ongoing cases.”
On Jan. 8, Douglas Palais, attorney representing the Board of Supervisors in its lawsuit against its former financial consultant, filed the motion to amend its complaint. Besides asking for a reduced amount, the complaint admits it is not Davenport’s David Rose speaking at the Nov. 24, 2008 meeting mentioned in the original complaint.
Even though it was not Rose speaking at the meeting, it was his advice the Board heeded, the motion states.
The Board contends that by following Rose’s advice, it paid more than necessary for bonds to build the new high school.
Rose did this, the lawsuit states, to get more money.
“Rose’s materially false statements in August, September and November of 2008 were not isolated incidents,” the motion states. “Rather, they were part of a pattern of materially false statements that Rose made to the Board. He knew that interest rates were very high and he urged the Board to issue stand alone bonds and almost immediately thereafter pushed to refinance e the bond issue. In this way, Davenport and Rose could reap substantial fees on both the front end and the back end of the transaction.”
