The SEC filed its first action against a state, charging
New Jersey with fraud in connection with multiple offerings of municipal bonds
dating back to 2001. In the Matter of State of New Jersey , Adm. Proc.
File No. 3-14009 (Aug. 18, 2010).
The Order for Proceedings alleges fraud in violation...
New Jersey became the first state ever charged by the SEC
for violations of the federal securities laws. They gave up without a fight and
agreed to settle the case, without admitting or denying the SEC's findings.
This matter involves the sale of over $26 billion in
The SEC settled with four of five former City of San
Diego officials in its action centered on fraud in connection with the sale of
municipal bonds. SEC v. Uberuaga , Civil Action No. 08 CV 0621 (S.D. Cal.
April 7 2008) ( previously
discussed here ). The settlements are the first to impose a civil...
UBS Financial Services, Inc. settled a bid rigging action
with the SEC related to the investment of municipal bond proceeds. SEC v.
UBS Financial services Inc. , Civil Action No. 11-CV-2885 (D.N.J. May 4,
2011). This is the Commission's second recent settlement of a case based on
The SEC charged the State of Illinois with misleading
investors when selling about $2.2 billion in municipal bonds over a four year
period beginning in 2005. The proceeding alleges violations of Securities Act
Sections 17(a)(2) and (3). In the wake of substantial remedial steps initiated
by the State...
The City of Victorville California, Assistant City
Manager Keith Metzler, deal underwriter and broker Newcomb & Dedios or KND
and its principle Jeffrey Kinsell were named as defendants by the Commission in
a suit alleging fraud in connection with the sale of municipal bonds. The city
WASHINGTON, D.C. - (Mealey's) The Securities and Exchange
Commission and the City of Harrisburg, Pa., have agreed to a cease-and-desist
order preventing the city from continuing its violation of federal securities
laws in connection with statements it made both publicly and in financial documents...
Recently, the SEC settled with the City of Harrisburg (City)
over violations of Rule 10b-5 in connection with material misstatements and omissions
made by the City in its public statements and financial information, during a
This settlement underscores the increased focus by...
The SEC brought another action against a City for
inadequate disclosure in connection with a municipal bond offering. In the
Matter of the City of South Miami, Florida, Adm. Proc. File No. 3-15329
(May 22, 2013). The action centers on a bond offering initiated in 2002 to
finance a public parking...
In two administrative enforcement actions last month, the
SEC charged two municipalities - Harrisburg, Pa. and South Miami, Fla. - with
securities fraud. These high-profile actions sounded alarm bells and
raised concerns about possible securities violations involving other state and
The SEC filed another settled financial fraud action tied to the municipal bond market which is clearly an area of increasing focus. This proceeding named as a Respondent the operator of the largest public health system in Miami-Dade County Florida. In the Matter of Public Health Trust of Miami-Dade...
Municipal bond offering cases have become an enforcement priority for the SEC. In recent months the Commission has brought a series of actions against the City of Miami, the West Clark City School District and others.
Now the agency has brought two proceedings related to bonds issued by a municipal...
The SEC settled its first action under the Municipalities Continuing Disclosure Cooperation Initiative, launched on March 10, 2014. Under the Initiative the Enforcement Division agreed to recommend settlement on favorable, standardized terms for issuers and underwriters who self-report or were already...
The SEC’s nationwide review of municipal bond disclosures yielded another enforcement action, this time against the state of Kansas. The Order centers on claims that the state failed to disclose its huge unfunded pension liabilities. In the Matter of The State of Kansas, Adm. Proc. File No. 3-16009...