August 23, 2017

The Securities and Exchange Commission today announced that the Beaumont Financing Authority, and its then-executive director have agreed to settle charges that they made false statements about prior compliance with continuing disclosure obligations in five bond offerings. Also settling charges are O’Connor & Company Securities Inc., the underwriting firm behind those offerings and its co-founder for failing to conduct reasonable due diligence on the continuing disclosure representations. The SEC’s Enforcement Division uncovered the violations as part of a review of municipal issuers and underwriters that did not voluntarily self-report under the agency’s Municipalities Continuing Disclosure Cooperation (MCDC) Initiative.  The Beaumont Financing Authority and O’Connor & Company  would have been eligible for more lenient remedies had they self-reported during the MCDC Initiative. SEC

Tagged in: Misrepresentations, Securities Fraud,