August 24, 2016

The SEC announced enforcement actions against 71 municipal issuers and other obligated parties for violations related to their municipal bond offerings.  The actions were brought under the Municipal Continuing Disclosure Cooperation Initiative which offers favorable settlement terms to municipal bond underwriters, issuers, and obligated persons that self-report certain violations of federal securities laws.  The SEC found that from 2011 through 2014, the 71 issuers and obligated persons sold municipal bonds using offering documents that contained materially false statements or omissions about their compliance with continuing disclosure obligations.  The parties settled the actions and agreed to cease and desist from future violations and to undertake to establish appropriate policies, procedures, and training regarding continuing disclosure obligations.  SEC

Tagged in: Misrepresentations, Securities Fraud,