January 10, 2017

The Port Authority of New York and New Jersey will admit wrongdoing and pay a $400,000 penalty to settle charges that it failed to inform bond purchasers of risks to a series of New Jersey roadway projects the bonds were being used to fund. The SEC’s order found that the Port Authority offered and sold $2.3 billion worth of bonds to investors despite internal discussions about whether certain projects outlined in offering documents ventured outside its mandate and potentially weren’t legal to pursue. The Port Authority omitted any mention in its offering documents about these risks to its ability to fund the proposed projects. SEC

Tagged in: Defendants, Misrepresentations, Securities Fraud,