{"id":1665,"date":"2015-06-20T13:34:14","date_gmt":"2015-06-20T13:34:14","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/06\/sec_accuses_chicago_underwrite_1"},"modified":"2022-03-22T14:25:36","modified_gmt":"2022-03-22T19:25:36","slug":"sec-accuses-chicago-underwrite-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-accuses-chicago-underwrite-1\/","title":{"rendered":"SEC Accuses Chicago Underwriters of Municipal Bond Offerings Fraud"},"content":{"rendered":"

\t\t\t\tThe SEC has filed enforcement actions against 36 municipal underwriting firms, most of them located in the Chicago area, for alleged violations involving municipal bond offerings. These are the first cases against underwriters brought under the Municipalities Continuing Disclosure Cooperation Initiative. Goldman Sachs & Co. (GS), Robert W. Baird & Co., J.P. Morgan Securities (JPM)<\/a>, Raymond James & Associates, Inc. (RJF)<\/a>, Morgan Stanley & Co. (MS), Citigroup Global Markets Inc. (C)<\/a>, Stifel, Nicolaus & Company, Inc. (SF), Piper Jaffray & Co. (PJC), Merrill Lynch, Pierce, Fenner & Smith Inc.<\/a>, and RBC Capital Markets, LLC were the firms ordered to pay the largest financial penalty of $500,000, respectively.<\/p>\n

The program offers favorable settlement terms to municipal bond issuers and underwriters that voluntarily self-report violations to securities laws, including those involving omissions and material misstatements in muni bond offering documents. In these actions, the SEC contends that between ’10 and ’14, the firms violated federal securities law when they sold muni bonds. <\/p>\n

These acts purportedly included using offering documents that omitted or included materially false statements regarding the bond issuers’ compliance with continuing disclosure duties. The firms also are accused of not doing a good enough job of detecting omissions and misstatements before making bond sales to customers.<\/p>\n

Continuing disclosure allows muni bond investors to have access to annual financial reports and other data on a continual basis. The SEC said that the issuers’ failure to comply with the duties related to continuing disclosure posed a challenge to investors wanting that information.
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The SEC has filed enforcement actions against 36 municipal underwriting firms, most of them located in the Chicago area, for alleged violations involving municipal bond offerings. These are the first cases against underwriters brought under the Municipalities Continuing Disclosure Cooperation Initiative. Goldman Sachs & Co. (GS), Robert W. Baird & Co., J.P. Morgan Securities (JPM), […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3922,3801,3760],"tags":[],"class_list":["post-1665","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds","category-sec","category-sec-enforcement"],"yoast_head":"\nSEC Accuses Chicago Underwriters of Municipal Bond Offerings Fraud — Investor Lawyers Blog — June 20, 2015<\/title>\n<meta name=\"description\" content=\"The SEC has filed enforcement actions against 36 municipal underwriting firms, most of them located in the Chicago area, for alleged violations involving — June 20, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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