{"id":5435,"date":"2013-03-16T00:00:00","date_gmt":"2013-03-16T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/03\/state_of_illinois_settles_secu"},"modified":"2022-03-10T16:36:14","modified_gmt":"2022-03-10T22:36:14","slug":"state-of-illinois-settles-secu","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/state-of-illinois-settles-secu\/","title":{"rendered":"State of Illinois Settles Securities and Exchange Commission Fraud Charges"},"content":{"rendered":"\n

Without denying or admitting to the charges, the state of Illinois has settled the securities fraud case <\/a>filed against it by the SEC. The Commission contends that Illinois misled investors about municipal bonds and the way it funds its pension obligations. There will be no fine imposed on the state. Illinois, has, however, implemented numerous remedial actions and put forth corrective disclosures related to the charges over the last few years. <\/p>\n

Per the Commission, even as the state offered and sold over $2.2 billion of municipal bonds between 2005 and 2009, it did not tell investors the effect problems with its pension funding schedule might have. Illinois is also accused of not disclosing that it had underfunded its pension obligations, which upped the risk of its overall financial condition. <\/p>\n

The regulator\u2019s order contends that Illinois had set up a 50-year pension contribution schedule in the Illinois Pension Funding Act. However, it turns out that the schedule was not sufficient to take care of both a payment amortizing the plans\u2019 actuarial liability, which was unfunded, and the price of benefits accrued during a current year. Also, the statutory plan ended up structurally underfunding the state\u2019s pension duties while backloading most pension contributions into the future. The structure caused stress on both the pension systems and Illinois\u2019s ability to fulfill its competing obligations. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Without denying or admitting to the charges, the state of Illinois has settled the securities fraud case filed against it by the SEC. The Commission contends that Illinois misled investors about municipal bonds and the way it funds its pension obligations. There will be no fine imposed on the state. Illinois, has, however, implemented numerous […]<\/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":[3922,3761,3741],"tags":[],"class_list":["post-5435","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds","category-securities-and-exchange-commis","category-securities-fraud"],"yoast_head":"\nState of Illinois Settles Securities and Exchange Commission Fraud Charges — Investor Lawyers Blog — March 16, 2013<\/title>\n<meta name=\"description\" content=\"Without denying or admitting to the charges, the state of Illinois has settled the securities fraud case filed against it by the SEC. 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