Posts Tagged ‘securities’

SEC Cracking Down on Municipal Bond Issuers/Liars?

For years now the only pieces of fiction I have been reading are either by Christopher Buckley or the auditors for Union County.  Whether it’s fudging OPEB disclosures or failing to mention raiding the Open Space Trust Fund (a $10 million annual tax that sunsets in 2020) to pay operating expenses this deceptive reporting (I mean by the auditors not Buckley) have kept investors, who heretofore have accepted as gospel that municipalities would somehow always pay back their bonds, in the dark and eventually out of luck and money.

Then came Detroit with their deceptive pension numbers and the SEC started worrying.

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SEC Legalizing Fraud

The state of New Jersey was charged by the SEC with committing fraud in its pension disclosures at around 9 am on August 18, 2010.  A few hours later the case was settled.

The state of Illinois was charged by the SEC with committing fraud in its pension disclosures at around 9 am on March 11, 2013.  A few hours later the case was settled.

And the SEC wonders why investors think its spineless.  I’m not an investor but I do wonder what this prosecution-by-kabuki accomplishes.  Let’s see how New Jersey panned out.

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