Tags: SEC | California | school | muni | bond

SEC Says California School District Misled Muni Bond Investors

Tuesday, 08 Jul 2014 03:16 PM

The U.S. Securities and Exchange Commission charged a California school district with lying to bond investors.

The case against the Kings Canyon Joint Unified School District is the first under a new SEC initiative aimed at stemming inaccurate statements in municipal-bond offering documents. The SEC said that in 2010, the district told investors that it had properly disclosed information in previously offerings. In fact, the district failed to do so in 2006 and 2007, according to the agency.

The SEC has toughened enforcement against state and local governments that borrow in the $3.7 trillion municipal-bond market, seeking to protect investors from being harmed by inadequate or misleading disclosures.

The district, with about 10,000 students 190 miles (303 kilometers) north of Los Angeles, agreed to settle the charges without admitting to or denying the findings, the SEC said in a statement. A call to the district wasn’t answered.

The SEC said the district was wrong when it told investors buying $6.8 million of bonds in November 2010 that in the past five years it had never failed to comply with rules about giving information to investors.

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The U.S. Securities and Exchange Commission charged a California school district — the Kings Canyon Joint Unified School District — with lying to bond investors.
SEC, California, school, muni, bond
185
2014-16-08
Tuesday, 08 Jul 2014 03:16 PM
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