tag:blogger.com,1999:blog-12703782.post1625957931561340878..comments2024-03-25T13:42:25.771-05:00Comments on Advance Indianaâ„¢: City Securities Fined $250,000 For Municipal Securities Offering ViolationsGary R. Welshhttp://www.blogger.com/profile/15185079937305083438noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-12703782.post-1797120295301108522015-06-23T08:07:28.736-05:002015-06-23T08:07:28.736-05:00Why did the IBJ report on this minor kerfuffle inv...Why did the IBJ report on this minor kerfuffle involving this City Securities employee who got suspended for 20 days and paid a small fine and ignore the large fine imposed by the SEC against his employer?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-12703782.post-59477018155168735332015-06-22T19:10:54.995-05:002015-06-22T19:10:54.995-05:00Bond issuer here, but not a City client.
1. Every...Bond issuer here, but not a City client.<br /><br />1. Every major u/w firm got hit with fines last week. This was a "shakedown" by the SEC going after failures to verify information supplied by the Issuer and included in the official statement. So while the Issuer gave improper information, the u/w gets nailed because they failed to verify the accuracy.<br /><br />2. EMMA is the official repository for all issuer filings and is free to the public to use. A bond investor can go to that website and verify if all of the necessary filings have been made (think of buying a house and the seller tells you that the taxes are current but you go onto the assessors website and see that they in fact are not). <br /><br />3. The SEC is going after u/w's first. Issuers will be the next to be cited and fined. <br /><br />4. Note there is no indication that any bonds are in fact in default or have defaulted for u/w's cited currently under the program. <br /><br />5. This was all brought under something called the MCDC (Municipalities Continuing Disclosure Cooperative) and some have called it the largest unfunded mandate on state and local governments. This was because every bank and bond issuer had to go back and verify they had made all required filings (for issuers) or verified that issuers had made filings that they said they did (u/w). A lot of issuers and u/w firms didn't have that capacity in house and contracted it out to accounting firms, law firms, etc... (might want to see how much $ the big law firms in town made off of this compliance last year). U/w's and Issuers were then to self-report their failings. Both were encouraged to file everything because if i as an issuer report that my 2010 bond issue had an incorrect statement, but XYZ bank doesn't report it, they are in trouble. Same goes for the reverse. Prisoners dilemma but with $ on the line. <br /><br />6. Question is did City self report or were those from Issuer submissions? Tough to tell right now. <br /><br />7. The million dollar question is yet to drop. Does a bond investor have a cause of action over a misstatement in an Official Statement that was brought to light because of MCDC? <br /><br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-12703782.post-40225338694340667442015-06-22T17:17:45.143-05:002015-06-22T17:17:45.143-05:00Wonder how much campaign money is being funneled i...Wonder how much campaign money is being funneled into Smokin Joe Hogsett's mayoral campaign as payback for him not bringing charges in the 2013 criminal case referred to him by the SEC?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-12703782.post-36678337540907798192015-06-22T16:17:19.354-05:002015-06-22T16:17:19.354-05:00The order is pretty vague.The order is pretty vague.Gary R. Welshhttps://www.blogger.com/profile/15185079937305083438noreply@blogger.comtag:blogger.com,1999:blog-12703782.post-87302966720786613942015-06-22T15:44:42.232-05:002015-06-22T15:44:42.232-05:00Do we know what statements were inaccurate? Or ar...Do we know what statements were inaccurate? Or are bond holders left in the dark along with the public?Had Enough Indy?https://www.blogger.com/profile/09673791504434523246noreply@blogger.comtag:blogger.com,1999:blog-12703782.post-63840628414466557982015-06-22T15:38:20.475-05:002015-06-22T15:38:20.475-05:00The SEC order does not indicate the municipality w...The SEC order does not indicate the municipality which the bonds were sold, if they were even sold on behalf of an Indiana municipality. Curious as to who wrote the official statements on behalf of the municipality - Umbaugh?Sir Hailstonehttps://www.blogger.com/profile/16301073859882785758noreply@blogger.com