BORGE

SEC Charges School District and Former Executive with Misleading Investors in Bond Offering

Retrieved on: 
Thursday, September 16, 2021
Security (finance), Investment, School, Securities Act of 1933, U.S. Securities and Exchange Commission, Division, District court, Sweetwater Union High School District, SEC, San Diego County District Attorney, Complaint

The order finds that Michel managed the bond offering for the district and was aware of reports showing that the projections were untenable and contradicted by known actual expenses.

Key Points: 
  • The order finds that Michel managed the bond offering for the district and was aware of reports showing that the projections were untenable and contradicted by known actual expenses.
  • Additionally, the complaint alleges that Michel signed multiple certifications falsely attesting to the accuracy and completeness of the information included in the offering documents.
  • "The SEC will continue to address deceptive conduct that prevents municipal bond investors from getting an accurate picture of the financial risks of their investments."
  • The SEC has also brought a number of recent enforcement actions against municipal advisors who provide services to school district issuers.