The Securities and Exchange Commission announced enforcement actions Wednesday against 71 municipal issuers and other obligated persons — including the city of Memphis as well as colleges, universities and school districts— for violations in municipal bond offerings.
The actions were brought under the Municipalities Continuing Disclosure Cooperation (MCDC) Initiative, a voluntary self-reporting program targeting material misstatements and omissions in municipal bond offering documents.
From 2011 to 2014, the 71 issuers and obligated persons sold municipal bonds using offering documents that contained materially false statements or omissions about their compliance with continuing disclosure obligations, according to the SEC.
The SEC has now filed a total of 142 actions against 143 respondents as part of the MCDC Initiative.
“The terms of the settlements reflect the credit these issuers earned for their cooperation in self-reporting pursuant to the MCDC initiative,” said LeeAnn Ghazil Gaunt, chief of the SEC Enforcement Division’s Public Finance Abuse Unit. “Because the issuers also voluntarily agreed to take steps to prevent future violations, both they and their investors have benefited from the initiative.”