The Securities and Exchange Commission claims that even if a federal court in Alabama finds the swaps Jefferson County sold earlier this decade are not "securities-based" and therefore outside the SEC's jurisdiction, the case against two former county officials and a lobbyist should still go forward because they allegedly violated anti-fraud regulations as well as Municipal Securities Rulemaking Board rules.

The SEC, which still contends that the swaps are in fact securities-based, made its arguments late Monday in a blistering, 51-page document. In it, the commission opposes a move by former county commission chairman Larry Langford, now mayor of Birmingham, broker-dealer William Blount of Blount Parrish & Co., and state lobbyist Al LaPierre to get the U.S. District Court for the Northern District of Alabama to throw out the SEC's securities fraud charges, on the grounds that the commission has no jurisdiction over the swaps. The three claim the charges are based on "innuendo and conclusory allegations."

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