For the first time, the Securities and Exchange Commission has charged an issuer, an underwriter, and one of its officials with falsely claiming in bond documents that the issuer was meeting its secondary market disclosure obligations when it wasn't.

The issuer is West Clark Community Schools, based in Clark County, Ind. The SEC also charged the underwriter, Indianapolis-based City Securities Corp. and its senior executive vice president Randy G. Ruhl, with giving improper gifts and gratuities to other issuers and then reimbursing the firm by characterizing the expenses as bond issuance costs.

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