BRADENTON, Fla. — Syncora Guarantee Inc. has filed a civil suit alleging that Jefferson County, Ala., and JPMorgan “fraudulently induced” it to provide more than $1 billion in insurance coverage for the county’s nearly $3.2 billion of variable- and auction-rate sewer warrants.

The 45-page suit, filed last Thursday in New York Supreme Court, said Syncora would not have insured the warrants had it known about bribes JPMorgan paid to Jefferson County commissioners so that it would be selected as lead underwriter for the warrants and counterparty to “lucrative swap agreements,” or had it known the county could not repay the warrants.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.