Bankruptcy

The North Texas Tollway Authority board has agreed to pay legal fees for board member David Denison, who is involved in an investigation by the Federal Bureau of Investigation.

Just four days before his trial was to begin, CDR Financial Services founder David Rubin pleaded guilty on behalf of himself and his firm to three criminal counts for bid-rigging and fraud conspiracies in connection with investment contracts for muni bond proceeds and muni-related derivatives.

In the realm of muni enforcement, the new year will start with the most high-profile federal criminal trial since the mid-1990s, stemming from the Justice Department's extensive probe of bid-rigging.

The U.S. Department of Housing and Urban Development has launched an investigation into the Los Angeles Housing Authority, according to published reports.

The San Diego Association of Governments approved the $345 million purchase of a bankrupt toll road from a private operator at its Dec. 16 board meeting.

The California Supreme Court upheld a law that would allow the dissolution of the state's redevelopment agencies, but struck down a bill that would have allowed the agencies to remain in business if they were willing to pay a percentage of their income into a fund to help pay the state's education costs.

The 10-member state-appointed financial review team that will begin digging into Detroit's finances next week is a diverse mix of high-profile state officials and local community leaders and businessmen.

Louisiana Attorney General James Caldwell filed a federal suit last week in the District of Columbia to overturn a change in offshore oil royalty rules that could require the state to repay royalties and cut its anticipated future royalties.

Former Jefferson County Commissioner Larry Langford wants the U.S. Supreme Court to overturn his conviction.

Federal Bankruptcy Judge Thomas Bennett has ordered that an automatic stay associated with Jefferson County's bankruptcy will remain in effect through midnight Jan. 6.

A federal appeals court panel has twice denied a request by CDR Financial Products founder David Rubin to delay his criminal trial over alleged bid-rigging, slated to begin in January, because his wife is dying of cancer.

A federal indictment of former El Paso County, Texas, Judge Anthony Cobos implicates financial advisor Coastal Securities in a fraud scheme surrounding a $40 million bond refunding in 2007.

A Cook County Circuit Court judge last week dismissed a lawsuit challenging the Illinois State Toll Highway Authority’s steep increase in tolls that will take effect Jan. 1 to fund a $12 billion capital program.

GE Funding Capital Market Services Inc. has agreed to pay more than $70 million to settle antitrust, securities fraud, tax and other charges with the Securities and Exchange Commission and other regulators and law enforcement authorities for rigging bids on at least 328 muni bond reinvestment contracts in 44 states and Puerto Rico over five years, officials said Friday.

The Southern California Logistics Airport Authority has defaulted on more bonds after discovering it can't use reserves to make principal payments for some of its debt.

A coalition of 63 Texas school districts, including some of the largest in the state, filed a lawsuit Dec. 22 contending the current system for financing public education is unconstitutional.

El Mirage, Ariz., officials filed a formal response last week to allegations that the city improperly financed a campaign to sway voters in favor of an $8.5 million general obligation bond election.

Harrisburg has finally completed its financial audit for 2009, but the Harrisburg Authority is far from happy.

A Birmingham, Ala., agency has closed on $64 million in bank loans that were privately placed due to concern that the recent bankruptcy of Jefferson County would make it difficult to seek financing in the bond market.

A federal judge Wednesday denied a request by Citigroup to overturn a $54 million Financial Industry Regulatory Authority arbitration panel ruling in favor of investors for allegedly telling them that leveraged municipal bond arbitrage hedge funds posed little risk.