Bankruptcy

A bankruptcy judge in Santa Rosa gave final approval Friday to a liquidation plan for the assets of Copia, the failed tax-exempt bond financed nonprofit wine museum in the city of Napa.

WASHINGTON — Senate Banking Committee chairman Christopher Dodd yesterday unveiled a massive draft regulatory reform bill that envisions a more independent and powerful Municipal Securities Rulemaking Board.

David Rubin, founder of CDR Financial Products Inc., and two colleagues on Friday pleaded not guilty to criminal antitrust, wire fraud and other charges stemming from an alleged conspiracy to rig bids for municipal investment agreements and derivatives contracts for kickbacks.

WASHINGTON — The Municipal Securities Rulemaking Board yesterday filed a new rule with the Securities and Exchange Commission that would allow it to collect a flat $60 “development fee” on examinations taken by municipal securities representatives and principals, as well as muni fund securities “limited principals,” to demonstrate competence in their areas of work.

BRADENTON, Fla. — Former Birmingham, Ala., Mayor Larry Langford has filed a motion for new trial on pay-to-play charges and requested that the judge set aside his conviction because, among other reasons, the jury didn’t deliberate long enough.

Voters in bankrupt Vallejo reauthorized the city’s utility user tax, saving $5.2 million of revenue for the city’s $75 million general fund.

WASHINGTON — The Securities and Exchange Commission announced yesterday that it has settled securities fraud and other charges against JPMorgan Securities Inc. and is pursuing charges against two of the firm’s former managing directors, Charles LeCroy and Douglas MacFaddin, in connection with muni bond and swap transactions done with Jefferson County, Ala.

The House Financial Services Committee yesterday voted 41 to 28 to approve a bill that would require financial advisers in the municipal market to register with the Securities and Exchange Commission and direct the Municipal Securities Rulemaking Board to have a majority of public members.

WASHINGTON — Two prominent industry groups are raising strong objections to draft changes the Municipal Securities Rulemaking Board proposed for its Rule G-37 on political contributions that would require dealer-affiliated banks and bank holding company political action committees to disclose the contributions they make to issuer officials.

WASHINGTON — Court documents filed in class action and other lawsuits by issuers’ lawyers who were briefed by attorneys at Bank of America — the one firm that is cooperating with the Justice Department’s antitrust probe in return for indemnity from criminal charges — present a disturbing picture of alleged widespread collusion between dozens of firms involved with municipal investment contracts and derivatives.

WASHINGTON — A large local school district that cannot issue the qualified school construction bonds the Internal Revenue Service allocated to it will lose the allocation unless it transfers it to the state, which can then carry it forward indefinitely, an IRS attorney said last week.

The federal grand jury's indictment against Beverly Hills-based CDR Financial Products Inc., its founder David Rubin, and current and former officials at the firm for allegedly rigging bids for investment and derivatives contracts in return for kickbacks could be just the tip of the iceberg, market participants said yesterday.

PHOENIX — The issue of how much information should be disclosed for certain variable-rate demand obligations has put the National Association of Bond Layers at loggerheads with the Securities and Exchange Commission staff for years. The ongoing dispute boiled over once again during NABL’s Bond Attorneys Workshop here this week.

BRADENTON, Fla. — Burdened by millions in unfunded pension obligations, Prichard, Ala., on Tuesday filed notice in federal court of its intention to enter Chapter 9 municipal bankruptcy — for a second time.

CHICAGO — Indiana has dropped a securities fraud complaint against Chrysler LLC after the automaker agreed to return $5.5 million of bonds that Tipton County issued to finance infrastructure for a now-abandoned transmission plant.

BRADENTON, Fla. — Larry Langford, convicted on 60 bond-related corruption felony charges late Wednesday, was removed from office as Birmingham’s mayor.

WASHINGTON — Some municipal issuers and their advocates yesterday came out swinging against the Securities and Exchange Commission.

The $700 million of bonds to finance a professional basketball arena at the Atlantic Yards project in Brooklyn could be sold and the proceeds placed into escrow as legal challenges to the project are resolved, an official at the Empire State Development Corp. said yesterday.

A federal grand jury Thursday indicted CDR Financial Products, Inc., its founder David Rubin, as well as a current and former firm official, on nine criminal counts in connection with bid-rigging tied to municipal investment agreements and other contracts such as derivatives.

SANTA ROSA, Calif. — A bankruptcy judge indicated this week that he is likely to approve a liquidation plan for the assets of Copia, the failed Napa, Calif. nonprofit wine museum.