Enforcement

The Securities and Exchange Commission is asking a federal judge to allow it to submit an amended complaint that includes much more detailed charges against banker Peter Cannava in connection with an ill-fated private placement for startup video game company 38 Studios.

West Virginia’s attorney general has reached settlements totaling $1.28 million with four firms in a lawsuit that alleged they engaged in bid rigging and price fixing for municipal investments, the latest action in federal and state investigations of bid rigging in the muni market that stretch back more than ten years.

A Florida panel overseeing Opa-locka’s finances learned that the city is in default on $8.6 million in privately placed bank loans and acceleration of the debt is imminent.

Hawaii officials say they will upgrade an antiquated accounting system and take other steps to ensure that the state won’t repeat the violations it self-reported to the Securities and Exchange Commission.

The Municipalities Continuing Disclosure Cooperation Initiative was a particularly imaginative enforcement solution directed toward a very specific disclosure issue.

Piper Jaffray & Co. has agreed to pay a $12,500 fine after the Financial Industry Regulatory Authority found the firm submitted 23 disclosure documents related to primary offerings late to the Municipal Securities Rulemaking Board’s EMMA system.

An FBI corruption case is creating political discord in Puerto Rico, as one of two leading gubernatorial candidates asked for the President of Puerto Rico House of Representatives to resign.

The Securities and Exchange Commission’s settlements with 71 issuers announced on Wednesday under a voluntary continuing disclosure enforcement initiative showed “a widespread and pervasive problem” with continuing disclosure in the municipal bond market but have led to some improvements, the SEC’s enforcement chief said Wednesday.

Wells Fargo Securities and Barclays Capital have agreed to pay the Rhode Island Commerce Corp. $25.6 million in a proposed settlement of a lawsuit involving a loan to former videogame company 38 Studios, the state announced Tuesday.

A criminal case alleging two Ramapo, N.Y. officials misled investors and credit rating agencies in connection with municipal bonds would go to trial on Jan. 9 under the timeline the federal judge has put forth for the proceedings.

The Securities and Exchange Commission's settlements with issuers under its continuing disclosure enforcement initiative will not impact specific rating determinations but will be an important component of analyzing an issuer's credit fundamentals, analysts from S&P Global Ratings said in a report on Monday.

Gates Capital Corp. agreed to pay a $22,500 fine after the Financial Industry Regulatory Authority found the firm violated transaction reporting standards mandated under Municipal Securities Rulemaking Board rules.

Puerto Rico's Office of the Comptroller is conducting 24 investigations into government corruption on the island, the office reported.

The receiver for bond-financed apartments owned by Global Ministries Foundation in Tennessee has disclosed in court filings that the Securities and Exchange Commission is conducting an investigation.

One former Kildare Capital employee has been banned from the market and another was hit with a $25,000 fine and 12-month ban after FINRA found that they artificially inflated interdealer prices for municipal securities through 25 round-trip transactions.

Merrett Stierheim, a former south Florida public administrator, will determine if Opa-locka is solvent for the state-appointed panel overseeing the city’s finances.

California Treasurer John Chiang's efforts to combat pay-to-play activities among local issuers received mixed reviews from municipal bond industry participants.

A federal judge on Friday dismissed Securities and Exchange Commission charges against Peter Cannava, a banker involved in an ill-fated private placement for startup video game company 38 Studios.

The Securities and Exchange Commission is arguing that any court challenge to the constitutionality of revised Rule G-37 on political contributions can be made when an enforcement action is taken over a violation of the rule.

Rhode Island state Rep. Robert Craven Sr., a former state assistant attorney general, is calling for the release of grand jury documents and testimony on the state’s 38 Studios investigation.