Enforcement

The Securities and Exchange Commission announced Monday that compliance with the final municipal advisor registration rules will not be required until July 1, the date on which the first set of municipal advisors will be required to register under the final rules.

Sentencing for convicted bid-rigger David Rubin has been pushed back until Feb. 3 and for Mark Zaino until Feb. 11, while Alexander Wright received a light sentence and James Hertz only had to pay $300 in fees.

The Municipal Securities Rulemaking Board's revenue fell 2% in fiscal year 2013 from the previous year, due to decreases in revenue from both underwriting fees and fines for rule violations, according to data included in the self-regulatory organization's annual report.

The Financial Industry Regulatory Authority has identified the suitability of the bonds of distressed municipalities for investors, as well as municipal advisor activity, as areas it will focus on in 2014.

Jefferson County, Ala., is out of municipal bankruptcy but appeals of the bankruptcy plan and criminal prosecutions will keep the county in the spotlight.

A federal judge has ruled that the Securities and Exchange Commission's fraud case against Miami, Fla. and its former budget director can continue in civil court, denying both defendants' motions to dismiss.

Former Bear Stearns banker Chol-Su "Chris" Pak was sentenced to three years of probation and a $20,000 fine for his part in a massive El Paso County corruption scandal.

The Securities and Exchange Commission's enforcement division will be very active in the muni space in 2014, experts said, with emphasis on actions against municipal officials and underwriters.

The Securities and Exchange Commission said Tuesday that it has "increased its attention to securities violations by municipalities and other participants in the market for securities of cities and other governmental issuers," but did not give any statistics.

The Financial Industry Regulatory Authority fined five firms and three individuals for violations of municipal securities requirements, including Barclays Capital Inc., which was directed to pay $200,000 for using bond proceeds to reimburse itself for membership in a lobbying group.

Robert Rizzo, former city manager of Bell, Calif., agreed on Thursday to plead guilty to federal charges of tax evasion.

A federal appeals court freed three convicted bid-riggers from prison just before Thanksgiving because the statute of limitations had run out on their alleged violations, according to the court’s newly released opinion.

The Financial Industry Regulatory Authority has fined Oppenheimer & Co. $675,000 for charging unfair prices in municipal securities transactions and for failing to have an adequate supervisory system, FINRA announced Monday.

The Government Finance Officers Association supports regulating those professionals who provide "advice" to state and local governments and believes that the Dodd Frank Act and the Municipal Advisor rule will help to ensure that those who provide advice have a fiduciary duty to their government clients.

Bank of America Corp. has agreed to settle a federal lawsuit accusing it of rigging bids for municipal bonds, according to a published report.

Former Bear Stearns managing director Roberto "Bobby" Ruiz was sentenced to two years in federal prison for his role in a massive El Paso County corruption case.

The Southern California Logistics Airport Authority of Victorville, Calif. defaulted for the fifth time on bonds issued to redevelop the airport from military to civilian use.

Three former bankers at GE Funding Capital Market Services, Inc., convicted of fraud and conspiracy for rigging municipal bond investment bids are out of prison following a Nov. 26 decision by the U.S. Court of Appeals for the Second Circuit overturning their guilty verdicts.

The sentencing for convicted bid rigger David Rubin, currently scheduled for Dec. 17, may be delayed until January at the request of his defense team.

The Securities and Exchange Commission says its case against former JPMorgan bankers Charles LeCroy and Douglas MacFaddin should go to trial.