SEC enforcement

Securities lawyers and the trade group for municipal advisors agree unregistered muni advisors shouldn't still be ignorant of the law.

Irene Carroll and her company, Funding the Gap LLC, settled with the SEC Friday for not registering as municipal advisors. The SEC said Caroll knew she provided similar services as an MA.

Eliseo Sampayo was fined $20,000, half of which will go to the Municipal Securities Rulemaking Board for violating its rules.

The settlement in which Roosevelt & Cross, Inc. agreed to pay $1 million is part of a now more than two-year crackdown on "flipping" arrangements.

Details of the pending investigation are sketchy but the legislation improved the value of a then-bankrupt FirstEnergy subsidiary's municipal bonds.

The action shows the SEC's focus on the often risky charter school sector.

A judge ruled Monday that the facts of the case supported a finding the defendants broke the law.

This is the latest case to involve 'flipping' — improperly allocating bonds meant for retail customers and instead selling them to other market participants — following multiple related actions made by the SEC over the years.

Lawyers say there could be some nuanced changes on how the SEC approaches enforcement if Clayton does leave for the U.S. Attorney job.

To win a summary judgment, a party to a lawsuit must show that there is no factual dispute at issue and that the facts of the case can only support a finding in that party’s favor.