SEC enforcement

The orders issued Dec. 23 bring to a close the Securities and Exchange Commission enforcement action against Navnoor Kang, Deborah Kelley and Gregg Schonhorn.

In response to the SEC's complaint, the former chief business officer of a California school district said he acted in good faith.

A steep decline in school district reserves drove a two-notch downgrade and has drawn a subpoena from the Securities and Exchange Commission.

Securities and Exchange Commission Chair Jay Clayton seemed noncommittal on a proposed exemptive order for municipal advisors.

Though enforcement cases slightly decreased this past year, lawyers say the Securities and Exchange Commission is just as aggressive as ever.

“The channel doesn’t matter in terms of responsibility for the information,” said SEC Chairman Jay Clayton.

Data on default rates shows that while there has been improvement in consistency between corporate and muni ratings, there is still work to be done.

The SEC brought four civil lawsuits and 10 stand-alone administrative proceedings, according to its annual report released Wednesday.

The committee's discussion will begin with a municipal issuers’ structured disclosures discussion, featuring issuers, regulators, and others.

Baker McKenzie created a new group to integrate regulation and enforcement in a move to align with the Securities and Exchange Commission's practices.

The proposed settlement, filed in federal district court in New York late last week, would bring to a close the SEC’s case against Navnoor Kang, Deborah Kelley and Gregg Schonhorn.

In the SEC inquiry, along with a separate FAA investigation, regulators are trying to determine if airport revenues were misspent.

Municipal market participants got some comfort about their fraud liability if they act in good faith on interim financial disclosures.

The Securities and Exchange Commission issued a non-public letter to the city of Atlanta last week, prompting a possible investigation into its airport.

Ernesto Lanza will be leaving his position at Clark Hill to go to the SEC's Office of Municipal Securities, sources said.

Montebello Unified School District allegedly defrauded investors in the sale of $100 million in general obligation bonds.

At a bond lawyer conference, lawyers said they've seen increased interest in self-reporting.

“Reporting unauthorized transactions is certainly a good first step in building cooperation,” said one lawyer. “But there could be a lot more to it.”

The MSRB wants to work with other regulatory groups to decrease confusion surrounding suitability rules in conjunction with the SEC's new Regulation Best Interest.

Moody's upgraded the Lincoln-Way district, saying it has effected a fiscal turnaround after the management woes and investigations that sent it to junk in 2016.