New Jersey accepted a cease and desist order from the Securities and Exchange Commission after the SEC accused the state of telling the bond markets that it was properly funding state workers’ pensions when it was not, according to the New York Times.
In other words, securities fraud.
The SEC said investors bought more than $26 billion worth of New Jersey’s bonds, “without understanding the severity of the state’s financial troubles.”
The full story…
http://www.nytimes.com/2010/08/19/business/19muni.html?_r=3&hp
