SEC speaks, city chastened.SEC Speaks, City Chastened chas·ten tr.v. chas·tened, chas·ten·ing, chas·tens 1. To correct by punishment or reproof; take to task. 2. To restrain; subdue: chasten a proud spirit. 3. : The U.S. Securities and Exchange Commission filed a cease-and-desist order Cease-and-desist order An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company or a depository institution official to terminate unlawful, unsafe or unsound banking practices. against the city of San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. as part of the city's settlement with the agency over charges of securities fraud. The order stemmed from the city's issuance of $260 million in municipal bonds in 2002 and 2003. The city avoided a fine with the settlement. The commission alleges that city officials knew that San Diego faced financial risks--including a severe under-funding of the city's pension plan to the tune of $284 million in 2002 that ballooned to $720 million in 2003--but did not disclose this information to investors before issuing municipal bonds. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the SEC's order, once the city disclosed its financial risks in fiscal 2004, agencies lowered the city's credit rating. It also mentions the city's delinquency in filing audited financial statements for fiscal years 2003 through 2005. As a result, the city violated the Securities Act by "omitting to state a material fact in the offer or sale of securities." On Nov. 14, the SEC announced that the city settled with the commission in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. being sanctioned, by retaining an independent consultant for three years to "foster compliance with its disclosure obligations" and agreeing to cease and desist Cease and desist (also called C & D) is a legal term used primarily in the United States which essentially means "to halt" or "to end" an action ("cease") and to refrain from doing it again in the future ("desist"). from future securities fraud violations. According to the SEC, the city consented to the settlement without admitting or denying the findings of the cease-and-desist order. The commission is still conducting investigations into individuals and other economic entities that may have violated federal securities laws. |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion