S.E.C. Finds Bond Fraud in Kansas - NYTimes.com

Yep, that's a crime!

I don't think this would have happened when Chris Cox ran the SEC!

S.E.C. Finds Bond Fraud in Kansas - NYTimes.com: "Federal regulators said Monday that Kansas had defrauded investors by bringing $273 million of bonds to market in 2009 and 2010 without disclosing that its pension system was deeply underwater and that the investors ran a risk of not being fully repaid.

The Securities and Exchange Commission filed a complaint singling out bonds issued by the Kansas Development Finance Authority to raise money for a range of projects, including hospital improvements, public libraries, water systems, public housing and improvements at Kansas State University.

“Kansas failed to adequately disclose its multibillion-dollar pension liability in bond offering documents, leaving investors with an incomplete picture of the state’s finances and its ability to repay the bonds amid competing strains on the state budget,” said LeeAnn Ghazil Gaunt, head of the S.E.C.’s municipal securities and public pensions unit."

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