SEC Pelts Municipalities with Enforcement Action

Beginning of article

The federal Securities and Exchange Commission (SEC) recently has unleashed a series of enforcement actions against municipal governments and officials. For the first time ever, the SEC is pressuring cities and municipal officials to enter into consent decrees confessing federal securities fraud violations.

The growing list of targets includes both large and small cities and counties and public elected officials of local governments. The SEC expects to take enforcement action against Denver, Colo., and against the California cities of Anaheim, Irvine, Avenal, and Wascoe. Elected officials in Orange County, Calif., also will be targets. Much broader action against other municipalities is reportedly under consideration.

With SEC Chairman Arthur …