Academic journal article Journal of Accountancy

SEC Takes First Enforcement Action in Orange County Collapse

Academic journal article Journal of Accountancy

SEC Takes First Enforcement Action in Orange County Collapse

Article excerpt

The Securities and Exchange Commission has taken action against Orange County and individual members of the Orange County government, alleging material misstatements and omissions of fact under the antifraud provisions of the federal securities laws regarding $2 billion of municipal securities the government sold investors in 1993 and 1994.

As a result of its charges, the SEC filed and settled a civil injunctive action against the former Orange County treasurer and the former assistant treasurer. The commission also settled an administrative proceeding against Orange County, the Orange County Flood Control District and the county board of supervisors. The SEC released a report of its investigation into the conduct of the board of supervisors members in authorizing the issuance of certain municipal securities.

SEC chairman Arthur Levitt said die Orange County case involved inaccurate statements made to sell securities. "In other words, it involved disclosure," said Levitt. The chairman said investors depended on the information provided in public securities offerings. "The law requires that the accuracy and completeness of that information be held sacrosanct." The report on members of the Orange County board said the supervisors failed to take steps to assure the county's financial condition was disclosed when they authorized the issuance of municipal bonds. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.