SEC v. City of Rochester

City of Rochester, Brooks-Harris, CMA and Ganci allegedly misled investors with bond offering documents that included outdated financial statements for the Rochester City School District. The SEC alleged that, in connection with the alleged bond offering conduct, the City and Brooks-Harris violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC alleged that, in connection with the alleged bond offering conduct, Ganci and CMA violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Section 15B(c)(1) of the Exchange Act, and MSRB Rules G-17 and G-42. The SEC’s Complaint separately alleged that the CMA Defendants failed to disclose to nearly 200 municipal clients that CMA had material conflicts of interest arising from its compensation arrangements.

Summary generated from official Securities and Exchange Commission press release