SEC Files Actions Against Muni-Bond Underwriters

By Dean Seal

The U.S. Securities and Exchange Commission filed a lawsuit against Oppenheimer & Co. Inc. and settled similar cases with three other firms for allegedly failing to comply with disclosure requirements for municipal-bond offerings.

The first-of-their-kind actions separately accuse Oppenheimer, BNY Mellon Capital Markets LLC, TD Securities (USA) LLC and Jefferies LLC of failing to meet the legal requirements that would expect them from obtaining disclosures for investors in certain municipal-bond offerings.

The SEC said that at different times since 2017, the firms purported to rely on the so-called limited offering exemption to avoid making certain disclosures, but did not take the steps necessary to obtain that exemption.

Without admitting or denying the SEC's allegations, BNY Mellon has agreed to pay a $300,000 fine and more than $650,000 in disgorgement and interest, while TD Securities and Jefferies would each pay a $100,000 fine and smaller disgorgement and interest sums.

The SEC's suit against Oppenheimer will play out in a Manhattan federal court.

Oppenheimer didn't immediately respond to a request for comment Tuesday.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

September 13, 2022 10:00 ET (14:00 GMT)

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