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Municipal Securities Cases and Materials: 2015 - 2018

Sept. 8, 2020

Office of Municipal Securities

September 2020

This compilation of Municipal Securities Cases and Materials was prepared by the Office of Municipal Securities of the Securities and Exchange Commission. This compilation covers calendar years 2015 through 2018 but does not include any cases related to the Municipal Continuing Disclosure Cooperative (“MCDC”) Initiative.[1] The links below contain the full text of certain Commission orders/opinions, administrative law judge decisions, and litigation releases, as well as federal court decisions, involving participants in municipal securities transactions. In some instances, the linked document is a determination of fact and law following a hearing; in others, findings made by the Commission in a settled proceeding in which the named party has neither admitted nor denied the findings, but consented to entry of the order. In still other instances, such as a complaint, the document may consist of allegations.

The compilation organizes enforcement actions by relevant participants to municipal securities transactions or topics. However, inclusion under a particular heading does not limit in any manner the relevance of the document to other participants or topics.

While this compilation provides an extensive review of Commission activity in the municipal securities market for the relevant period, it does not purport to be exhaustive. It also does not include actions by private parties under the federal securities laws arising from municipal securities transactions, or Commission and private actions under the antifraud and other sections of the federal securities law arising from transactions not involving municipal securities. Such materials may also be useful to the reader.

Please visit the official Office of Municipal Securities webpage, maintained by the Commission, at www.sec.gov/municipal for more information related to the Commission’s activities regarding municipal securities.

Issuers

Commission Orders – Settled Administrative Proceedings

Federal Court Actions/Injunctive Proceedings

Public Officials

Commission Orders – Settled Administrative Proceedings

  • In the Matter of Westlands Water District, Thomas W. Birmingham, and Louie David Ciapponi, Securities Act of 1933 Release No. 10053, Accounting and Auditing Enforcement Release No. 3752, Administrative Proceeding File No. 3-17162 (March 9, 2016).
    • See Issuers section.

Federal Court Actions/Injunctive Proceedings

Obligated Persons

Federal Court Actions/Injunctive Proceedings

Accountants

Commission Orders – Settled Administrative Proceedings

  • In the Matter of Domenick F. Consolo, CPA and PKF O’Connor Davies, LLP, Securities Act of 1933 Release No. 10242, Securities Exchange Act of 1934 Release No. 79196, Accounting and Auditing Enforcement Release No. 3821, Administrative Proceeding File No. 3-17654 (October 31, 2016).

Underwriters

Commission Orders – Settled Administrative Proceedings

  • In the Matter of Edward D. Jones & Co., L.P., Securities Act of 1933 Release No. 9889,Securities Exchange Act of 1934, Release No. 75688, Administrative Proceedings File, No. 3-16751 (August 13, 2015).
  • In the Matter of Stina R. Wishman, Securities Act of 1933 Release No. 9890, Securities Exchange Act of 1934, Release No. 75689, Investment Advisers Act of 1940, Release No. 4169, Investment Company Act of 1940, Release No. 31751, Administrative Proceedings File, No. 3-16751(August 13, 2015).
  • In the Matter of Lawson Financial Corporation, Securities Act of 1933 Release No. 10334, Securities Exchange Act Of 1934 Release No. 80376, Investment Company Act of 1940 Release No. 32591, Administrative Proceeding File No. 3-17901 (Apr. 5, 2017).
  • In the Matter of John T. Lynch, Jr., Securities Act of 1933 Release No. 10335, Securities Exchange Act Of 1934 Release No. 80377, Investment Company Act of 1940 Release No. 32592, Administrative Proceeding File No. 3-17902 (Apr. 5, 2017).
  • In the Matter of O’Connor & Company Securities, Inc. and Anthony Michael Wetherbee, Securities Act of 1933 Release No. 10405, Securities Exchange Act Of 1934 Release No. 81462, Investment Company Act of 1940 Release No. 32789, Administrative Proceeding File No. 3-18131(Aug. 23, 2017).
  • In the Matter of Charles Kerry Morris, Securities Act of 1933 Release No. 10529, Securities Exchange Act of 1934 Release No. 83838, Administrative Proceeding File No. 3-18639 (Aug. 14, 2018).
    • See Sales Practice section.
  • In the Matter of NW Capital Markets Inc. and James A. Fagan, Securities Exchange Act of 1934 Release No. 84224, Administrative Proceeding File No. 3-18640 (Aug. 14, 2018).
    • See Sales Practice section.

Trustees

Commission Orders – Settled Administrative Proceedings

Federal Court Actions/Injunctive Proceedings

Financial Advisors

Commission Orders – Settled Administrative Proceedings

  • In the Matter of First Southwest Company, LLC, Securities Exchange Act of 1934 Release No. 77300, Administrative Proceeding File No. 3-17154 (Mar. 7, 2016).
  • In the Matter of Chris D. Rosenthal, Securities Act of 1933 Release No. 10587, Securities Exchange Act of 1934 Release No. 84841, Investment Advisers Act of 1940 Release No. 5076, Investment Company Act of 1940 Release No. 33328, Administrative Proceeding File No. 3-18936 (Dec. 18, 2018).
    • See Sales Practice section.

Investment Advisers

Commission Orders – Settled Administrative Proceedings

Municipal Advisors

Commission Orders – Settled Administrative Proceedings

Federal Court Actions/Injunctive Proceedings

Sales Practice

Commission Orders – Settled Administrative Proceedings

Flipping and Parking Scheme

  • In the Matter of Charles Kerry Morris, Securities Act of 1933 Release No. 10529, Securities Exchange Act of 1934 Release No. 83838, Administrative Proceeding File No. 3-18639 (Aug. 14, 2018).
    • See Underwriters section.
  • In the Matter of NW Capital Markets Inc. and James A. Fagan, Securities Exchange Act of 1934 Release No. 84224, Administrative Proceeding File No. 3-18640 (Aug. 14, 2018).
    • See Underwriters section.
  • In the Matter of Chris D. Rosenthal, Securities Act of 1933 Release No. 10587, Securities Exchange Act of 1934 Release No. 84841, Investment Advisers Act of 1940 Release No. 5076, Investment Company Act of 1940 Release No. 33328, Administrative Proceeding File No. 3-18936 (Dec. 18, 2018).
    • See Financial Advisors section.

Federal Court Actions/Injunctive Proceedings

Flipping Scheme


[1] The compilation of MCDC Initiative cases and related material is available on the Office of Municipal Securities webpage here.

Last Reviewed or Updated: Sept. 8, 2020