Municipal Securities Cases and Materials: 2019 - 2024

Office of Municipal Securities

November 2024

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 2019 through 2024. 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.

CASES CATEGORIZED BY ENTITY TYPE

AUDITORS/ACCOUNTANTS

Commission Orders – Settled Administrative Proceedings

• In the Matter of Christopher L. Stanley, CPA, Securities Exchange Act of 1934 Release No. 91185, Accounting and Auditing Enforcement Release No. 4204, A.P. File No. 3-20229 (Feb. 23, 2021)
• In the Matter of Jennifer M. Stewart, CPA, Securities Exchange Act of 1934 Release No. 91186, Accounting and Auditing Enforcement Release No. 4205, Administrative Proceeding File No. 3-20230 (February 23, 2021)
• Securities and Exchange Commission v. Luther C. Speight, III and Luther Speight & Company, LLC, No. 1:23-cv-04384-AT (N.D. GA.) (Sept. 27, 2023)
• In the Matter of Shelby L. Lackey, CPA, Securities Exchange Act of 1934 Release No. 94426, A.P. File No. 3-20800 (Mar. 16, 2022)

BROKER-DEALERS

Flipping Cases

Commission Orders – Settled Administrative Proceedings

• In the Matter of Roosevelt & Cross, Inc., Securities Act of 1933 Release No. 10837, Securities Exchange Act of 1934 Release No. 89851, A.P. File No. 3-19996 (Sept. 14, 2020)
• In the Matter of UBS Financial Services Inc., Securities Exchange Act of 1934 Release No. 89348, A.P. File No. 3-19886 (July 20, 2020)
• In the Matter of Boenning & Scattergood Inc., Craig Burdulis and Brian Gillespie, Securities Exchange Act of 1934 Release No. 88662, A.P. File No. 3-19749 (Apr. 16, 2020)
• In re Matter of RBC Capital Markets, LLC, Securities Exchange Act of 1934 Release No. 93042, A.P. File No. 3-20568 (Sept. 17, 2021)
• In re Matter of Kenneth G. Firedrich, Securities Exchange Act of 1934 Release No. 93043, A.P. File No. 3-20569 (Sept. 17, 2021)
• In re Matter of Jamie L. Durando, Securities Exchange Act of 1934 Release No. 93044, A.P. File No. 3-20570 (Sept. 17, 2021)

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. RMR Asset Management Company, et al., No. 18-civ-01895 (S.D. Cal.) filed August 17, 2020), Complaint (Aug. 24, 2020)

Fair Dealing Cases

Commission Orders – Settled Administrative Proceedings

• In the Matter of First Midstate Inc. and Paul D. Brown, Securities Exchange Act of 1934 Release No. 90783, A.P. File No. 3-20187 (Dec. 22, 2020)
• In the Matter of IFS Securities, Securities Exchange Act of 1934 Release No. 86210, A.P. File No. 3-19220 (June 27, 2019)
• In re Matter of Crews & Associates, Inc., Securities Exchange Act of 1934 Release No. 92768, A.P. File No. 3-20480 (Aug. 26, 2021)
• In re Matter of Rush F. Harding III, Securities Exchange Act of 1934 Release No. 62769, A.P. File No. 3-20481 (Aug. 26, 2021)

Limited Offering Exemption Cases

Commission Orders – Settled Administrative Proceedings

• In the Matter of Fifth Third Securities, Inc., Securities Exchange Act of 1934 Release No. 97937 Investment Advisers Act of 1940 Release No. 6350, A.P. File No. 3-21531 (July 18, 2023)
• In the Matter of Keybank Capital Markets Inc., Securities Exchange Act of 1934 Release No. 97064, A.P. File No. 3-12336 (Mar. 7, 2023)
• In the Matter of PNC Capital Markets LLC, Securities Exchange Act of 1934 Release No. 96558, A.P. File No. 3-21259 (Dec. 21, 2022)
• In the Matter of TD Securities (USA) LLC, Securities Exchange Act of 1934 Release No. 95751, A.P. File No. 3-21072 (Sept. 13, 2022)
• In the Matter of BNY Mellon Capital Markets, LLC, Securities Exchange Act of 1934 Release No. 95750, A.P. File No. 3-21071 (Sept. 13, 2022)
• In the Matter of Jeffries LLC, Securities Exchange Act of 1934 Release No. 95749, A.P. File No. 3-21070 (Sept. 13, 2022)

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. Oppenheimer & Co. Inc., No. 1:22-cv-7801 (S.D.N.Y.), Complaint (Sept. 13, 2022)

Pricing Responsibilities of Underwriters

Commission Orders – Settled Administrative Proceedings

• In the Matter of First Midstate Inc. and Paul D. Brown, Securities Exchange Act of 1934 Release No. 90783, A.P. File No. 3-20187 (Dec. 22, 2020)

INVESTMENT ADVISERS

Pay-to-Play Cases

Commission Orders – Settled Administrative Proceedings

• In the Matter of Obra Capital Management, LLC, Investment Advisers Act of 1940 Release No. 6662, A.P. File No. 3-22019 (Aug. 19, 2024)
• In re Matter of Wayzata Investment Partners LLC, Investment Advisers Act of 1940, A.P. File No. 3-21914 (Aug. 15, 2024)
• In the Matter of Canaan Management, LLC, Investment Advisers Act of 1940 Release No. 6126, A.P. File No. 3-21079 (Sept. 15, 2022)
• In the Matter of Asset management Group of Bank of Hawaii, Investment Advisers Act of 1940 Release No. 6127, A.P. File No. 3-21080 (Sept. 15, 2022)
• In the Matter of Highland Capital Partners LLC, Investment Advisers Act of 1940 Release No. 6128, A.P. File No. 3-21081 (Sept. 15, 2022)
• In the Matter of Starvest Management, Inc., Investment Advisers Act of 1940 Release No. 6129, A.P. File No. 3-21082 (Sept. 15, 2022)

Section 206(2) Cases

Commission Orders – Settled Administrative Proceedings

• In the Matter of Aon Investment USA Inc., Investment Advisers Act of 1940 Release No. 6536, A.P. File No. 3-21837 (Jan. 25, 2024)
• In the Matter of Clair P. Shaughnessy, Investment Advisers Act of 1940 Release No. 6535, A.P. File No. 3-21836 (Jan. 25, 2024)

Other Sales Practices

Commission Orders – Settled Administrative Proceedings

• In the Matter of Hilltop Securities Inc. and Daniel C. Tracy, Securities Exchange Act of 1934 Release No. 92370, Investment Advisers Act of 1940 Release No. 5768, A.P. File No. 3-20389 (July 9, 2021) (priority of orders)
• In the Matter of Morgan Stanley Smith Barney, LLC, Securities Exchange Act of 1934 Release No. 86988, Investment Advisers Act of 1940 Release No. 5354, A.P. File No. 3-19467 (Sept. 17, 2019) (swaps)
• In the Matter of Anthony A. Falsetta, Securities Exchange Act of 1934 Release No. 92820, A.P. File No. 3-20505 (Aug. 31, 2021) (priority of orders)

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. Rhode Island Commerce Corporation (f/k/a Rhode Island Economic Development Corporation), et al., No. 1:16-cv-107 (D.R.I.), Complaint (Mar. 7, 2016), Lit. Release No. 24428 (March 20, 2019) (fraud)

ISSUERS

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. Ruben James Rojas, No. 5:19-civ-01799 (C.D. Cal.), Complaint (Sept. 19, 2019), Judgment (Nov. 18, 2022)
• Securities and Exchange Commission v. Park View School, Inc. and Debra Kay Slagle, No. 3:20-cv-08237-DLR (D. Ariz.), Complaint (Sept. 14, 2020)
• Securities and Exchange Commission v. Town of Oyster Bay, et al., No. 17-cv-06809 (E.D.N.Y, filed Nov. 21, 2017), Litigation Release No. 24494 (June 7, 2019)
• Securities and Exchange Commission v. City of Rochester, No. 22-cv-6273 (W.D.N.Y.) (June 14, 2022)

Commission Orders – Settled Administrative Proceedings

• In the Matter of Crosby Independent School District, Securities Exchange Act of 1934 Release No. 94425, A.P. File No. 3-20799 (Mar. 16, 2022)
• In the Matter of Sweetwater Union High School District, Securities Act of 1933 Release No. 10981, A.P. File No. 3-20560 (Sept. 16, 2021)
• In the Matter of Montebello Unified School District and Anthony James Martinez, Securities Act of 1933 Release No. 10691, A.P. File No. 3-19469 (Sept. 19, 2019)

PUBLIC OFFICIALS

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. Navnoor S. Kang, Gregg Z. Schonhorn, and Deborah D. Kelley, No. 16-cv-9829 (S.D.N.Y.) (Dec. 21, 2016), Judgments (Dec. 23, 2019)
• Securities and Exchange Commission v. Ruben James Rojas, No. 5:19-civ-01799 (C.D. Cal.), Complaint (Sept. 19, 2019), Judgment (Nov. 18, 2022)
• Securities and Exchange Commission v. Keith Borge, No. 1:19-cv-2787 (S.D.N.Y.), Complaint (Mar. 28, 2019)
• Securities and Exchange Commission v. Dale M. Walker, No. 5:19-cv-00097-TES (M.D. Ga.), Complaint (Mar. 15, 2019)
• Securities and Exchange Commission v. Vern A. Breland, No. 3-22-cv-01470 (W.D. La.), Complaint (June 2, 2022), Judgment (Nov. 6, 2023)
• Securities and Exchange Commission v. Holland, No. 1:22-cv-00590 (W.D. Tex.), Complaint (June 6, 2022)
• Securities and Exchange Commission v. Sewell, No. 22-cv-6274 (W.D.N.Y.), Complaint (June 14, 2022)
• Securities and Exchange Commission v. Michel, No. 21-cv-16230 (S.D. Cal.), Complaint (Sept. 16, 2021)
• Securities and Exchange Commission v. David Webb, Jr., No. 17-cv-8685 (N.D. Ill.), Complaint (Dec. 1, 2017); Lit. Release No. 25160 (Aug. 9, 2021)

MUNICIPAL ADVISORS

Unregistered Municipal Advisory Activity

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. Aaron B. Fletcher and Twin Spires Financial LLC, No. 3:22-cv-01467, Complaint (June 2, 2022)
• Securities and Exchange Commission v. Choice Advisors, LLC and Matthias O’Meara, No. 3:21-cv-01669-JO-MSB (S.D. Cal.) (Sept. 24, 2021), Lit. Release No. 26142 (Sept. 30, 2024)

Commission Orders – Settled Administrative Proceedings

• In the Matter of Funding the Gap, LLC and Irene P. Carroll, Securities Exchange Act of 1934 Release No. 90002, A.P. File No. 3-20072 (Sept. 25, 2020)
• In the Matter of G. Wayne Oetken, Securities Exchange Act of 1934 Release No. 86395, A.P. File No. 3-19254 (July 16, 2019)
• In the Matter of School Services of California, Inc., Securities Exchange Act of 1934 Release No. 86396, Administrative Proceeding File No. 3-19255 (July 16, 2019)
• In the Matter of Clear Scope Advisors, Inc., Securities Exchange Act of 1934 Release No. 85618, A.P. File No. 3-19143 (Apr. 11, 2019)
• In the Matter of Dale Scott & Company, Inc., Securities Exchange Act of 1934 Release No. 86393, A.P. File No. 3-19253 (July 16, 2019)
• In the Matter of Robert L. Benecke dba Benecke Economics, Securities Exchange Act of 1934 Release No. 97828, Investment Company Act of 1940, A.P. File No. 3-21509 (June 30, 2023)
• In the Matter of Loop Capital Markets, LLC, Securities Exchange Act of 1934 Release No. 95764, A.P. File No. 3-21075 (Sept. 14, 2022)
• In the Matter of Legacy Funding Services, LLC and Raymond Howard Sowell, Securities Exchange Act of 1934 Release No. 95725, A.P. File No. 3-21059 (Sept. 9, 2022)
• In the Matter of Paula Permenter, Securities Exchange Act of 1934 Release No. 93105, A.P. File No. 3-20593 (Sept. 23, 2021)

Breach of Fiduciary Duty

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. Comer Capital Group, LLC and Brandon L. Comer, No. 19-civ-04324 (N.D. Ill., filed June 27, 2019), Lit. Release No. 24520 (June 27, 2019)
• Securities and Exchange Commission v. Aaron B. Fletcher and Twin Spires Financial LLC (Aug. 22, 2022), Complaint (June 2, 2022)

Commission Orders – Settled Administrative Proceedings

• In the Matter of Fieldman Rolapp & Associates, Inc. and Anna Sarabian, Securities and Exchange Act Release No. 98510 (Sept. 25, 2023)

Failure to Document Advisory Relationship

Commission Orders – Settled Administrative Proceedings

• In the Matter of First Southwest Company, LLC, Securities Exchange Act of 1934 Release No. 77300, A.P. File No. 3-17154 (Mar. 7, 2016)

SALES REPRESENTATIVES/TRADERS

Commission Orders – Settled Administrative Proceedings

• In the Matter of Hilltop Securities Inc. and Daniel C. Tracy, Securities Exchange Act of 1934 Release No. 92370, Investment Advisers Act of 1940 Release No. 5768, A.P. File No. 3-20389 (July 9, 2021)
• In the Matter of First Midstate Inc. and Paul D. Brown, Securities Exchange Act of 1934 Release No. 90783, A.P. File No. 3-20187 (Dec. 22, 2020)
• In the Matter of Eliseo Sampayo, Securities Exchange Act of 1934 Release No. 89961, Investment Advisers Act of 1940 Release No. 5588, A.P. File No. 3-20047 (Sept. 22, 2020)
• In the Matter of Thomas Vigorito, Securities Act of 1933 Release No. 10838, Securities Exchange Act of 1934 Release No. 89855, Investment Company Act of 1940 Release No. 34008, A.P. File No. 3-19997 (Sept. 14, 2020)
• In the Matter of William W. Welsh, Securities Act of 1933 Release No. 10839, Securities Exchange Act of 1934 Release No. 89856, Investment Company Act of 1940 Release No. 34009, A.P. File No. 3-19998 (Sept. 14, 2020)
• In the Matter of William S. Costas., Securities Exchange Act of 1934 Release No. 89346, Investment Advisers Act of 1940 Release No. 5545, A.P. File No. 3-19884 (July 20, 2020)
• In the Matter of John J. Marvin, Securities Exchange Act of 1934 Release No. 89347, Investment Advisers Act of 1940 Release No. 5546, Administrative Proceeding File No. 3-19885 (July 20, 2020)
• Securities and Exchange Commission v. William Alfred Batchelor and John Michael Zukoski, No. 3:20-cv-02871 (N.D. Cal., filed April 27, 2020), Lit. Release No. 24806 (Apr. 27, 2020)
• In the Matter of Boenning & Scattergood Inc., Craig Burdulis and Brian Gillespie, Securities Exchange Act of 1934 Release No. 88662, A.P. File No. 3-19749 (Apr. 16, 2020)
• In the Matter of Jerry E. Orellana, Securities Exchange Act of 1934 Release No. 88784, Investment Advisers Act of 1940 Release No. 5492, A.P. File No. 3-19779 (Apr. 30, 2020)
• In the Matter of Thomas C. Muldoon, Securities Exchange Act of 1934 Release No. 86848, Investment Advisers Act of 1940 Release No. 5334, Investment Company Act of 1940 Release No. 33614, A.P. File No. 3-19408 (Sept. 3, 2019)

CASES CATEGORIZED BY TOPIC

SALES PRACTICES

Commission Orders – Settled Administrative Proceedings

• In the Matter of Hilltop Securities Inc. and Daniel C. Tracy, Securities Exchange Act of 1934 Release No. 92370, Investment Advisers Act of 1940 Release No. 5768, A.P. File No. 3-20389 (July 9, 2021)
• In the Matter of Eliseo Sampayo, Securities Exchange Act of 1934 Release No. 89961, Investment Advisers Act of 1940 Release No. 5588, A.P. File No. 3-20047 (Sept. 22, 2020)

• In the Matter of Roosevelt & Cross, Inc., Securities Act of 1933 Release No. 10837, Securities Exchange Act of 1934 Release No. 89851, A.P. File No. 3-19996 (Sept. 14, 2020)
• In the Matter of Thomas Vigorito, Securities Act of 1933 Release No. 10838, Securities Exchange Act of 1934 Release No. 89855, Investment Company Act of 1940 Release No. 34008, A.P. File No. 3-19997 (Sept. 14, 2020)
• In the Matter of William W. Welsh, Securities Act of 1933 Release No. 10839, Securities Exchange Act of 1934 Release No. 89856, Investment Company Act of 1940 Release No. 34009, A.P. File No. 3-19998 (Sept. 14, 2020)
• In the Matter of William S. Costas., Securities Exchange Act of 1934 Release No. 89346, Investment Advisers Act of 1940 Release No. 5545, A.P. File No. 3-19884 (July 20, 2020)
• In the Matter of UBS Financial Services Inc., Securities Exchange Act of 1934 Release No. 89348, A.P. File No. 3-19886 (July 20, 2020)
• In the Matter of John J. Marvin, Securities Exchange Act of 1934 Release No. 89347, Investment Advisers Act of 1940 Release No. 5546, A.P. File No. 3-19885 (July 20, 2020)
• In the Matter of Jerry E. Orellana, Securities Exchange Act of 1934 Release No. 88784, Investment Advisers Act of 1940 Release No. 5492, A.P. File No. 3-19779 (Apr. 30, 2020)
• In the Matter of Boenning & Scattergood Inc., Craig Burdulis and Brian Gillespie, Securities Exchange Act of 1934 Release No. 88662, A.P. File No. 3-19749 (Apr. 16, 2020)
• In the Matter of Morgan Stanley Smith Barney, LLC, Securities Exchange Act of 1934 Release No. 86988, Investment Advisers Act of 1940 Release No. 5354, A.P. File No. 3-19467 (Sept. 17, 2019)
• In the Matter of Thomas C. Muldoon, Securities Exchange Act of 1934 Release No. 86848, Investment Advisers Act of 1940 Release No. 5334, Investment Company Act of 1940 Release No. 33614, A.P. File No. 3-19408 (Sept. 3, 2019)

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. RMR Asset Management Company, et al., No. 18-civ-01895 (S.D. Cal., filed August 17, 2020), Lit. Release No. 24872 (Aug. 24, 2020)

DISCLOSURE

Commission Orders – Settled Administrative Proceedings

• In the Matter of First Midstate Inc. and Paul D. Brown, Securities Exchange Act of 1934 Release No. 90783, A.P. File No. 3-20187 (Dec. 22, 2020)

Federal Court Actions/Injunctive Proceedings

• Securities and Exchange Commission v. Park View School, Inc. and Debra Kay Slagle, No. 3:20-cv-08237-DLR (D. Arizona), Complaint (Sept. 14, 2020)
• Securities and Exchange Commission v. William Alfred Batchelor and John Michael Zukoski, No. 3:20-cv-02871 (N.D. Cal., filed April 27, 2020), Lit. Release No. 24806 (Apr. 27, 2020)
• Securities and Exchange Commission v. Ruben James Rojas, No. 5:19-civ-01799 (C.D. Cal., filed Sept. 19, 2019), Lit. Release No. 24602 (Sept. 19, 2019)
• Securities and Exchange Commission v. Town of Oyster Bay, et al., No. 17-cv-06809 (E.D.N.Y.), Complaint (Nov. 21, 2017), Lit. Release No. 24494 (June 7, 2019)
• Securities and Exchange Commission v. Keith Borge, No. 1:19-cv-2787 (S.D.N.Y.), Complaint (Mar. 28, 2019)
• Securities and Exchange Commission v. Rhode Island Commerce Corporation (f/k/a Rhode Island Economic Development Corporation), et al., No. 1:16-cv-107 (D.R.I.), Complaint (Mar. 7, 2016)

RECORDKEEPING FAILURES

Commission Orders – Settled Administrative Proceedings

Municipal Advisors

• • SEC Charges 12 Municipal Advisors with Recordkeeping Violations, Release 2024-132 (Sept. 18, 2024)

Credit Rating Agencies

• • SEC Charges Six Credit Rating Agencies with Significant Recordkeeping Failures, Release 2024-114 (Sept. 3, 2024)

Broker-Dealers; Investment Advisers

For matters related to broker-dealers, investment advisers, and dually registered broker-dealers and investment advisers, please see the SEC Press Releases page.