SEC Charges Municipal Advisor with Failing to Register with the Commission

ADMINISTRATIVE PROCEEDING
File No. 3-22034

August 27, 2024 – The Securities and Exchange Commission today announced settled charges against Tensquare, LLC (“Tensquare”) and one its partners, Karl Jentoft (“Jentoft”), for failing to register as a municipal advisor in connection with the issuance of $79 million in aggregate amount of municipal securities for eight Minnesota-based charter schools. 

The SEC’s order finds that from September 2019 through June 2022, Tensquare and Jentoft engaged in municipal advisory activity when Jentoft provided advice to the eight Minnesota charter schools in connection with eight bond offerings.  That advice included: (a) advice on the structure, timing, and terms of the offerings; (b) providing information on debt financing structuring options, including the sale of municipal securities; (c) advising on current interest rates; (d) participating in the bond pricing process; and (e) soliciting and selecting underwriters for the bond offerings.  

The order charges Tensquare with a willful violation of Section 15B(a)(1)(B) of the Securities Exchange Act of 1934 (“Exchange Act”), and charges Jentoft with causing Tensquare’s violation.  Without admitting or denying the findings in the order, Tensquare agreed to be censured and to a cease-and-desist order. Tensquare also agreed to pay a civil penalty of $50,000, disgorgement of $51,716, and prejudgment interest of $9,523.59.  Without admitting or denying the findings in the order, Jentoft agreed to a cease-and-desist order and to pay a civil penalty of $40,000. 

The SEC’s investigation was conducted by Cori Shepherd Whitten and Warren Greth, and supervised by Ivonia Slade and Rebecca Olsen, all of the Enforcement Division’s Public Finance Abuse Unit.