Municipal Securities Cases and Materials: Supplemental Text (2004 - 2010 Cases)

May 12, 2017

Office of Municipal Securities
Division of Trading and Markets

March 2011

This compilation was prepared by the Office of Municipal Securities in the Division of Trading and Markets of the Securities and Exchange Commission and supplements the Municipal Securities Cases and Materials Text that was issued in December 2003. This supplement is current through December 2010. It contains 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 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, 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.

The reader is encouraged to consult the web site maintained by the Commission at http://www.sec.gov for future releases.

Links to Case Materials Included in the Compilation

You may use these links to view the original website materials for individual cases.

Issuers

Commission Orders — Settled Administrative Proceedings

Public Officials

Injunctive Proceedings

  • SEC v. Dale C. Hatch, Case Number: 2:05CV00654 PGC (C.D. Utah), Litigation Release No. 19324 (August 4, 2005) (complaint).
     
  • SEC v. Hatch, Docket No. 2:05CV00654 PGC (D. Ut.), Litigation Release No. 19749 (June 30, 2006).
     
  • SEC v. Larry P. Langford and William B. Blount, Case No. 07-23271-MC-Huck-Simonton (S.D. Fla.), Litigation Release No. 20400 (December 17, 2007) (Application For an Order Enforcing Administrative Subpoenas).
     
  • SEC v. Michael T. Uberuaga, et al., Civ. Action No. 08 CV 0625 DMS (LSP) (S.D. Cal.), Litigation Release No. 20522 (April 7, 2008) (SEC charges Five Former San Diego City Officials with Fraud in Connection with City Municipal Securities Offerings).
     
  • SEC v. Larry P. Langford, William B. Blount, Blount Parrish & Co., Inc., and Albert W. LaPierre, Case No. cv-08-B-0761-S (N.D. Ala.), Litigation Release No. 20545 (April 30, 2008) (Complaint).

Federal Court Actions

Report under Section 21(a) of the Exchange Act

Obligated Persons

Injunctive Proceedings

  • SEC v. Robert A. Kasirer, et al., Civ. Action No. 04-C-4340 (N.D. Ill.), Litigation Release No. 18774 (July 1, 2004) (complaint).
     
  • SEC v. Mojave Valley Resort, Inc. and Mark A. Temple, Case No. ED CV 04-1061 VAP (C.D. Cal.), Litigation Release No. 18852 (August 25, 2004).
     
  • SEC v. Manoucher Sarbaz, et al., Civ. Action No. CV 03-881 CJC (C.D. Cal.), Litigation Release No. 18898 (September 24, 2004).
     
  • SEC v. Bruce M. Perry and M. Brooks Turkel, Civ. Action No. 05-21525-CIV-Martinez (S.D. Fla.), Litigation Release No. 19256 (June 8, 2005) (complaint).
     
  • SEC v. Bruce M. Perry and M. Brooks Turkel, Civ. Action No. 05-21525-CIV-Martinez (S.D. Fla.), Litigation Release No. 19522 (January 5, 2006) (Final Judgment Entered against Defendant M. Brooks Turkel).
     
  • SEC v. Bruce M. Perry and M. Brooks Turkel, Civ. Action No. 05-21525-CIV-Martinez (S.D. Fla.), Litigation Release No. 19887 (October 25, 2006) (Final Judgment Entered against Defendant Bruce M. Perry).
     
  • SEC v. Robert Kasirer, et al., Case Number 05-CV-3059-RSWL (C.D. Calif.), Litigation Release No. 20358 (November 5, 2007) (Final Judgment Against Robert A. Kasirer in Municipal Revenue Bond Offering Fraud).

Commission Orders — Settled Administrative Proceedings

  • In the Matter of Mount Sinai Medical Center of Florida, Inc., M. Brooks Turkel and Harvey W. Smith, Securities Act Release No. 8580, Securities Exchange Act Release No. 51797, Accounting and Auditing Enforcement Release No. 2254, A.P. File No. 3-11944 (June 7, 2005).
     
  • In the Matter of Bruce M. Perry, Securities Act Release No. 8755, Securities Exchange Act Release No. 54776, Accounting and Auditing Enforcement Release No. 2516, A.P. File No. 3-12481 (November 17, 2006).

Underwriters

Injunctive Proceedings

  • SEC v. Robert A. Kasirer, et al., Civ. Action No. 04-C-4340 (N.D. Ill.), Litigation Release No. 18774 (July 1, 2004) (complaint).

  • See Obligated Persons section.
     
  • SEC v. Robert Kasirer, et al., Civ. Action No. 04-CV-04340 (N.D. Ill.), Litigation Release No. 19131 (March 11, 2005).
     
  • SEC v. Robert J. Bradbury, Dolphin & Bradbury, Incorporated and Margaret B. Bradbury as Relief Defendant, Civ. Action No. 06-CV-3435 (E.D. Pa.), Litigation Release No. 19792 (August 3, 2006).
     
  • SEC v. Terry Richard Martin, et al., Civ. Action No. C 03-2646 C (W.D. Wa.) Litigation Release No. 19814 (August 28, 2006).
     
  • SEC v. Larry P. Langford and William B. Blount, Case No. 07-23271-MC-Huck-Simonton (S.D. Fla.), Litigation Release No. 20400 (December 17, 2007) (Application For an Order Enforcing Administrative Subpoenas).
     
  • SEC v. Larry P. Langford, William B. Blount, Blount Parrish & Co., Inc., and Albert W. LaPierre, Case No. cv-08-B-0761-S (N.D. Ala.), Litigation Release No. 20545 (April 30, 2008) (Complaint).
     
  • SEC v. Citigroup Global Markets, Inc., Civil Action No. 08 CIV 10753 (RMB); SEC v. UBS Securities LLC and UBS Financial Services Inc., Civil Action No. 08 CIV 10754 (S.D. NY), Litigation Release No. 20824 (December 11, 2008) (SEC Finalizes Auction Rate Securities Settlements with Citigroup and UBS Providing Nearly $30 Billion in Liquidity to Investors).
     
  • SEC v. Wachovia Securities, LLC, Civ. Case No. 09 CV 743 (N.D. Ill.), Litigation Release No. 20885 (February 5, 2009) (SEC Finalizes ARS Settlement with Wachovia, Providing Over $7 Billion in Liquidity to Investors).
     
  • SEC v. Banc of America Securities LLC and Banc of America Investment Services, Inc., Civ. Action No. 09-CIV-5170 (S.D.N.Y.), Litigation Release No. 21066 (June 3, 2009); SEC v. RBC Capital Markets Corporation, Civ. Action No. 09-CIV-5172 (S.D.N.Y.), Litigation Release No. 21066 (June 3, 2009); SEC v. Deutsche Bank Securities Inc., Civ. Action No. 09-CIV-5174 (S.D.N.Y.), Litigation Release No. 21066 (June 3, 2009) (SEC Finalizes ARS Settlements with Bank of America, RBC and Deutsche Bank, Providing Over $6 Billion in Liquidity to Investors).
     
  • SEC v. Morgan Keegan & Company, Inc., Civ. Action No. 09-CV-1965 (N.D. Ga.), Litigation Release No. 21143 (July 21, 2009) (Complaint).

Administrative Proceedings — Commission Decisions

  • In the Matter of Public Finance Consultants, Inc., Robert D. Fowler, Dolphin and Bradbury, Incorporated, and Robert J. Bradbury, A.P. File No. 3-11465, Initial Decision Release No. 274 (February 25, 2005) (initial decision of administrative law judge).
     
  • In the Matter of Dolphin and Bradbury, Incorporated and Robert J. Bradbury, Securities Act Release No. 8721, Securities Exchange Act Release No. 54143, A.P. File No. 3-11465 (July 13, 2006) (Opinion of the Commission).
     
  • In the Matter of Anthony C. Snell and Charles E. LeCroy, A.P. File No. 3-12359 (July 7, 2006) (Order Instituting Proceedings).
     
  • In the Matter of Anthony C. Snell and Charles E. LeCroy, A.P. Rulings Release No. 630, A.P. File No. 3-12359 (October 18, 2006) (Order Granting Partial Summary Disposition to the Division of Enforcement).
     
  • In the Matter of Anthony C. Snell and Charles E. LeCroy, A. P. Rulings Release No. 631, A.P. File No. 3-12359 (October 26, 2006) (Order Denying Respondents’ Motion for Partial Summary Disposition).
     
  • In the Matter of Anthony C. Snell and Charles E. LeCroy, A.P. File No. 3-12359, Initial Decision Release No. 330 (May 3, 2007) (Initial Decision of Administrative Law Judge).
     
  • In the Matter of Anthony C. Snell and Charles E. LeCroy, Securities Exchange Act Release No. 55850, A.P. File No. 3-12359, (June 1, 2007) (Notice that Initial Decision has become Final).
     
  • In the Matter of the Application of Sisung Securities Corporation and Lawrence J. Sisung, Jr. for Review of Disciplinary Action Taken By NASD, Securities Exchange Act Release No. 56741, A.P. File No. 3-12443, (November 5, 2007) (Opinion of the Commission).

Commission Orders — Settled Administrative Proceedings

Federal Court Actions

Financial Advisors

Administrative Proceedings — Commission Decisions

  • In the Matter of Public Finance Consultants, Inc., Robert D. Fowler, Dolphin and Bradbury, Incorporated, and Robert J. Bradbury, A.P. File No. 3-11465, Initial Decision Release No. 274 (February 25, 2005) (initial decision of administrative law judge).
    See Underwriters section.
     
  • In the Matter of Public Finance Consultants, Inc., Robert D. Fowler, Dolphin & Bradbury, Inc., and Robert J. Bradbury, Securities Act Release No. 8729, A.P. File No. 3-11465 (August 3, 2006) (Notice that Initial Decision has become Final as to Public Finance Consultants, Inc. and Robert D. Fowler).
     
  • In the Matter of the Application of Sisung Securities Corporation and Lawrence J. Sisung, Jr. for Review of Disciplinary Action Taken By NASD, Securities Exchange Act Release No. 56741, A.P. File No. 3-12443, (November 5, 2007) (Opinion of the Commission).
     
  • In the Matter of Kent D. Nelson, A.P. File 3-13112, Initial Decision Release No. 371 (February 24, 2009) (Initial Decision of Administrative Law Judge).
     
  • In the Matter of Kent D. Nelson, A.P. File 3-13112, Securities Exchange Act Release No. 59787, Investment Advisers Act Release No. 2868, A.P. File No. 3-13112 (April 17, 2009) (Notice that Initial Decision has Become Final).
     
  • In the Matter of John Gardner Black and Devon Capital Management, A.P. File No. 3-9599, Investment Advisors Act Release No. 3015 (April 13, 2010) (Order Denying in Part and Granting in Part Petition to Set Aside Bar Order).
     
  • In the Matter of John Gardner Black, A.P. File No. 3-9599, Investment Advisors Act Release No. 3040 (June 18, 2010).

Commission Orders — Settled Administrative Proceedings

  • In the Matter of Michael S. deVegter, Securities Act Release No. 8645, Securities Exchange Act Release No. 53009, Investment Advisers Act Release No. 2465, Investment Company Act Release No. 27196, A.P. File No. 3-12131 (December 22, 2005).
     
  • In the Matter of CDR Financial Products, Inc., f/k/a Chambers, Dunhill, Rubin & Co., Securities Act Release No. 8854, A.P. File No. 3-12851 (September 28, 2007).
     
  • In the Matter of RBC Capital Markets Corporation, Securities Exchange Act Release No. 59439, A.P. File No. 3-13379 (February 24, 2009).

Federal Court Actions

  • SEC v. William A. DiBella and North Cove Ventures LLC, Civ. Action No. 08-1673-CV(L); 08-3797-CV(CON)) (2d Cir.), Litigation Release No. 21315 (November 30, 2009).
     
  • SEC v. Onyx Capital Advisors, LLC, Roy Dixon, Jr. and Michael A. Farr, Civ. Action No. 2:10-cv-11633-DPH-MKM (Eastern Dist., MI), Litigation Release No. 21500 (April 22, 2010).
     
  • SEC v. Steven L. Rattner, 10 CV 8699 (S.D.N.Y), Litigation Release No. 21748 (November 18, 2010).

Attorneys

Federal Court Actions

Injunctive Proceedings

Administrative Proceedings — Commission Decisions

  • In the Matter of Ira Weiss, and L. Andrew Shupe II, A.P. File No. 3-11462, Initial Decision Release No. 275 (February 25, 2005) (initial decision of administrative law judge).
     
  • In the Matter of Ira Weiss, A.P. File No. 3-11462, Securities Act Release No. 8641, Securities Exchange Release No. 52875 (December 2, 2005) (opinion of the Commission).

Accountants/Auditors

Injunctive Proceedings

Commission Orders — Settled Administrative Proceedings

  • In the Matter of William F. Buettner, CPA, Exchange Act Release No. 50134, Accounting and Auditing Enforcement Release No. 2070, A.P. File No. 3-11571 (August 2, 2004).
     
  • In the Matter of Mount Sinai Medical Center of Florida, Inc., M. Brooks Turkel and Harvey W. Smith, Securities Act Release No. 8580, Securities Exchange Act Release No. 51797, Accounting and Auditing Enforcement Release No. 2254, A.P. File No. 3-11944 (June 7, 2005).
    See Obligated Persons section.

Sales Practices

Commission Orders — Settled Administrative Proceedings

  • In the Matter of Bear, Stearns & Co. Inc.; Citigroup Global Markets, Inc.; Goldman, Sachs & Co.; J.P. Morgan Securities, Inc.; Lehman Brothers Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Morgan Stanley & Co. Incorporated and Morgan Stanley DW Inc.; RBC Dain Rauscher Inc.; Banc of America Securities LLC; A.G. Edwards & Sons, Inc.; Morgan Keegan & Company, Inc.; Piper Jaffray & Co.; Suntrust Capital Markets Inc.; and Wachovia Capital Markets, LLC, Securities Act Release No. 8684, Securities Exchange Act Release No. 53888, A.P. File No. 3-12310 (May 31, 2006).
     
  • In the Matter of Robert K. Malkin and Cantella & Company, Inc., Securities Act Release No. 8747, Securities Exchange Act Release No. 54545, A.P. File No. 3-12447 (September 29, 2006).
     
  • In the Matter of 1st Global Capital Corp., Securities Exchange Act Release No. 54754, A.P. File No. 3-12479 (November 15, 2006).
     
  • In the Matter of Deutsche Bank Trust Company Americas, The Bank of New York, and Wilmington Trust Company, Securities Act Release No. 8767, A. P. File No. 3-12526 (January 9, 2007).
     
  • In the Matter of Citigroup Global Markets, Inc., successor by merger to Legg Mason Wood Walker Inc., Securities Exchange Act Release No. 55712, A.P. File No. 3-12629 (May 7, 2007).
     
  • In the Matter of D.M. Keck & Company, Inc. d/b/a Discount Munibrokers, Donald Michael Keck and Patricia Ann Seelaus, Securities Exchange Act Release No. 56543, A.P. File No. 3-12839 (September 27, 2007).
     
  • In the Matter of Regional Brokers, Inc. and Patrick Lubin, Securities Exchange Act Release No. 56542, A.P. File No. 3-12838 (September 27, 2007).
     
  • In the Matter of Morgan Stanley & Co. Incorporated, Securities Exchange Act Release No. 56634, A.P. File No. 3-12864 (October 10, 2007).
     
  • In the Matter of First Southwest Company, Securities Act Release No. 8919, Securities Exchange Act Release No. 57869, A.P. File No. 3-13046 (May 27, 2008).
     
  • In the Matter of Wolfe & Hurst Bond Brokers, Inc. and Peter J. Debany, Securities Exchange Act Release No. 59913, A.P. File No. 3-13469 (May 13, 2009).
     
  • In the Matter of TD Ameritrade, Inc., Securities Act Release No. 9053, Securities Exchange Act Release No. 60341, A.P. File No. 3-13557 (July 20, 2009).
     
  • In the Matter of Robert J. Bradbury and Dolphin and Bradbury, Incorporated, Securities Exchange Act Release No. 61132, A.P. File No. 3-13706 (December 9, 2009). See Underwriters section.
     
  • In the Matter of Jeffrey C. Young, Securities Exchange Act Release No. 61247, Investment Advisor Act Release No. 2967, A.P. File No. 3-13731 (December 29, 2009).
     
  • In the Matter of First Allied Securities, Inc., Securities Exchange Act Release No. 61655, Investment Advisors Act Release No. 2995, A.P. File No. 3-13808 (March 5, 2010).

Injunctive Proceedings

  • SEC v. Mark David Anderson, Civ. Action No. 04-1114 GAF (RCx) (C.D. Cal.), Litigation Release No. 18587 (February 23, 2004).
     
  • SEC v. Citigroup Global Markets, Inc., Civil Action No. 08 CIV 10753 (RMB); SEC v. UBS Securities LLC and UBS Financial Services Inc., Civil Action No. 08 CIV 10754 (S.D. NY), Litigation Release No. 20824 (December 11, 2008) (SEC Finalizes Auction Rate Securities Settlements with Citigroup and UBS Providing Nearly $30 Billion in Liquidity to Investors).
     
  • SEC v. Wachovia Securities, LLC, Civ. Case No. 09 CV 743 (N.D. Ill.), Litigation Release No. 20885 (February 5, 2009) (SEC Finalizes ARS Settlement with Wachovia, Providing Over $7 Billion in Liquidity to Investors).
     
  • SEC v. Banc of America Securities LLC and Banc of America Investment Services, Inc., Civ. Action No. 09-CIV-5170 (S.D.N.Y.), Litigation Release No. 21066 (June 3, 2009); SEC v. RBC Capital Markets Corporation, Civ. Action No. 09-CIV-5172 (S.D.N.Y.), Litigation Release No. 21066 (June 3, 2009); SEC v. Deutsche Bank Securities Inc., Civ. Action No. 09-CIV-5174 (S.D.N.Y.), Litigation Release No. 21066 (June 3, 2009) (SEC Finalizes ARS Settlements with Bank of America, RBC and Deutsche Bank, Providing Over $6 Billion in Liquidity to Investors).
     
  • SEC v. Morgan Keegan & Company, Inc., Civ. Action No. 09-CV-1965 (N.D. Ga.), Litigation Release No. 21143 (July 21, 2009) (Complaint).

Federal Court Actions

Consultants

Injunctive Proceedings

  • SEC v. Larry P. Langford and William B. Blount, Case No. 07-23271-MC-Huck-Simonton (S.D. Fla.), Litigation Release No. 20400 (September 17, 2007) (Application For an Order Enforcing Administrative Subpoenas).
     
  • SEC v. Larry P. Langford, William B. Blount, Blount Parrish & Co., Inc., and Albert W. LaPierre, Case No. cv-08-B-0761-S (N.D. Ala.), Litigation Release No. 20545 (April 30, 2008) (Complaint).

Commission Orders — Settled Administrative Proceedings

Federal Court Actions

  • U.S. v. Larry P. Langford, William B. Blount, and Albert W. LaPierre, Case No. 2:08-CR-00245-LSC-PWG (N.D. Ala.), Litigation Release No. 20821 (December 5, 2008) (Birmingham Mayor and Friends Indicted for Bribery Scheme in Connection with Municipal Bond Deals).

Credit Enhancers

Commission Orders — Settled Administrative Proceedings

  • In the Matter of Anchor National Life Insurance Company, n/k/a AIG SunAmerica Life Assurance Company, Securities Act Release No. 8852, A.P. File No. 3-12850 (September 28, 2007).

Bid-Rigging

Commission Orders — Settled Administrative Proceedings

Auction Rate Securities

Federal Court Actions

  • SEC v. UBS Securities LLC and UBS Financial Services, Inc., Civ. Action No. 08 CIV 10754 (S.D.N.Y), Litigation Release No. 21658 (September 21, 2010).
     
  • SEC v. Banc of America Securities LLC and Banc of America Investment Services, Inc., Civ. Action No. 08 CIV 5170 (S.D.N.Y), Litigation Release No. 21780 (December 15, 2010).

Last Reviewed or Updated: March 21, 2011