Illinois Settles SEC Fraud Claims Over Pension Funds

Law360, New York (March 11, 2013, 8:04 PM EDT) -- Illinois reached a settlement with the U.S. Securities and Exchange Commission on Monday resolving an investigation into alleged misinformation the state gave municipal-bond investors about the risks of its underfunded pension systems.

Illinois has already put policies in place to correct the alleged problems, and has issued financial statements with enhanced disclosures, but the state does not admit or deny any of the findings of the federal investigation as part of the settlement, the SEC said in announcing a cease-and-desist order against Illinois and the settlement...
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