Indiana school district defrauded investors: SEC

http://www.marketwatch.com/story/indiana-school-district-defrauded-investors-sec-2013-07-29?link=MW_latest_news

The Securities and Exchange Commission charged an Indiana school district and a municipal bond underwriter with defrauding investors, marking the first time a municipal issuer has been charged for falsely claiming in an offering document that it had complied with annual disclosure requirements that it had agreed to in a previous offering document. In a 2005 bond sale, the school district agreed to annual disclosure obligations, and then falsely claimed that it complied with those obligations in another bond offering in 2007, the SEC said Monday. West Clark Community Schools has agreed to a settlement without admitting or denying wrongdoing, and the underwriter, City Securities, will pay nearly $580,000, the SEC said Monday.