Earlier this month, Illinois became the second state ever to be the target of a cease and desist order from the US Securities and Exchange Commission for fraud related to its state-backed securities.
D. Daxton White, an attorney at the White Law Group, a securities law firm in Boca Raton and Chicago, said the SEC seems to be increasing its focus on state securities.
He said, “I believe the SEC’s investigation of Illinois and its sales of municipal bonds may be a strategic shift by the SEC.”
“Given that the SEC has already launched a similar investigation into the State of New Jersey… it appears the (SEC) will be more closely scrutinizing the sale of municipal bonds by various states,” White continued.
Last modified: November 29, 2022