WASHINGTON Nov 5 A special district in
Washington state settled Securities and Exchange Commission
charges of misleading bond buyers by paying a $20,000 fee, the
first time the federal regulators have assessed a financial
penalty against a municipal issuer, the SEC said on Tuesday.
The Greater Wenatchee Regional Events Center Public
Facilities District also agreed to undertake remedial actions
after it failed to make key disclosures in the official
statement for bond anticipation notes sold in 2008, including an
independent consultant's questions about the economic viability
of the project being financed, the SEC said.
In December 2011, the district defaulted on the $41.77
million of debt used to finance a new hockey arena and events
Underwriter Piper Jaffray & Co., also agreed to pay a
penalty, of $300,000, and to review its policies and procedures
on municipal underwriting. Meanwhile, lead investment banker
Jane Towery settled related charges by agreeing to pay a $25,000
fine. Developer Global Entertainment and its former president
Richard Kozuback will also pay $10,000 each, the SEC said.