Illinois broke federal securities laws in misstating the true health of the state's depleted pension funds when going out onto the bond market between 2005 and early 2009, the Securities and Exchange Commission (SEC) announced today.
The action focuses mostly on misstatements made during Democrat Gov. Rod Blagojevich's administration, though Democrat Gov. Pat Quinn's administration wasn't spared entirely in the federal order.
"Time after time, Illinois failed to inform its bond investors about the risk to its financial condition posed by the structural underfunding of its pension system," said George S. Canellos, Acting Director of the SEC's Division of Enforcement in a prepared statement. ...More HERE