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The City of Rochester, New York, and its former finance director appear set in fighting SEC charges that they defrauded investors in connection with a 2019 bond offering.
The SEC filed fraud charges against the City of Rochester, New York , former City executives, and the City’s municipal advisor alleging the City’s note offering documents were materially misleading to investors because of their reliance on outdated financial statements.
Capital Market Advisors responded to the Securities and Exchange Commission's claims that the charges are inconsistent or in excess of those imposed by the applicable laws.
They allege documents related to the $119 million bond offering were outdated, and didn't mention the RCSD's $25 million budget shortfall and overall financial distress.
The Securities and Exchange Commission has charged the City of Rochester, New York, its former finance director, former CFO and their municipal advisor with misleading investors in a $119 million bond offering.