Articles Tagged with Beaumont Financing Authority

Beaumont Financing AuthorityPublicly available records provided by the Securities and Exchange Commission (SEC) and accessed on September 22, 2017 indicate that the SEC has charged a California-based municipal financing authority called the Beaumont Financing Authority in connection to alleged false statements regarding five bond offerings. Fitapelli Kurta is interested in hearing from investors who have complaints regarding the Beaumont Financing Authority.

According to an SEC press release published on August 23, 2017, the SEC announced that the Beaumont Financing Authority “and its then-executive director have agreed to settle charges that they made false statements about prior compliance with continuing disclosure obligations in five bond offerings.” This settlement was concurrent to a settlement by the offerings’ underwriting firm, O’Connor & Company Securities (CRD# 146787), and its co-founder.

The SEC’s complaint states: “the Beaumont Financing Authority had issued approximately $260 million in municipal bonds in 24 separate offerings from 2003 to 2013 for the development of public infrastructure. For each of those offerings, a community facilities district established by Beaumont agreed to provide investors with annual continuing disclosures, including important financial information and operating data. From at least 2004 to April 2013, the district regularly failed to provide investors with the promised information. The Beaumont Financing Authority failed to disclose this poor record of compliance when it conducted the 2012 and 2013 offerings totaling more than $32 million. As a result, the bonds appeared more attractive and investors were misled about the likelihood that the district would comply with its continuing disclosure obligations in the future.”