Originally published on Tue March 12, 2013 4:33 am
For only the second time ever, the Securities and Exchange Commission is charging a state with fraud, for allegedly misleading investors about the health of its pension funds. The SEC says the state of Illinois did not properly inform investors that its pension funds were significantly underfunded when selling bonds from 2005 to 2009. This is the latest fiscal black eye for a state with a pension shortfall approaching a whopping $100 billion. The state has agreed to settle the charges.