SEC Charges GE Funding Capital Market Services with Fraud Involving Municipal Bond Proceeds

According to the SEC’s complaint filed in U.S. District Court for the District of New Jersey, in addition to fraudulently manipulating bids, GE Funding CMS made improper, undisclosed payments to certain bidding agents in the form of swap fees that were inflated or unearned. These payments were in exchange for the assistance of bidding agents in controlling and manipulating the competitive bidding process.

via SEC Charges GE Funding Capital Market Services with Fraud Involving Municipal Bond Proceeds; 2011-276; December 23, 2011.