2024-01-01 SEC Press press_release 64 KB 3,094 chars

SEC Charges 12 Municipal Advisors With Recordkeeping Violations

Release
2024-132
Caption
Securities and Exchange Commission v. 12 Municipal Advisors, et al.
Source PDF JSON
summary

The SEC charged 12 municipal advisory firms for failing to preserve electronic communications, resulting in over $1.3 million in combined civil penalties.

paragraph

Twelve municipal advisory firms agreed to pay more than $1.3 million in civil penalties to settle SEC charges regarding recordkeeping violations. The firms admitted to failing to maintain and preserve electronic communications related to municipal advisory activities, involving personnel at various levels of authority. Each firm was also censured and ordered to cease and desist from future violations of federal securities laws and MSRB rules.

narrative

The Securities and Exchange Commission announced charges against 12 municipal advisory firms for failing to maintain and preserve electronic communications required under federal securities laws. The firms, which include PFM Financial Advisors LLC and Specialized Public Finance Inc., admitted to violating recordkeeping provisions and MSRB rules. These failures involved personnel at multiple levels of authority, including supervisors, and related to off-channel communications. To settle the charges, the firms agreed to pay combined civil penalties exceeding $1.3 million and faced individual censures and cease-and-desist orders. Specific penalties ranged from $32,000 for Kaufman Hall & Associates LLC and Ponder & Company to $250,000 for both PFM Financial Advisors LLC and Specialized Public Finance Inc. The firms have already begun implementing improved compliance policies and procedures to address these deficiencies. The investigations were conducted by the SEC’s Enforcement Division Public Finance Abuse Unit.

Enriched metadata

Scheme
non-corporate (97%)
Outcome
charged
Civil penalty
$324,000
Victim loss
$1,300,000
Classified non-corporate(confidence 97%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
12 municipal advisorsacacia financial group inc.caine mitter and associates inc.cfx inc.conduct violated recordkeeping provisionscsg advisors inc.kaufman hall & associates llc and ponder & companymontague derose & associates llcpfm financial advisors llcphoenix advisors llcpublic resources advisory group inc.sec's investigationsSecurities and Exchange Commissionspecialized public finance inc.the facts set forth in sec orderszions public finance inc.
Keywords
civil penaltyagreedpaycivilpenaltymunicipal advisorssecmunicipaladvisorssecuritiesfirmssecurities lawspublic financeincrecordkeeping

Exhibits & Attached Documents (11)

Extracted insights

Dollar amounts 9
  • $1.30M $1.3 million $1M–$10M
  • $324K $324,000 $100K–$1M
  • $250K $250,000 $100K–$1M
  • $184K $184,000 $100K–$1M
  • $94K $94,000 $10K–$100K
  • $52K $52,000 $10K–$100K
  • $47K $47,000 $10K–$100K
  • $42K $42,000 $10K–$100K
  • $40K $40,000 $10K–$100K
Entities 16
  • company 12 municipal advisors
  • company acacia financial group inc.
  • company caine mitter and associates inc.
  • company cfx inc.
  • person conduct violated recordkeeping provisions
  • company csg advisors inc.
  • company kaufman hall & associates llc and ponder & company
  • company montague derose & associates llc
  • company pfm financial advisors llc
  • company phoenix advisors llc
  • company public resources advisory group inc.
  • agency sec's investigations
  • agency Securities and Exchange Commission
  • company specialized public finance inc.
  • agency the facts set forth in sec orders
  • company zions public finance inc.
Triples 19
  • SEC announced charges against 12 Municipal Advisors
  • The Firms agreed to pay Combined Civil Penalties of More Than $1.3 Million
  • The Firms admitted The Facts Set Forth in SEC Orders
  • The Firms acknowledged Conduct Violated Recordkeeping Provisions
  • Acacia Financial Group Inc. agreed to pay Civil Penalty of $52,000
  • Caine Mitter and Associates Inc. agreed to pay Civil Penalty of $94,000
  • cfX Inc. agreed to pay Civil Penalty of $42,000
  • CSG Advisors Inc. agreed to pay Civil Penalty of $40,000
  • Kaufman Hall & Associates LLC and Ponder & Company agreed to pay Civil Penalty of $324,000
  • Montague DeRose & Associates LLC agreed to pay Civil Penalty of $40,000
  • PFM Financial Advisors LLC agreed to pay Civil Penalty of $250,000
  • Phoenix Advisors LLC agreed to pay Civil Penalty of $40,000
  • Public Resources Advisory Group Inc. agreed to pay Civil Penalty of $184,000
  • Specialized Public Finance Inc. agreed to pay Civil Penalty of $250,000
  • Zions Public Finance Inc. agreed to pay Civil Penalty of $47,000
  • The Firms were charged with Supervision Failures and Violating Recordkeeping Provisions
  • The Firms were censured and ordered to cease and desist Future Violations of Recordkeeping Provisions
  • Members of the Enforcement Division's Public Finance Abuse Unit conducted SEC's Investigations
  • Ms. Olsen supervised Each of These Matters
PDF (from attached: pdf)
In re ACACIA FINANCIAL GROUP · Source
Text layers
Extracted body text (3,094c) 
The Securities and Exchange Commission today announced charges against 12 municipal advisors for failures by the firms and their personnel to maintain and preserve certain electronic communications. The firms agreed to pay combined civil penalties of more than $1.3 million to settle the SEC’s charges. The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct violated recordkeeping provisions of the federal securities laws, have begun implementing improvements to their compliance policies and procedures to address these violations, and agreed to pay the following civil penalties: Acacia Financial Group Inc. agreed to pay a civil penalty of $52,000; Caine Mitter and Associates Inc. agreed to pay a civil penalty of $94,000; cfX Inc. agreed to pay a civil penalty of $42,000; CSG Advisors Inc. agreed to pay a civil penalty of $40,000; Kaufman Hall & Associates LLC, together with Ponder & Company, agreed to pay a civil penalty of $324,000; Montague DeRose & Associates LLC agreed to pay a civil penalty of $40,000; PFM Financial Advisors LLC agreed to pay a civil penalty of $250,000; Phoenix Advisors LLC agreed to pay a civil penalty of $40,000; Public Resources Advisory Group Inc. agreed to pay a civil penalty of $184,000; Specialized Public Finance Inc. agreed to pay a civil penalty of $250,000; and Zions Public Finance Inc. agreed to pay a civil penalty of $47,000. “The books and records requirements are critical to facilitating Commission inspections and examinations of municipal advisors and in evaluating a municipal advisor’s compliance with the applicable federal securities laws,” said Rebecca Olsen, Deputy Chief of the SEC’s Division of Enforcement Public Finance Abuse Unit. “Municipal advisors are encouraged to assess their recordkeeping practices relating to off-channel communications. Firms that believe their practices do not comply with the securities laws are encouraged to self-report to the SEC’s Enforcement staff.” As described in the SEC’s orders, the firms admitted that, during the relevant periods, they failed to maintain and preserve communications sent and/or received by their personnel relating to municipal advisory activity and that these communications were records required to be maintained and preserved under the federal securities laws. The failures involved personnel at multiple levels of authority, including supervisors. The firms were each charged with supervision failures and with violating certain recordkeeping provisions of the Securities Exchange Act and the rules of the Municipal Securities Rulemaking Board. In addition to the financial penalties, each of the firms was censured and ordered to cease and desist from future violations of the relevant recordkeeping provisions. The SEC’s investigations were conducted by members of the Enforcement Division’s Public Finance Abuse Unit, including Kevin B. Currid, Brian Fagel, David Zhou, Sally Hewitt, Kristal P. Olson, Jonathan Grant, Silvana A. Quintanilla, and Louis Randazzo. Each of these matters was supervised by Ms. Olsen.
OCR text (3,094c · html-text · 99% conf) 
The Securities and Exchange Commission today announced charges against 12 municipal advisors for failures by the firms and their personnel to maintain and preserve certain electronic communications. The firms agreed to pay combined civil penalties of more than $1.3 million to settle the SEC’s charges. The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct violated recordkeeping provisions of the federal securities laws, have begun implementing improvements to their compliance policies and procedures to address these violations, and agreed to pay the following civil penalties: Acacia Financial Group Inc. agreed to pay a civil penalty of $52,000; Caine Mitter and Associates Inc. agreed to pay a civil penalty of $94,000; cfX Inc. agreed to pay a civil penalty of $42,000; CSG Advisors Inc. agreed to pay a civil penalty of $40,000; Kaufman Hall & Associates LLC, together with Ponder & Company, agreed to pay a civil penalty of $324,000; Montague DeRose & Associates LLC agreed to pay a civil penalty of $40,000; PFM Financial Advisors LLC agreed to pay a civil penalty of $250,000; Phoenix Advisors LLC agreed to pay a civil penalty of $40,000; Public Resources Advisory Group Inc. agreed to pay a civil penalty of $184,000; Specialized Public Finance Inc. agreed to pay a civil penalty of $250,000; and Zions Public Finance Inc. agreed to pay a civil penalty of $47,000. “The books and records requirements are critical to facilitating Commission inspections and examinations of municipal advisors and in evaluating a municipal advisor’s compliance with the applicable federal securities laws,” said Rebecca Olsen, Deputy Chief of the SEC’s Division of Enforcement Public Finance Abuse Unit. “Municipal advisors are encouraged to assess their recordkeeping practices relating to off-channel communications. Firms that believe their practices do not comply with the securities laws are encouraged to self-report to the SEC’s Enforcement staff.” As described in the SEC’s orders, the firms admitted that, during the relevant periods, they failed to maintain and preserve communications sent and/or received by their personnel relating to municipal advisory activity and that these communications were records required to be maintained and preserved under the federal securities laws. The failures involved personnel at multiple levels of authority, including supervisors. The firms were each charged with supervision failures and with violating certain recordkeeping provisions of the Securities Exchange Act and the rules of the Municipal Securities Rulemaking Board. In addition to the financial penalties, each of the firms was censured and ordered to cease and desist from future violations of the relevant recordkeeping provisions. The SEC’s investigations were conducted by members of the Enforcement Division’s Public Finance Abuse Unit, including Kevin B. Currid, Brian Fagel, David Zhou, Sally Hewitt, Kristal P. Olson, Jonathan Grant, Silvana A. Quintanilla, and Louis Randazzo. Each of these matters was supervised by Ms. Olsen.

Related documents (11)