HARRISBURG, PA-The city of Harrisburg has settled fraud charges leveled against it by the Securities and Exchange Commission that accused the city of misleading the public and investors about the poor condition of its finances.
In its settlement with the agency, the city has agreed to implement new policies to prevent the dissemination of inaccurate information to the pubic, the court order states.
Harrisburg officials made misleading statements in 2009 and omitted relevant information in the city's budget report, annual and mid-year financial statements, which violated the anti-fraud provisions of the Exchange Act, according to the Pennsylvania Independent
“These public officials' statements were the principal source of significant, current information about the issuer of the security and thus could reasonably be expected to influence investors and the secondary market,” the SEC stated in a report that detailed the fraud charges. See story in the Pennsylvania Independent.
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