Get the popcorn going. This could get real good. Do we smell heavy RAT corruption yet???
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SEC Investigation of California Governments Worried About Climate Change
freebeacon ^ | February 2, 2018 | Todd Shepherd / FR Posted by MarvinStinson
A free-market think tank is asking the Securities and Exchange Commission for an investigation into possible bond fraud by local and municipal governments that claim they will be harmed by climate change. The Competitive Enterprise Institute (CEI) says a number of municipalities, most of them in California, are suing oil and gas companies for future damages because of climate change, and in doing so are often explicit in their forecasts of predicted sea-level rise and monetary damages. However, when those same cities sell bonds to investors, they're being far more generic in their claims of future catastrophe.
"In their suits against oil and gas companies, California's cities and counties claim that there are clear risks from manmade climate change," CEI's General Counsel Sam Kazman said in a statement. "But when it comes to selling their municipal bonds to the public, they say just the opposite. This is hypocritical double-talk, and it may well violate federal law against securities fraud." CEI cites a lawsuit against oil and gas giants including BP, Chevron, and Exxon in which the City of San Francisco claims they are expecting short-term costs of $500 million, and long-term costs of $5 billion as a result of climate change. San Francisco's attorneys argue that, "By 2050, for example, a ‘100-year flood' in San Francisco is expected to occur on average once every year, and by 2100 to occur 92 times per year—or almost twice per week." The sea level increase caused by climate change "threatens the safety and lives of San Francisco residents," according to the suit.
However, in a bond offering from earlier this year the city stated, "The City is unable to predict whether sea-level rise or other impacts of climate change or flooding from a major storm will occur, when they may occur, and if any such events occur, whether they will have a material adverse effect on the business operations or financial condition of the City and the local economy." Potential damages to the city could harm the city's ability to repay the bonds, which might affect a person's willingness to invest.
"Investors across the country have relied upon the statements by these municipalities in choosing to invest in their bonds. They deserve accurate information as to the potential risks of their investments," CEI wrote in a letter to the SEC's Public Finance Abuse Unit requesting an investigation. CEI says other California governments have done the same, such as the City of Oakland, Imperial Beach, and Marin and San Mateo counties.
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REFERENCE----A muni-bond expert exposed Chicago's bond financing scheme as a house of cards. An examination of the city's bond documents uncovered taxpayers paying billions for greedy politicians shady financial legerdemain, including:
<><>(1) using long-term financing to cover day-to-day expenses,
<><>(2) using bond proceeds to pay pension obligations, and,
<><> (3) misappropriating returns from the interest rate swap portfolio (a sub rosa ATM for paying the citys day to day expenses).
The stench from Chicago's poplitical sleaze is permeating the putrid city hall air... starting w/ Obama's ex-COS Chi/Mayor Rahm Emanuel. ....and remember, these kingpins of Chicago criminal politics moved into DC with Chicago kingpin Barack Obama.
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ANALYSIS Bonding is eternal taxation----the insider deals bonding companies made w/ shady pols to get bonding business would tell a tale of greedy pols accumulating riches through massive govt corruption.If these bonding deals were effectuated by way of referendum at the ballot box----and misled investors into buying tax-fee muni bonds----the SEC would be interested.
EMAIL enforcement@sec.gov
Massive govt corruption might include forgery, falsification of official records, fraudulent state budget entries, tax evasion, illegal wire-transfers, misuse of public office.
Tax-exempt municipal bond investors (including public education bond investors)-- have legal grounds to sue if they were deceived about deceptive bond offerings. In many cases, bond issues are approved by voters---at the ballot box--so that voters may have also been misled WRT uses of fraudulent bond offerings.
Also culpable are:
<><> bonding companies underwriting possible fraudulent bond issues;
<><> banks holding possibly fraudulent bond proceeds;
<><> State/city's modus operandi in allocating tax-exempt bond proceeds,
<><> the sub rosa acceptance of bond proceeds.
<><> state/city vendors accepting possible fraudulent bond proceeds.
<><> publicly-funded state/city agencies advocating the uses of fraudulent bond proceeds.
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The SEC, FBI, banking overight agencies, and the IRS, would be interested in the activities of state/city entities WRT bonding.
EMAIL---FBI TIPS PAGE https://tips.fbi.gov
EMAIL--enforcement@SEC.gov
Contact the IRS Fraud Unit
EMAIL Banking oversight agencies
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Taxpayers should find out which banks are facilitating this.
<><> Which banks are designated the official repositories of municipal tax dollars.
<><> Which banks are dispensing the ill-gotten proceeds....and to whom.