The Securities and Exchange Commission recently charged the city of Harrisburg, Pa., with misleading investors about its financial health in the mayor’s annual “state of the city” address, as well as in its financial and budget reports. This is the first SEC action against a state or local government based on public statements made separately from required municipal bond disclosure documents. In re City of Harrisburg, Pa., File No. 3-15316, order instituting cease-and-desist proceedings filed (S.E.C. May 6, 2013). ...

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