Underwriter of Municipal Bonds Issued by Washington’s Wenatchee Valley Region Investigated
The underwriter of a municipal bond offering conducted by Washington State’s Greater Wenatchee Regional Events Center Public Facilities District is being investigated by the securities lawyers at the Peiffer Wolf law firm, for its role in the promotion of that offering.
The Greater Wenatchee Regional Events Center Public Facilities District offered a series of municipal bonds to finance the construction of a regional events center and ice hockey arena, according to charges filed by the Securities and Exchange Commission against the municipal issuer and the underwriter, among others.
The Greater Wenatchee bond offering raised over $41 million starting in late 2008. The Greater Wenatchee District defaulted on the payment of the bonds’ principal in December 2011, according to regulatory documents reviewed by securities lawyers Jason Kane and Joe Peiffer.
The underwriter of the muni bonds issued by the Greater Wenatchee Regional Events Center Public Facilities District, failed to conduct adequate due diligence on the Wenatchee District bond offering, the federal securities regulators charged.
Specifically, the regulators identified a number of important inaccuracies in the bond offering documents distributed to prospective investors in 2008. The offering documents had failed to include important disclosures regarding the Center’s questionable economic viability and the City of Wenatchee’s ability to support the bonds, according to the regulators.
The Peiffer Wolf attorneys are investigating whether or not the underwriter may be held liable by some of the investors in the muni bonds offered by the Greater Wenatchee Regional Events Center Public Facilities District.
“Underwriters of startup projects are critical gatekeepers and have a crucial duty to conduct adequate due diligence as to such projects before agreeing to promote them to the investing public,” said attorney Jason Kane, one the securities lawyers investigating this matter.
The underwriter has settled the SEC charges and agreed to be censured and pay a fine of $300,000, without admitting or denying the SEC’s findings.
Investors in the Greater Wenatchee Regional Events Center Public Facilities District may contact the Peiffer Wolf securities lawyers Jason Kane or Joe Peiffer, at 585-310-5140, for a free, no-obligation evaluation of their investment recovery options.
Investors should be mindful that claims of this type are often governed by strict statutes of limitations and may be lost forever if not timely filed.