SEC finds N.J. acted 'negligently' by failing to describe pension obligations to investors

The U.S. Securities and Exchange Commission found New Jersey acted "negligently" by failing to include adequate descriptions of its pension fund obligations to bond investors between 2001 and 2007, the state attorney general said today. The state failed to include information about benefits, including a 9 percent increase granted in 2001, in information provided to investors who bought $26 billion...

The U.S. Securities and Exchange Commission found New Jersey acted "negligently" by failing to include adequate descriptions of its pension fund obligations to bond investors between 2001 and 2007, the state attorney general said today.

The state failed to include information about benefits, including a 9 percent increase granted in 2001, in information provided to investors who bought $26 billion in bonds, the attorney general's office said. After the inquiry began in 2007, the state updated its disclosure practices, the attorney general's office said.

The state and the S.E.C. reached an agreement to the inquiry that included a cease-and-desist order that did not involve fines or penalties.

"While the state did not admit or deny the S.E.C.’s findings in the order, it agreed not to commit or cause any future violations," a statement from the attorney general's office said.

Read the full SEC order here.

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