SEC: Harrisburg, Pa., misled bond investors with incomplete, outdated financial information

HARRISBURG, Pa. – The U.S. Securities and Exchange Commission says it’s settling new charges that Pennsylvania’s capital city provided bond investors with “incomplete or outdated” information about its troubled finances.

The SEC says the charges announced Monday against Harrisburg represent the first time a municipality has been accused of misleading statements made outside of securities disclosures. It says the city made misleading statements in a budget report, financial statements and “state of the city” address.

The SEC cites Harrisburg’s co-operation in the investigation and work to create new disclosure procedures. Mayor Linda Thompson says she’s committed to ensuring the city provides accurate and complete information about its finances.

Harrisburg is currently operating with a state-appointed receiver as it struggles with a massive debt and has trouble paying its day-to-day bills.