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U.S. charges Ramapo, New York, officials in first municipal bond fraud case
Source: Reuters
World | Thu Apr 14, 2016 9:57am EDT
U.S. charges Ramapo, New York, officials in first municipal bond fraud case
NEW YORK | BY NATE RAYMOND AND JONATHAN STEMPEL
Two Ramapo, New York, officials have been indicted in what the federal government believes is the first criminal securities fraud prosecution involving municipal bonds.
A 22-count indictment unveiled on Thursday charges Christopher St. Lawrence, the town supervisor, and N. Aaron Troodler, former executive director of the non-profit Ramapo Local Development Corp, with securities fraud, wire fraud and conspiracy.
Municipal bonds issued by the town, which is 28 miles northwest of New York City, have been at the center of a long-running fraud probe into, among other things, a costly minor-league baseball stadium that the corporation built.
According to the indictment, bond investors lost millions of dollars after the defendants misled them about Ramapo's financial health, concealed the extent to which the town financed the stadium, and hid the corporation's "illiquidity."
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U.S. charges Ramapo, New York, officials in first municipal bond fraud case
NEW YORK | BY NATE RAYMOND AND JONATHAN STEMPEL
Two Ramapo, New York, officials have been indicted in what the federal government believes is the first criminal securities fraud prosecution involving municipal bonds.
A 22-count indictment unveiled on Thursday charges Christopher St. Lawrence, the town supervisor, and N. Aaron Troodler, former executive director of the non-profit Ramapo Local Development Corp, with securities fraud, wire fraud and conspiracy.
Municipal bonds issued by the town, which is 28 miles northwest of New York City, have been at the center of a long-running fraud probe into, among other things, a costly minor-league baseball stadium that the corporation built.
According to the indictment, bond investors lost millions of dollars after the defendants misled them about Ramapo's financial health, concealed the extent to which the town financed the stadium, and hid the corporation's "illiquidity."
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Read more: http://www.reuters.com/article/us-new-york-fraud-ramapo-idUSKCN0XB1BA