SEC Charges Illinois with Securities Fraud for Failing to Properly Fund Public Pensions
As Illinois Governor Pat Quinn looks to overhaul his state’s pensions system, the SEC is stepping in with charges that officials misled investors.
An investigation shows that a series of political decisions almost two decades in the making have left Illinois with only 40 cents of assets for every dollar of pension liabilities. The national average for states is roughly 75 cents of assets for each dollar of pension liabilities. The pension shortfall in Illinois is now close to $100 billion.
On Monday, the SEC charged the state of Illinois with securities fraud, making it only the second state in history to be charged with such a crime (New Jersey was charged with securities fraud in 2010). In a statement, George