New Orleans, Louisiana and Cleveland, Ohio (PRWEB) November 07, 2013
The promoters of a municipal bond offering conducted by Washington State's Greater Wenatchee Regional Events Center Public Facilities District are being investigated by the securities lawyers at the Peiffer Rosca law firm, following allegations of misconduct by the federal securities regulators.
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, in SEC Admin. Proc. File No. 3-15603, Sec. Exch. Rel. No. 70804/November 5, 2013.
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 Alan Rosca 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.
"If the underwriters are doing their jobs, they look to see whether the borrower can pay back the bonds," said Peiffer. “If not, they shouldn't sell them to unsuspecting investors. It looks like the regulators here are saying that the underwriters didn't do their job and the public suffered."
The Peiffer Rosca securities attorneys are investigating the role played by certain promoters of the Greater Wenatchee Regional Events Center Public Facilities District bonds, to determine whether or not such promoters may be held liable for investor losses.
"Promoters of securities are critical gatekeepers and have a crucial duty to conduct adequate due diligence as to such projects before agreeing to offer such securities to the investing public," said attorney Alan Rosca, one the securities lawyers investigating this matter.
Investors in the Greater Wenatchee Regional Events Center Public Facilities District may contact the Peiffer Rosca securities lawyers Alan Rosca or Joe Peiffer, toll free at 888-998-0520, 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.
Visit http://www.securitieslitigators.com/index.php/blog/2013/11/underwriter-of-municipal-bonds-issued-by-washingtons-wenatchee-valley-region-investigated for more information on this case and the Peiffer Rosca law firm.
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