U.S. SEC alleges Rochester city misled bond investors – statement

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FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C.

(Reuters) – The U.S. Securities and Exchange Commission said on Tuesday it charged the city of Rochester, New York, and its former executives and an adviser with misleading investors in a $119 million bond offering.

The SEC alleges that the officials misled investors with outdated financial statements and did not indicate that the Rochester City School District was experiencing financial distress due to overspending on teacher salaries, according to a statement from the watchdog.

(Reporting by Ismail Shakil in Ottawa; editing by Paul Grant)