New Jersey settles SEC securities fraud case

By Kathy Bergen
Posted Aug. 19, 2010 at 4:00 p.m.

The state of New Jersey has settled federal civil fraud charges of failing to inform bond investors that it had not met obligations to its largest pension plans, federal regulators said Wednesday.

The SEC declined comment on whether a similar investigation is under way in Illinois. The pension system here is the most underfunded in the nation, according to the Pew Center for the States, with only about half the money needed to cover more than $60 billion in liabilities.

The state office of management and budget, part of the governor’s office, said it was not aware of any probe.

“We have not been contacted by the SEC at all,” said Kelly Kraft, a spokeswoman for the budget office. “From our standpoint, we believe we have fully disclosed our pension fund issues.”

With the Associated Press

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