The U.S. Securities and Exchange Commission says Kansas violated federal law in 2009 and 2010 by not disclosing enough information when selling state bonds. The same announcement also says that while Kansas committed fraud, the state has taken steps to fix the disclosure issues. KPR’s Stephen Koranda reports.
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The announcement says that when Kansas was selling bonds, the state didn’t properly disclose the projected deficit in the Kansas Public Employees Retirement System, or KPERS. The SEC says that was information that investors needed to know but instead they received an incomplete picture of the state’s finances. The violations occurred before Governor Sam Brownback took office. In a news release, Brownback says the state has made progress in reducing the KPERS deficit and improving transparency. The SEC ordered the state not to repeat the violations, but the agency will not issue any fines.