Article: SEC's first pay-to-play case hailed, but bond lawyer raises doubts. (Escambia County, Florida; Terry D. Busbee; Preston C. Bynum of Stephens Inc.; Fredric Weber)

WASHINGTON - The SEC's enforcement action against a former Escambia County, Fla., official and an investment banker drew applause from most municipal market participants yesterday but skepticism from a bond lawyer who claimed that the commission will have trouble proving some of its charges.

A Securities and Exchange Commission official, however, said the commission is very confident its charges will prevail. This case, he said, is the first of a series of cases in which the commission will charge that securities fraud laws were violated when participants of municipal bond offerings failed to disclose financial benefits or conflicts of interest - information that was ...

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