Article: California county innocent of fraud, SEC is told.(Nevada County, California)

Several prominent municipal market participants have come to the defense of Nevada County, Calif., in its attempt to avoid securities fraud charges alleged by the staff of the Securities and Exchange Commission.

In affidavits submitted to the SEC, lawyers and financial advisers said the county is in fact a victim of fraud, and that county officials made every attempt to comply with federal securities laws in the course of approving and selling $9 million of Mello-Roos bonds in 1990.

The nonrated bonds, which fell into default last year, were issued on behalf of a northern California developer that has since gone out of business and is currently being sought by ...

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