Illinois Settles SEC Fraud Charges Over Pension Fund Disclosures

Illinois agreed on Monday to settle federal civil securities fraud charges alleging the state misled municipal bond investors about how it funded its pension fund obligations.

Illinois was not ordered to pay a penalty under the terms of the settlement with the U.S. Securities and Exchange Commission.

However, the state implemented a number of remedial actions beginning in 2009 and cooperated with the SEC's probe. It settled without admitting to or denying the SEC's charges.

The case marks the second time the SEC has charged a state in connection with public pension disclosure failures. The SEC previously charged New Jersey in 2010.