Sweetwater and Former Financial Officer Take Deal in SEC Fraud Case

Manipulating financial information that is reported during bond sales is a violation of the Securities Act, as VOSD reported back in November 2018, before the SEC’s investigation started.

Regulators would want to know, “Is it a mistake or was it intentional?” Matt Fabian, a bond markets researcher at Municipal Market Analytics, told VOSD at the time. “Even if it is a relatively small misrepresentation of information, regulators take that very seriously.”

SEC investigators ultimately found Michel misled investors as well as a credit rating agency.