SEC Charges Alabama Mayor in Bond Case

WASHINGTON -- The Securities and Exchange Commission on Wednesday said it has charged the mayor of Birmingham, Ala., and two of his friends in connection with an undisclosed payment scheme in municipal bond deals, Reuters reported.

The SEC said the chairman of Alabama investment bank Blount Parrish & Co made more than $156,000 in undisclosed payments to Mayor Larry Langford related to municipal bond offerings and swap agreements Langford directed on behalf of Jefferson County, Alabama, Reuters reported.

Blount Parrish, which reaped millions of dollars in fees from the deals, and its chairman, William Blount, were also charged, the SEC said, Reuters reported.

Neither a spokeswoman for Langford nor his lawyer were immediately available to comment on the SEC action, Reuters reported.

The SEC said it is seeking financial penalties against the defendants as well as disgorgement of gains, Reuters reported.

-- NYSSCPA.org News Staff

Posted on 5/1/08