SEC: Illinois Misled Investors

Mar 12, 2013

Republican Leader Says Investigation Highlights State's Pension Problem

Illinois has agreed to disclose more about its underfunded pensions systems following a Securities and Exchanges Commission investigation.

Rep. Tom Cross

When the state wants to borrow a lot of money, it sells municipals bonds to investors.

The SEC says those investors were misled when Illinois sold bonds between 2005 and the start of 2009.

House Republican Leader Tom Cross says the situation gets to the heart of why Illinois needs to overhaul its pension systems, which are underfunded by about $100 billion.

"It highlights the need once again to make sure that we have an accurate picture of our pension problem, making sure that we correct it and find a way to solve our problem in a comprehensive and substantive manner."  - Rep. Tom Cross

Governor Pat Quinn's administration says Illinois doesn't admit to wrongdoing in the settlement.  But the state has agreed to disclose more information, and Illinois has hired a law firm to review its disclosure practices. 

Illinois Public Radio's Amanda Vinicky contributed to this report.