Kansas Charged With Securities Fraud — How Deep Was Brownback Involved?
Most theocratic types are demonstrated over time to be serial and pathological liars. It turns out that we might have another case of that in Kansas. This smells to high heavens like someone trying to cover up Kansas negatives before the election cycles.
The other thing you have to ask is: Would Brownback have been able to sell his draconian tax cuts if this were known by Kansas voters and Legislators? I don’t think Kansas would have voted for Brownback’s wild west libertarian tax cut experiment if they knew of the shortfall in full.
UPDATE: It appears that the malfeasance did not occur under Brownback, but prior to him, however why did it wait until post-primary elections for settlement if this is from 2009 & 2010?
See the statement from Governor Brownback here:
Update II: More from the New York Times, it appears that unnamed state officials removed the information - who did this and who knew what and when will be of interest this fall to voters in Kansas I imagine. dealbook.nytimes.com
The Securities and Exchange Commission on Monday said it would file charges against the state of Kansas, alleging that bond documents failed to disclose just how much of the state’s pension system was underfunded.
Kansas Gov. Sam Brownback answers questions for reporters at the Statehouse on July 23, 2014, in Topeka. (AP)
The SEC said a series of bond offerings from 2009 and 2010, which raised $273 million for the state, did not disclose the unfunded liabilities owed by the Kansas Public Employees Retirement System. The documents required by the SEC also failed to disclose the amount of debt service payments those unfunded liabilities would require.
The commission blamed a lack of communication between the Kansas Development Finance Authority, which issues the bonds, and the Department of Administration, which provided the information required in the filings.
