On July 29th, the SEC charged a school district in Indiana and its municipal bond underwriter with falsely stating to bond investors that the school district had been properly providing annual financial information and notices required as part of its prior bond offerings. An SEC investigation found that in an official statement prepared in 2007 for a bond offering on behalf of West Clark Community Schools that was underwritten by Indianapolis-based City Securities Corporation, the school district stated that it was in compliance with its disclosure obligations related to prior bond offerings. However, West Clark had not submitted any of the required annual reports or notices for a 2005 bond offering, and City Securities did not conduct adequate due diligence to detect the false statement in the course of the 2007 offering. The SEC also charged Randy G. Ruhl, who heads the public finance and municipal bond department at City Securities, for the misconduct involving West Clark's disclosures. The SEC's investigation further found that City Securities and Ruhl provided improper gifts and gratuities to representatives of municipal bond issuers, and then charged these and other expenses back to the issuers under the guise of costs for "printing, preparation and distribution of official statements." Without admitting or denying the allegations, City Securities agreed to pay nearly $580,000 to settle the SEC's charges. Ruhl and West Clark Community Schools agreed to a one-year collateral bar and a permanent supervisory bar for Ruhl. SEC Press Release.