Birmingham Municipal Sewer Bonds
Sat March 16, 2013
SEC Wants Trial Date in Ala. Suit Against Bankers
Federal regulators are asking a federal judge in Birmingham to set a trial date and avoid further delays in a civil fraud lawsuit against two former bankers accused of making payoffs to win billions of dollars in deals involving municipal sewer bonds.
Al.com reports (http://bit.ly/Zy7Uik ) attorneys for the U.S. Securities and Exchange Commission asked a judge last week to set a trial date in its 2009 lawsuit. It accuses ex-bankers Charles LeCroy and Douglas MacFaddin of paying $8.2 million to friends of Jefferson County officials so that J.P. Morgan Securities Inc. could obtain $5 billion in Jefferson County sewer bond offerings and other transactions.
Both LeCroy and MacFaddin, both former J.P. Morgan directors, oppose the case going to trial until a key witness can be deposed. Both men deny wrongdoing.
Copyright 2013 The Associated Press.