SEC Prevails Against Muni Bond Adviser on Fee Disclosure (1)

Capital Market Advisors LLC failed to disclose conflicts of interest from its contingency fees when working with Rochester, N.Y., and other cities to issue municipal bonds and notes, violating rules for that sector, a federal court ruled.

The firm is liable to the Securities and Exchange Commission, Chief Judge Elizabeth Wolford said Monday for the US District Court for the Western District of New York. Penalties or other remedies will be considered later, she said.

The claims are contained in a suit against Rochester over about $119 million in short-term bond notes, which the SEC says led to a downgrade ...