Beaumont City Councilman White & Bond Counsel Forebath Continue to ‘Speak to the Market’ with Lies and Deceit.
On August 23, 2017, the Securities and Exchanged Commission Issued a Cease and Desist Order against the Beaumont Financing Authority: https://www.sec.gov/litigation/admin/2017/33-10406.pdf
“Pursuant to Section 8A of the Securities Act, Respondent BFA cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act.”
At the March 6, 2018, Beaumont City Council Meeting Councilman Lloyd White specifically asked Bond Counsel Brian Forebath about the S.E.C. Order’s reference to forged documents, which Forebath denied.
Beaumont City Council Transcript March 6, 2018: https://www.youtube.com/watch?v=9FdUDIK3sVA
White: And a comment was made that the Cease and Desist Order, and I know we have to be careful with that because we have agreed to neither admit nor deny, that the Cease and Desist Order was the result of us forging documents. Can you comment on that?
Forebath: You know, I’m not aware of forged documents in the review of things that we’ve been through in terms of the investigations with the S.E.C., there have not been allegations that I’m aware of, of forged documents or approval of forged documents.
White: Does the S.E.C. Order settlement ever mention any problems with documents being forged?
46:00 Forebath: No it doesn’t.
Laws are written on a 9th grade reading level. It is possible that neither grown men, neither Forebath nor White, can read or comprehend on a 9th grade level?
‘untrue statement of material fact’ means that the documents were forged = falsifying a document.
It’s a big problem when the Beaumont City Councilmen continue to depend on the deceit of their lawyers to justify their actions.
Securities Act of 1933
Fraudulent Interstate Transactions
SEC . 17. (a) It shall be unlawful for any person in the offer or sale of any securities (including security-based swaps) or any security- based swap agreement (as defined in section 3(a)(78) of the Securities Exchange Act) by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly—
(2) to obtain money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or
(3) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser.