All attorneys representing municipal and other public sector clients should be aware of the potential for a U.S. Securities and Exchange Commission (SEC) investigation of their clients' public bond deals. Issuers generally will hire a team of professionals with specialized experience in public finance to assist them in completing a financing; such professionals commonly include bond counsel, disclosure counsel, and a municipal advisor. But even the general practice solicitor that handles all day-to-day legal issues for the client will play an important role in the financing process.

Sometimes the best lessons are learned from studying the mistakes of others. In recent months, the SEC has publicized the results of multiple enforcement actions involving municipal bond financings. In each case, the issuers and other involved parties were charged with providing false and misleading information.