The St. Petersburg Times has reported today that a Florida government agency is the subject of a Securities and Exchange Commission (SEC) fraud investigation. The Florida State Board of Administration (FSBA), an agency charged with managing over $100 billion in public investments including that of local governments and one million current and future retirees, is at the center of the inquiry.
The SEC is investigating whether the FSBA, in conjunction with JPMorgan Chase, Credit Suisse, and Lehman Brothers, misled the public with false statements about the liquidity and risk of some FSBA investments. The involvement of a government agency on the receiving end of an SEC inquiry is an unusual occurrence.
Though the investigation has been ongoing for over a year now, the FSBA never made public its involvement in any such SEC inquiry. The only reason it is now being reported is because of a St. Petersburg Times public records request.
The FSBA has been subpoenaed to hand over documents in connection with this ongoing investigation.