SEC announces fraud charges against state of Kansas

The Sunflower State is in hot water with the Securities and Exchange Commission after it allegedly failed to disclose pertinent information on a series of bond offerings.

The SEC filed fraud charges Monday saying the Kansas Development Finance Authority raised $273 million through eight series of bonds between 2009 and 2010, without disclosing a potential investor risk – the Kansas Public Employees Retirement System was significantly underfunded.

The Kansas City Business Journal reports the state has taken remedial action for its pension disclosures and has agreed to cease-and-desist proceedings without admitting or denying the findings.

About 14,000 employers participate in KPERS.

Read more from the Kansas City Business Journal.