SEC Drops Inquiry Into Bond Dealings by O.C. Law Firm
The Securities and Exchange Commission has abandoned its investigation of Orange County law firm Rutan & Tucker for possible violations of securities laws in several bond deals, a lawyer for the firm said.
Instead, the SEC will focus on one lawyer at Rutan, the largest law firm based in Orange County, sources said.
Sparked by the county’s 1994 bankruptcy filing, the SEC’s investigation of Rutan & Tucker centered on work that the Costa Mesa law firm handled for a series of school and city bond deals designed to reap high returns in Orange County’s investment pool.
“The SEC has told us that Rutan & Tucker is not being viewed as a target in its inquiry anymore,” said Robert Friese, a San Francisco attorney for the law firm.
Last September, Rutan received a so-called Wells Notice, a warning that the firm would be accused in a civil action of failing to disclose material information about the county’s finances in the municipal bond deals. The firm sent the SEC a lengthy reply explaining its side.
“I’d like to think that things we and others brought to the SEC staff’s attention might have been helpful,” Friese said.
Friese identified the Rutan lawyer who remains under investigation as Stan Wolcott, a partner at the firm who received a Wells Notice personally. Wolcott could not be reached for comment.
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