McAlester city councilors voted Tuesday night to authorize the chairman of the McAlester Public Works Authority to sign an engagement letter with Municipal Financial Services, Inc. for municipal advisor services associated with the city’s water system improvement project financing.
Voting yes were Weldon Smith, Cully Stevens, Billy Jack Boatright, and Mayor John Browne. Voting no were Steve Cox and Zach Prichard.
Meanwhile, documents issued by the U.S. Securities and Exchange Commission website and obtained by the News-Capital state that cease and desist proceedings were instituted in 2017 against Municipal Financial Services as well as Jon Wolff and Rick A. Smith, of MFSOK. Wolff and Smith attended the meeting.
In anticipation of the 2017 proceedings by the Securities and Exchange Commission, Smith and Wolff submitted settlement offers, which the federal agency accepted, according to its documents.
As part of the agreement, Municipal Finance Services OK was ordered to pay $50,000 to the Securities and Exchange Commission. In addition, Wolff and Smith were both ordered to pay $8,000 each in civil penalties and certify in writing corrective measures that have been taken.