What to Know
- Federal investigators had been looking into whether the Port Authority board had the authority to divert funds to the Pulaski projects
- The Port Authority has agreed to pay $400,000 as part of the settlement
- The agency said it also implemented several key governance reforms in the wake of the investigation
The Port Authority of New York and New Jersey will pay $400,000 to settle charges it misled investors by failing to disclose disputes within the agency about the legality of a scheme to use the authority's money to repair New Jersey roads.
The Securities and Exchange Commission announced the settlement Tuesday.
The SEC says the Port Authority sold $2.3 billion worth of bonds to investors without revealing internal discussions about whether certain projects, including the Pulaski Skyway, were legal to pursue.
The Port Authority says no bond proceeds were used to fund the projects, so no bondholders suffered losses.
The agency says it has redoubled efforts to adhere to the highest ethical standards.
Copyright AP - Associated Press