SEC Settles Enforcement Actions Against Municipal Bond Offerings Participants for Violations That Put at Risk the Bonds' Tax-Exempt Status

Washington, D.C., September 28, 2007 - The Securities and Exchange Commission today announced settled enforcement actions against two California companies for their failure to disclose a fee agreement that created a risk to investors that interest on $650 million of municipal bonds might lose its tax-exempt status. The charges against CDR Financial Products, Inc. (formerly known as Chambers, Dunhill, Rubin & Co.) and Anchor National Life Insurance Company, (now doing business under the name of AIG SunAmerica Life Assurance Company) relate to three municipal bond offerings in Florida.Chairman Christopher Cox said, "Municipal bond investors deserve full and fair disclosure of the important facts about their investments, including particularly the facts that bear on the tax status of their bonds. Today's enforcement actions demonstrate our continued commitment to upholding integrity in this critical market, and the protection of investors in municipal bonds."Linda Chatman Thomsen, Director of the Commission's Division of Enforcement," said "The tax-exempt status of municipal bonds is of paramount importance to investors who buy them. In these bond offerings, information was not disclosed that could have jeopardized this status. These enforcement actions reaffirm disclosure obligations that provide important protection to municipal bond investors."David Nelson, Director of the SEC's Miami Regional Office, said, "Our dedication of staff and resources to these enforcement actions should remind participants in municipal bond offerings that we remain committed to protecting those who invest in the bonds."Martha Mahan Haines, Chief of the SEC's Office of Municipal Securities, added that, "CDR and Anchor served specialized functions in certain municipal bond offerings. Their fee agreement could have affected the tax-exempt status of the bonds. As a result, CDR and Anchor should have made sure it was disclosed."For the full article produced by the Securities and Exchange Commission please visit www.sec.gov.