The Garden State has made history again: The Securities and Exchange Commission says it sued New Jersey for "securities fraud for misrepresenting and failing to disclose to investors in billions of dollars worth of municipal bond offerings that it was underfunding the state's two largest pension plans." The problem: NJ allegedly sold over $26 billion of municipal bonds, but the offering plans "created the false impression that the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS) were being adequately funded, masking the fact that New Jersey was unable to make contributions to TPAF and PERS without raising taxes, cutting other services or otherwise affecting its budget." NJ settled the charges without admitting wrongdoing.