On March 7, 2017, Aaron Troodler, the former Executive Director of the Ramapo Local Development Corporation (“RLDC”), pled guilty to conspiring with Ramapo Town Supervisor Christopher St. Lawrence to commit securities fraud in connection with a scheme to defraud investors in municipal bonds issued by the RLDC and the Town of Ramapo. According to the charging documents, Troodler and St. Lawrence lied to investors in the municipal bonds in order to cover up the Town of Ramapo’s deteriorating financial condition, and the inability of the RLDC to make scheduled payments of principal and interest to holders of its bonds from its operating revenue.  Troodler and St. Lawrence primarily lied to investors by making up false assets in the Town of Ramapo’s General Fund, which is the town’s primary operating fund.  According to the DOJ press release, this is believed to be the first conviction for federal securities fraud in connection with municipal bond issuances.  United States v. Troodler, 16 Cr. 259 (S.D.N.Y.). DOJ Press Release