...Today CEI asked the Securities and Exchange Commission to investigate these activities as possible securities fraud. Federal law prohibits deceiving investors through untrue material facts or material omissions. The municipalities claim to the court that they are able to predict these sea level changes. If that is true, then they are deceiving investors. 

...There are two possible reasons why these municipalities have told the courts different statements than investors. First the municipalities may be trying to get more money from bonds then they would be able to get if they were honest about their true beliefs...The second possible reason is that these municipalities are actually lying to the courts instead of investors by fabricating their predictions of sea level rise. 

[Read the Competitive Enterprise Institute's letter to the Securities Exchange Commission here]