Miami Latest City Facing SEC Scrutiny Over Bond Offerings

Law360, New York (July 24, 2012, 7:22 PM EDT) -- The U.S. Securities and Exchange Commission is considering whether to sue the city of Miami for allegedly misleading investors about its financial health before selling them bonds, a rare action that could put city officials on the hook for endorsing deceptive budget documents, experts say.

On Monday, SEC staffers sent a letter to the city saying they had decided to recommend that the commission bring a civil injunction action against it for deceiving investors ahead of bond offerings in 2007 and 2008. The city allegedly moved...
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