Miami Hit With SEC Suit Over Bond Offerings Fraud

Law360, New York (July 19, 2013, 7:33 PM EDT) -- The U.S. Securities and Exchange Commission launched suit in Florida federal court Friday accusing the city of Miami of fraudulently making multimillion-dollar budget transfers and bond offerings that misled investors about the city’s deteriorating financial health.

Miami officials allegedly transferred approximately $37.5 million between 2007 and 2009 from other funds set aside for capital projects — including some restricted funds — to fill growing gaps in the general fund, which kept falling below its $100 million reserve level, the SEC contends in its 40-page complaint. By...
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