Miami faces SEC fraud charges over bonds

Miami faces civil charges from SEC; former officials accused of misleading bond investors

Associated Press

MIAMI (AP) -- The Securities and Exchange Commission has charged the city of Miami and its former budget director with securities fraud.

The agency filed the civil complaint Friday in federal court.

An SEC investigation found that Michael Boudreaux made false and misleading statements and omissions about certain transfers in three 2009 bond offerings totaling $153.5 million. Similar misleading information was included in the city's fiscal year 2007 and 2008 Comprehensive Annual Financial Reports, which are distributed to bond investors.

The SEC says Boudreaux orchestrated the transfers from the city's capital improvement fund to its general fund in order to mask increasing deficits in the general fund. The complaint also says the city violated an SEC cease-and-desist order from 2003 based on similar misconduct.

Messages seeking comment from the city of Miami and Boudreaux's attorney weren't immediately returned.

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