WASHINGTON (Reuters) - The Securities and Exchange Commission charged the city of Miami and its former budget director with fraud on Friday for allegedly making misleading statements and omissions in bond documents in order to mask general fund deficits.
The regulatory agency said it was seeking injunctive relief and financial penalties from the city as well as from former budget director Michael Boudreaux.
Noting that the city was already under a cease-and-desist order for similar misconduct in 2003, the regulators said in a written statement that starting in 2008 Boudreaux had moved money among city funds to disguise financial weaknesses from investors looking at three 2009 bond deals worth $153.5 million.
"Miami actively marketed bonds to the investing public, while hiding the true reason for interfund transfers to boost the image of its primary operating fund," said George Canellos, co-director of the SEC's Division of Enforcement.
Nearly a year ago, lawyers for Miami offered to shake up its financial staff as part of a proposal to settle the looming civil securities-fraud charges.
(Reporting by Lisa Lambert; Editing by Tiziana Barghini and Eric Beech)
Source: http://news.yahoo.com/u-regulators-charge-miami-ex-budget-director-fraud-200938967.html
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