MIAMI-The U.S. Securities and Exchange Commission filed securities fraud charges against the city of Miami and former budget director Michael Boudreaux on Friday.
The charges stemmed from several municipal bond offerings and other city disclosures made to investors, according to the South Florida Business Journal.
The charges allege that Boudreaux and the city transferred $37.5 million in 2007 and 2008 that was dedicated to specific city capital projects in order to hide growing deficits in the city's general fund.
“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,” stated George S. Canellos, co-director of the Division of Enforcement, in the news release.
Eric I. Bustillo, director of the SEC's Miami regional office, added, “Miami cannot continue to play shell games with its finances. Investors and the markets deserve complete transparency in assessing the city's municipal bond offerings.” See story in the South Florida Business Journal.
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