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SEC: Miami Misled Bond Investors On City Finances

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A view of downtown Miami as seen from Miami Beach. (Source: Rhiannon Ally/CBS4)

A view of downtown Miami as seen from Miami Beach. (Source: Rhiannon Ally/CBS4)

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MIAMI (CBSMiami) – The City of Miami is under fire from the Securities and Exchange Commission which claims it misled investors in millions of dollars in bonds about its financial health.

According to the City of Miami, it was notified that the SEC may file civil fraud charges against the city due to alleged federal violations.

In a letter sent back to the SEC, city officials stated the charges are unwarranted.

According to CBS4 News partner The Miami Herald, the SEC probe has been ongoing for more than two years. It revolves around a questionable move by Miami officials to make the city budget appear balanced just before issuing bonds to improve streets and sidewalks. A former city auditor also claimed publicly the city was using inaccurate and misleading budget practices.

The investigation is separate from an ongoing SEC probe into the financing of the Miami Marlins’ new ballpark.

(©2012 CBS Local Media, a division of CBS Radio Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. CBS4 news partner The Miami Herald contributed material for this report.)

 

 

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