Jury Finds Miami Defrauded Bond Investors In 2009

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MIAMI (CBSMiami/AP) — The U.S. Securities and Exchange Commission may seek civil penalties against the City of Miami after a federal jury found that it defrauded bond investors in 2009 by making the investments appear to be a better deal than they actually were.

The verdict came Wednesday the SEC’s civil lawsuit against the city and a former budget director.

The jury concluded the city acted knowingly or with recklessness that misrepresentations were made to investors about the $153 million in bonds. Jurors also found former budget director Michael Boudreax liable for securities law violations.

The case emerged as the city was shifting money between accounts to make it appear financially healthy, moves that later forced Miami to raise taxes and cut employee pay and benefits.

(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Comments

One Comment

  1. warren says:

    now that the city has a black eye attention should be brought to the attention of the voters that RGELADO was in charge… he should be on the chopping block for not watch eye inch of turf his flock walks on….black eyes all around…thank the heavens above his daughter lost the primary

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