The Securities and Exchange Commission has charged the city of Miami and its former budget director with securities fraud, saying it misled investors about its financial health in order to gain better terms on $153 million in bond offerings in 2009, the Wall Street Journal reported.
The SEC alleged that the city offered false information in its 2007 and 2008 financial reports in order to mask a widening deficit and gain higher ratings from credit-rating agencies, the Journal said.
The former budget director, Michael Boudreaux, “masterminded” a plot to make transfers between two city funds, the newspaper reported, citing the charge.
Ivan Harris, who is representing Miami for law firm Morgan, Lewis & Bockius, called the SEC action “unwarranted,” according to the Journal. [WSJ] — Emily Schmall