South Miami Slapped With SEC Fraud Charges Over Bond Deals

SEC Charges Miami-Dade City With Fraud
A view of the Securities and Exchange Commission headquarters May 3, 2013 in Washington, DC. AFP PHOTO/Brendan SMIALOWSKI (Photo credit should read BRENDAN SMIALOWSKI/AFP/Getty Images)
A view of the Securities and Exchange Commission headquarters May 3, 2013 in Washington, DC. AFP PHOTO/Brendan SMIALOWSKI (Photo credit should read BRENDAN SMIALOWSKI/AFP/Getty Images)

WASHINGTON, May 22 (Reuters) - The city of South Miami, Florida, defrauded investors by not disclosing problems with the tax-exempt status of two conduit bond deals that were used to finance a mixed-use retail and parking structure, the U.S. Securities and Exchange Commission said on Wednesday.

The SEC said the city agreed to settle the fraud charges and retain an independent third-party consultant to oversee its municipal bond disclosures.

South Miami's city manager was not immediately available to comment on the charges.

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