SEC Charges City of South Miami with Defrauding Investors
City Agrees to Settle Matter Involving Tax-Exempt Status of Municipal Bonds
On, May 22, 2013, the Securities and Exchange Commission (SEC) charged the City of South Miami, Florida, with "defrauding bond investors about the tax-exempt financing eligibility of a mixed-use retail and parking structure being built in its downtown commercial district."
South Miami agreed to settle the SEC's charges and retain an independent third-party consultant. For three years, the consultant will conduct annual reviews of the city's policies, procedures and practices related to its disclosures for municipal securities offerings. South Miami must abide by the independent consultant's determinations and implement all recommendations.
The SEC press release with a link to the SEC Order can be found at: https://www.sec.gov/news/press/2013/2013-91.htm