Miami Becomes First City Charged with Fraud by SEC

Miami Becomes First City Charged with Fraud by SEC

The city of Miami had better enjoy the shit out the Heat's back-to-back NBA Championships. For the moment, forget that one day the city will become the new Atlantis thanks to rising sea levels, because it has bigger problems right now. Like, for example, being charged with fraud by the SEC

According to the agency, Miami tried to hide its deficits by transferring almost $38 million from a capital improvement fund to a general fund. CNN Money says that former budget director Michael Boudreaux has also been charged for helping to write false reports for the 2007 and 2008 fiscal years, as well as lying about Miami's financial state in 2009 bond offerings amounting to $153.5 million.

Worse, this isn't the first time Miami has had its wrist slapped by the SEC. In 2003, the agency issued a cease-and-desist order to the city after discovering it was involved in similar activities. This is, however, the first time the SEC has acknowledged a city violating an earlier cease-and-desist order. 

Morgan, Lewis & Bockius, who the city has tapped for representation, say the charges were only filed because the statute of limitations is about to expire. In the wake of the city becoming the first to be charged with fraud, what are Miami residents to do? Hit Collins Avenue and not care.

[via CNN Money and Gawker]

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