The city of South Miami, Florida, defrauded investors by not disclosing problems with the tax-exempt status of two bond deals, U.S. securities regulators said on Wednesday in their second municipal bond fraud-enforcement action this month. The U.S. Securities and Exchange Commission said the city agreed to settle the fraud charges and retain an independent consultant to oversee its municipal bond disclosures. The city settled without admitting or denying the SEC allegations. South Miami’s city manager was not immediately available to comment. The two deals at issue, so-called conduit bonds that were used to finance a mixed-use retail and parking structure, totaled $12 million and were made through the Florida Municipal Loan Council. More on Reuters here.
