The U.S. Securities and Exchange Commission may sue Miami over whether the city adequately disclosed financial information when it raised money from investors.
The SEC on Monday told Miami that its staff, after a more than two-year probe, plans to recommend that the agency’s commissioners bring civil fraud charges, the Florida city said in a disclosure to investors yesterday.
The SEC has been investigating the city since at least December 2009, when it sought information about the transfer of money for capital projects to the city’s general fund in 2007 and 2008. The transfers made the city’s finances appear stronger as it dealt with flagging property taxes and growing pension obligations.
The city said it plans to argue against a lawsuit.
“The city respectfully disagrees with the SEC staff’s position and intends to present information to the SEC’s commissioners demonstrating that such challenges are not warranted,” it said in the filing.