CHICAGO - Harvey, Ill., and its comptroller, Joseph T. Letke, misused bond proceeds and misrepresented investment risks, the Securities and Exchange Commission alleged in a civil complaint that supported a successful request to block a planned debt issue by the Chicago suburb.

The SEC said the bonds were being fraudulently marketed to investors and a federal judge Wednesday granted the SEC's request to block the deal, which had been expected as soon as this week.

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