The Securities and Exchange Commission has charged South Miami, Fla. with defrauding investors by negligently making misstatements and failing to disclose actions it took that jeopardized the tax-exempt status of $12 million of bonds.

The SEC said the city of 11,000 used the bonds to finance a mixed-use retail and public parking structure at tax-exempt rates in two-pooled conduit deals, the first in 2002 and the second in 2006. The bonds were issued by the Florida Municipal Loan Council.

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