In the latest installment of The Bond Buyers Muni Minute we examine the next steps that the Securities and Exchange Commission is taking this week against Miami and the citys former budget director Michael Boudreaux. A court-ordered relief filing will detail the penalties the commission is seeking. While there is some uncertainty over what other penalties will be imposed, Miami has agreed to pay $1 million to the SEC, the largest civil penalty ever against a municipality.
WEITZMAN: The Securities and Exchange Commission is expected to file documents detailing the relief it will seek in a Federal Court by Friday and its case against Miami and the city's former budget director. The SECs court order relief filing deadline files a finding by the Federal jury in Miami on September 14th, that the defendants were guilty of playing a show game to hide the city's deteriorating financial condition from bondholders. The SECs filing will detail the panoplies the commission is seeking against the city and former budget director. While the specific penalties have not been divulged, they could include stipulations like requiring the city to higher special personnel that handles certain aspects of financing or have special training to prevent future violations of security laws. Miami City Commissioners have already voted to settle the charges by paying a civil panoply of $1 million, the largest ever imposed against a municipality. As a result of the first of its kind jury verdict. The former Budget Director has not yet reached a settlement with the SEC and his attorney has said he intends to appeal the verdict. I'm Aaron Weitzman and this has been your muni minute.