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Statement on Jury’s Verdict in Trial of the City of Miami and Michael Boudreaux

Andrew Ceresney
Director, Division of Enforcement

Sept. 14, 2016

"We are very pleased by today’s jury verdict holding the City of Miami, a recidivist violator of the federal securities laws, and its former Budget Director (Michael Boudreaux) liable for multiple counts of antifraud violations of the federal securities laws.  After a two and one-half week trial, the jury took less than a day to decide that the City and Boudreaux had committed securities fraud in connection with their disclosures concerning the deteriorating financial condition of the City during 2007 and 2008 and in three separate offerings of municipal securities in 2009.  Based on the jury’s findings, the SEC anticipates that the Federal District Court Judge will also enter a finding that the City of Miami violated a prior SEC order, imposed after a fully litigated administrative trial, prohibiting it from engaging in fraudulent conduct.  This was the first federal jury trial by the SEC against a municipality or one of  its officers for violations of the federal securities laws.  We will continue to hold municipalities and their officers accountable, including through trials, if they engage in financial fraud or other conduct that violates the federal securities laws."

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More information:

The SEC filed its civil complaint on July 19, 2013: https://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539727618