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SEC Charges Mayor as a “Control Person” in City’s Fraudulent Municipal Offering

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November 13, 2014
Client Alert

On November 6, 2014, the Securities and Exchange Commission announced that fraud charges had been issued against the city of Allen Park, Michigan, and two former city leaders. An SEC investigation into the city’s sale of $31 million in general obligation bonds, sold to support a movie studio project, found that the offering documents provided to investors contained false and misleading statements about the scope and viability of the proposed project and about the overall financial condition of Allen Park at the time the bonds were offered to investors.

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