{"id":5654,"date":"2014-06-25T00:00:00","date_gmt":"2014-06-25T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/06\/sec_stops_fraudulent_bond_offe"},"modified":"2022-05-06T11:44:56","modified_gmt":"2022-05-06T16:44:56","slug":"sec-stops-fraudulent-bond-offe","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-stops-fraudulent-bond-offe\/","title":{"rendered":"SEC Stops Fraudulent Bond Offering by Chicago Suburb"},"content":{"rendered":"

The SEC has gotten an emergency court order against the city of Harvey. The order puts an end to a bond offering <\/a>that the Chicago, Illinois suburb was promoting. Also named in the order is Joseph T. Letke, the city\u2019s controller.<\/p>\n

The regulator contends that Harvey and Letke allegedly took part in a securities scam to use proceeds from the bonds for undisclosed, improper uses. The bond offerings were supposed to pay for a new Holiday Inn. Instead, officials purportedly took at least $1.7M of the proceeds to cover operational costs for the city. With the temporary order, Harvey is not allowed to sell or offer any bonds through the middle of July.<\/p>\n

Per the SEC complaint, Harvey\u2019s bond offerings from \u201908-\u201911 were limited obligations bonds. The bond offerings had to be used for their intended purpose. Also the money that was raised needed to go toward the construction of the hotel. This is because funds that were supposed to pay back the bonds came from tax revenues that would be impacted by the progress and funding of the project. News reports reveal that the proposed Holiday Inn hotel and conference center have yet to be finished, with the hotel\u2019s facade appearing gutted in certain places.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The SEC has gotten an emergency court order against the city of Harvey. The order puts an end to a bond offering that the Chicago, Illinois suburb was promoting. Also named in the order is Joseph T. Letke, the city\u2019s controller. The regulator contends that Harvey and Letke allegedly took part in a securities scam […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3922],"tags":[],"class_list":["post-5654","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds"],"yoast_head":"\nSEC Stops Fraudulent Bond Offering by Chicago Suburb — Investor Lawyers Blog — June 25, 2014<\/title>\n<meta name=\"description\" content=\"The SEC has gotten an emergency court order against the city of Harvey. 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