{"id":5710,"date":"2014-11-06T00:00:00","date_gmt":"2014-11-06T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/11\/detroit_suburb_charged_with_mu"},"modified":"2022-05-06T11:58:57","modified_gmt":"2022-05-06T16:58:57","slug":"detroit-suburb-charged-with-mu","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/detroit-suburb-charged-with-mu\/","title":{"rendered":"Detroit Suburb Charged with Muni Bond Fraud"},"content":{"rendered":"\n

The U.S. Securities and Exchange Commission is charging the Detroit, Michigan suburb of Allen Park with fraud involving a municipal bond sale that was supposed to finance a movie studio project. Also charged with municipal bond fraud are ex-city Mayor Gary Burtka and former City Administrator Eric Waidelich. All three settled without denying or admitting to the charges.<\/p>\n

The Commission contends that Allen Park took advantage of a 2008 Michigan law giving substantial tax credits to film studios that engage in business in the state. The $147 million movie studio, called Unity Studios, was supposed to give jobs to thousands. The plan, however, failed when the city was unable to keep up its end of the partnership.<\/p>\n

Because of the project, Allen Park ended up with a $2 million budget deficit. The regulator says that the studio became a \u201cprimary factor\u201d in the failing economic health of the city. A vocational school was constructed on the site instead. <\/p>\n

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

The U.S. Securities and Exchange Commission is charging the Detroit, Michigan suburb of Allen Park with fraud involving a municipal bond sale that was supposed to finance a movie studio project. Also charged with municipal bond fraud are ex-city Mayor Gary Burtka and former City Administrator Eric Waidelich. All three settled without denying or admitting […]<\/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-5710","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds"],"yoast_head":"\nDetroit Suburb Charged with Muni Bond Fraud — Investor Lawyers Blog — November 6, 2014<\/title>\n<meta name=\"description\" content=\"The U.S. Securities and Exchange Commission is charging the Detroit, Michigan suburb of Allen Park with fraud involving a municipal bond sale that was — November 6, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/detroit-suburb-charged-with-mu\/\" \/>\n<meta name=\"twitter:card\" 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