The city of South Miami, Florida, defrauded investors by not disclosing problems with the tax-exempt status of two bond deals, U.S. securities regulators said on Wednesday in their second municipal bond fraud enforcement action this month. The U.S. Securities and Exchange Commission said the Florida city had agreed to settle the fraud charges, involving debt sales totaling $12 million, and to hire an independent consultant to oversee its municipal bond disclosures. The SEC has limited authority over the municipal bond market, but in recent months has begun cracking down on issuers about providing bond buyers with accurate and timely information. The city settled without admitting or denying the allegations and did not have to pay a monetary penalty. No individuals were named in the case, as has been the case with all but one of the agency's recent string of rebukes of issuers in the $3.7 trillion U.S. municipal bond market. The SEC attributed the violation to poor communication
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