SEC Stops Muni Bond Offer in Harvey, Ill, Seen as Fraudulent

``The Chicago suburb of Harvey and its comptroller, Joseph Letke, were the targets of a temporary restraining order requested by the SEC as the agency sought to stop a bond offering that the city has been marketing to potential investors, alleging the city has been misusing bond proceeds... Harvey officials quietly diverted at least $1.7 million of bond proceeds from these offerings to pay the city's operational costs such as its payroll, and Letke received approximately $269,000 in undisclosed payments derived from bond proceeds.''