SEC v. City of Harvey; and City of Harvey, Illinois, No. LR-25009, Northern District of Illinois (Jan. 14, 2021) — Press Release
raw: City of Harvey, et al.
City of Harvey, et al., No. LR-25009 (Jan. 14, 2021)
summary
The City of Harvey, Illinois, diverted $1.7 million in municipal bond proceeds meant for a hotel redevelopment project to general operations, leading to a consent judgment and eventual court order to implement internal control reforms.
paragraph
The City of Harvey, Illinois, was sued by the SEC in 2014 for diverting at least $1.7 million in municipal bond proceeds to general operations, including payroll. The City consented to a judgment in December 2014, agreeing to hire an independent consultant and implement its recommendations without admitting wrongdoing. The City's failure to implement these recommendations led to a court order on January 13, 2021, to comply with the consent judgment.
narrative
The SEC alleged that the City of Harvey, Illinois, diverted at least $1.7 million in municipal bond proceeds intended for a hotel redevelopment project to cover general operating expenses, such as payroll, while under severe financial distress. The City and its former Comptroller were sued in June 2014. In December 2014, the City entered a consent judgment, agreeing to hire an independent consultant to make recommendations for strengthening internal controls and to implement those recommendations without admitting or denying the allegations. Although the City hired a consultant and received recommendations, it failed to implement them by 2020. The SEC moved to enforce the consent judgment, and on January 13, 2021, a Northern District of Illinois judge found the City in breach and ordered it to comply. The case was handled by the SEC's Public Finance Abuse Unit. The City was required to fulfill its obligations under the consent judgment by implementing the consultant's recommendations.
Classified public-corruption(confidence 95%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
Securities and Exchange CommissionCity of Harvey, IllinoisCity of Harvey
Keywords
citycity harveyconsultant's recommendationscity's internalinternal controlsindependent consultantharveyconsentrecommendationsillinoisindependentcity'sharvey illinoisillinois federalconsent litigation
Extracted insights
Dollar amounts 1
- $1.70M $1.7 million $1M–$10M
Entities 3
- person consent judgment
- agency Securities and Exchange Commission
- unknown city of harvey
Triples 45
- SEC sued City of Harvey and its then-Comptroller
- City of Harvey diverted at least $1.7 million in municipal funds
- Illinois federal court ordered City of Harvey to comply with consent judgment and implement consultant's recommendations
- SEC sued City of Harvey and its then-Comptroller
- City of Harvey diverted at least $1.7 million in municipal funds
- Illinois federal court ordered City of Harvey to comply with a consent judgment
- SEC sued City of Harvey and its then-Comptroller
- City of Harvey diverted at least $1.7 million in municipal funds
- Illinois federal court ordered City of Harvey to comply with consent judgment and implement consultant's recommendations
- SEC sued City of Harvey and its then-Comptroller
- City of Harvey diverted at least $1.7 million in municipal funds
- Illinois federal court ordered City of Harvey to comply with a consent judgment
- Securities and Exchange Commission sued City of Harvey and its then-Comptroller
- City of Harvey diverted at least $1.7 million in municipal funds
- Illinois federal court ordered City of Harvey to comply with a consent judgment
- SEC sued City of Harvey and its then-Comptroller
- City of Harvey diverted at least $1.7 million in municipal funds
- Illinois federal court ordered City of Harvey to comply with a consent judgment
- Illinois Federal Court Orders City of Harvey
- City of Harvey to Comply with Consent Judgment
- SEC sued City of Harvey
- SEC sued then-Comptroller
- SEC alleged City diverted at least $1.7 million
- SEC sued City of Harvey and its then-Comptroller
- City of Harvey diverted at least $1.7 million in municipal funds
- Illinois federal court ordered City of Harvey to comply with a consent judgment
- Securities and Exchange Commission sued City of Harvey, et al.
- City of Harvey, Illinois diverted at least $1.7 million in muni
- Illinois federal court ordered City of Harvey to comply with consent judgment
- consent judgment required implementation of consultant's recommendations
- City of Harvey failed to comply with consent judgment
- Illinois Federal Court orders the City of Harvey, Illinois to comply with a consent judgment
- Illinois federal court ordered the City of Harvey, Illinois to fulfill its obligations under a consent judgment
- SEC sued the City of Harvey and its then-Comptroller
- SEC alleged the City diverted at least $1.7 million in municipal funds
- Litigation Release No. 25009 dated January 14, 2021
- Securities and Exchange Commission v. City of Harvey, et al. filed June 24, 2014
- Illinois Federal Court orders City of Harvey, Illinois
- City of Harvey, Illinois must comply with consent judgment
- City of Harvey, Illinois must implement consultant's recommendations
- SEC sued City of Harvey and its then-Comptroller
- SEC alleged City diverted at least $1.7 million in muni
- Illinois federal court ordered the City of Harvey, Illinois (City) to fulfill its obligations under a consent judgment
- the SEC sued the City and its then-Comptroller
- the SEC alleged the City diverted at least $1.7 million in muni
Extracted body text (1,819c)
Illinois Federal Court Orders the City of Harvey, IIIinois, to Comply with a Consent Judgment Litigation Release No. 25009 / January 14, 2021 Securities and Exchange Commission v. City of Harvey, et al., No. 14-cv-4744 (N.D. Ill. filed June 24, 2014) An Illinois federal court has ordered the City of Harvey, Illinois (City) to fulfill its obligations under a consent judgment to implement a consultant's recommendations for strengthening the City's internal controls. The SEC sued the City and its then-Comptroller in June 2014. The SEC alleged that the City diverted at least $1.7 million in municipal bond proceeds, purportedly to be used for a hotel redevelopment project. The complaint alleged that while under severe financial distress, the City improperly used municipal bond proceeds for the City's general operations, including payroll. In December 2014, without admitting or denying the allegations, the City consented to a judgment requiring, among other things, that the City hire an independent consultant to make recommendations for strengthening the City's internal controls and that the City implement the independent consultant's recommendations. On October 28, 2020, the SEC filed a motion to enforce the consent judgment. According to the SEC's motion, the City hired an independent consultant, and the independent consultant made recommendations to strengthen the City's internal controls, but the City failed to implement the independent consultant's recommendations. On January 13, 2021, the United States District Court for the Northern District of Illinois found that the City violated the consent judgment and granted the SEC's motion to enforce the consent judgment. The litigation is being handled by Eric M. Phillips and Public Finance Abuse Unit members Eric A. Celauro and Sally J. Hewitt.
OCR text (1,819c · html-text · 99% conf)
Illinois Federal Court Orders the City of Harvey, IIIinois, to Comply with a Consent Judgment Litigation Release No. 25009 / January 14, 2021 Securities and Exchange Commission v. City of Harvey, et al., No. 14-cv-4744 (N.D. Ill. filed June 24, 2014) An Illinois federal court has ordered the City of Harvey, Illinois (City) to fulfill its obligations under a consent judgment to implement a consultant's recommendations for strengthening the City's internal controls. The SEC sued the City and its then-Comptroller in June 2014. The SEC alleged that the City diverted at least $1.7 million in municipal bond proceeds, purportedly to be used for a hotel redevelopment project. The complaint alleged that while under severe financial distress, the City improperly used municipal bond proceeds for the City's general operations, including payroll. In December 2014, without admitting or denying the allegations, the City consented to a judgment requiring, among other things, that the City hire an independent consultant to make recommendations for strengthening the City's internal controls and that the City implement the independent consultant's recommendations. On October 28, 2020, the SEC filed a motion to enforce the consent judgment. According to the SEC's motion, the City hired an independent consultant, and the independent consultant made recommendations to strengthen the City's internal controls, but the City failed to implement the independent consultant's recommendations. On January 13, 2021, the United States District Court for the Northern District of Illinois found that the City violated the consent judgment and granted the SEC's motion to enforce the consent judgment. The litigation is being handled by Eric M. Phillips and Public Finance Abuse Unit members Eric A. Celauro and Sally J. Hewitt.