Detroit Suburb Charged With Fraud In Municipal-bond Scheme

A Detroit suburb, its former mayor and city administrator have been charged with fraud connected to a municipal-bond offering for a movie studio project. The Securities and Exchange Commission is charging the city of Allen Park, Mich., saying its officials misled investors about the scope of the project during the sale of $31 million in municipal bonds, as well as about the city's overall financial condition. The original plan detailed a $146 million facility with eight sound stages but the project had deteriorated into building a vocational school without informing investors. The city's former mayor, David Burtka, agreed to pay a $10,000 penalty.