Harvey settles SEC lawsuit over bond offerings

The city of Harvey has agreed to settle a lawsuit in which the Securities and Exchange Commission accused the South suburb of fraudulently diverting funds from bond sales.

The SEC filed a complaint against the city and its comptroller in June claiming the city improperly used funds for years. In one case, the SEC said money that was supposed to fund construction of a hotel instead went toward payroll.

U.S. District Court Judge Amy St. Eve gave final approval to a settlement Wednesday.

In it, the city admits no wrongdoing. Harvey officials agree to refrain from fraudulent bond sales and to retain an independent financial consultant for at least three years.

Harvey spokesman Sean Howard says the city is confident it can "move forward on the path to future success."