FOR IMMEDIATE RELEASE                      99-119

           SEC Brings Municipal Fraud Charges Against
        the City of Miami and Two Former Senior Officials

     Miami, FL, September 22, 1999 -- The Securities and Exchange
Commission today instituted administrative proceedings against
the City of Miami (the "City"), Cesar Odio, its former City
Manager, and Manohar Surana, its former Director of Finance and
Assistant City Manager, (collectively, the "Respondents") to
determine whether a cease-and-desist order should be imposed
against them for alleged municial securities fraud.

     The SEC alleges in its administrative order ("Order") that
the City, Odio, and Surana committed fraud in violation of the
provisions of the Securities Act of 1933 and Securities Exchange
Act of 1934.  The violations, the SEC says, occurred in the offer
and sale of approximately $126 million in municipal bonds issued
to the public by the City in three separate offerings between
June and December 1995 (the "offerings").  Specifically, the
three bond offerings at issue are the:

1. $22.5 million General Obligation Bonds, Series 1995 (Sanitary
   Sewer System Projects) offered and sold in June 1995 ("Sewer
   Bond Offering");
2. $22 million Special Obligation Non-Ad Valorem Revenue Bonds,
   Series 1995 (Administration Buildings Acquisition Project)
   offered and sold in August 1995 ("Admin. Building Bond
   Offering"); and
3. $72 million Special Obligation Non-Ad Valorem Revenue Bonds,
   Series 1995 (Taxable Pension and Taxable Compensated Absences)
   offered and sold in December 1995 ("Pension Bond Offering").

     The SEC's Order alleges that the Official Statements
distributed to investors in the offerings failed to disclose the
City's true financial condition at the time of the offerings.
Specifically, the SEC alleges that the Official Statements failed
to disclose a substantial decline in the City's cash flow
position since the close of fiscal year 1994 and that serious
consequences could result, including, the possibility that the
City would be unable to meet its operating expenses and debt
service in fiscal year 1995.  The SEC also alleges that the
Official Statements failed to disclose that "Operation Right-
Size," a program designed to significantly reduce the City's
expenditures, was insufficient to remedy its immediate economic
problems.  The SEC further alleges that the Pension Bond Official
Statement failed to disclose that those bonds were being issued
in order to address the City's "immediate cash flow
requirements."  In addition, the SEC alleges that the City and
Odio in all three Official Statements, and Surana in the Pension
Bond Official Statement, misrepresented that no material adverse
change in the City's finances had occurred since the close of
fiscal year 1994.

     The SEC's Order also alleges that the City and Odio
committed fraud in violation of the federal securities laws when
they disseminated, on or about September 1995, the City's
Comprehensive Annual Financial Report for fiscal year 1994 (the
"CAFR") to broad segments of the investment community, including
investors in its previously issued debt.  Specifically, the SEC
alleges that the CAFR, like the Official Statements, failed to
disclose the City's deteriorating financial condition.

     Finally, the SEC's Order alleges that the Official
Statements for the Sewer Bond and Admin. Building Bond Offerings
included general fund budget figures, which falsely represented
that the City had achieved a balance budget for fiscal year 1995.
In particular, the SEC alleges that the City, Odio and Surana
balanced the City's fiscal year 1995 budget by including
approximately $9 million in revenues from a federal block grant,
which they knew or should have known would not be received by the
City in fiscal year 1995.  The SEC alleges therefore, that they
knew that the City did not have a balanced budget for fiscal year
1995.

     A hearing will be scheduled to determine whether a cease-and-
desist order should be entered against the Respondents.  The SEC
is not seeking monetary penalties or other financial relief
against the individual Respondents or the City.  The SEC is
continuing its investigation into this matter.

For additional information contact:

John C. Mattimore
Assistant Regional Director
(305) 982-6357

Chedly C. Dumornay
Branch Chief
(305) 982-6377

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