City of Miami attorney Victoria Mendez said in a statement to Reuters: "While we respect the jury and the judicial process, we are disappointed in the jury's verdict. We are reviewing the record to determine how to proceed at this point."
Amie Riggle Berlin, senior trial counsel for the SEC, told the court that the regulator would present its request for injunctive relief and monetary penalties within the next two weeks.
The lawsuit alleged both the city and Boudreaux failed to tell credit rating agencies and investors they had churned money through various city accounts in an attempt to keep its general fund above a minimum, city-mandated, $100 million mark.
According to the SEC's complaint, in 2007 and 2008 Boudreaux wrongly told city officials that certain amounts of money he planned to transfer into the city's general fund were unused, when in fact they were being redirected from the city's capital projects.
Boudreaux was fired in 2010.
"That the SEC has prevailed in this case is another reminder that the Enforcement Division in recent years has dramatically increased focus on municipal offerings, an area that will continue to attract regulatory scrutiny for at least the near term," said Jonathan Shapiro, a partner at Baker Botts in San Francisco, who was not involved in the case.
(Additional reporting by Jonathan Stempel and Dena Aubin in New York.)
This article was provided by Reuters.