Eric J. Kellogg, mayor of Harvey, Illinois, will pay $10,000 and has agreed to never participate in a municipal bond offering again, in order to settle SEC fraud charges. The SEC alleged that Kellogg was connected to a series of fraudulent bond offerings by the city. Investors were told that their money would be used to develop and construct a Holiday Inn hotel in Harvey, but instead city officials diverted at least $1.7 million in bond proceeds to fund the city’s payroll and other operational costs. SEC
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