A recent action by the Securities and Exchange Commission (SEC)
against the city of Harvey, IL, a poor city of 30,000 just south of
Chicago, deals with a different sort of fiduciary duty than the
usual government ethics case. In a complaint dated June 24, 2014
(attached; see below), the SEC alleges that the city's comptroller
acted as financial adviser in three bond issues for a hotel development, diverted some of the funds to himself, and also diverted
funds to the city's general fund. The...