Ack-Ack Over Washington

If Jones was indeed an employee, then his firm may be liable under a separate SEC rule, known as Rule G-37. That rule bars securities firms from doing business with any local government if any employee of the firm has donated to the political campaigns of any elected official of that government within the previous two years.

Jones admitted during his confirmation hearing last week that in 1996 he gave political contributions of $250 to County Commissioner Dennis Moss and $500 to then-county mayoral candidate Art Teele. Since those contributions fell within two years of the date that the county commission awarded Douglas James Securities the role of lead underwriter on the $200 million airport bond issue, it would appear that Jones's actions violate Rule G-37. If true, the SEC could punish Douglas James Securities by forbidding the company to take part in upcoming Miami-Dade County bond deals for two years. It could also force the firm to forfeit the $300,000 it made from the airport bond issue and presumably could require Jones to return his cut of $90,000.

Daryl Jones did not return calls requesting comment. SEC officials refused to say anything while their review of the transaction is still under way. Craig James did not return phone calls either. Miami-Dade County finance director Rachel Baum says that while the SEC review is taking place, Douglas James Securities has taken itself out of the county's bond rotation and will not handle any future deals until the matter is resolved.