The SEC had alleged that the city defrauded investors about how it intended to use cash it raised in the bond market between 2008 and 2010. The money was to be used to develop a Holiday Inn hotel, which would generate tax revenue to repay bond holders. After taking huge sums of cash, developer Satish Gabhawala allegedly fled to India, leaving the unfinished hotel to rot.
http://politics.suntimes.com/article/chicago/city-harvey-reaches-deal-sec-over-bond-fiasco/wed-12102014-213pm#bmb=1