The SEC recently fined and has also petitioned for multi-million US dollar sanctions in cases involving negligence in supervision.

On 17 July 2013, the SEC obtained USD 13.9 million in penalties from Rajat Gupta, the former manager of Goldman Sachs, in connection with market abuse and insider trading. In addition to the penalty, the SEC order bars Gupta from ever acting as an officer or director of a public company and from associating with any broker, dealer or investment adviser.

The SEC also filed criminal charges against SAC Capital CEO Stephen Cohen. Cohen allegedly failed to supervise two senior employees who engaged in insider trading under his supervision.

Like the Gupta case, the SEC intends to bar Cohen from ever working in the financial sector.

For more information, please read our RCE Newsletters of April, July and October 2012.