This week the U.S. Court of Appeals for the Second Circuit “lowered the bar” for the U.S. Securities and Exchange Commission to successfully bring enforcement actions against “aiders and abettors” of securities fraud.
Public companies being investigated by the SEC often face difficult decisions about whether, when, and to what extent they should disclose the government inquiry.
In December 2011, we reported that U.S. Securities and Exchange Commission Chairman Mary Schapiro wrote to Senator Jack Reed, who chairs the Senate Subcommittee that oversees the SEC, formally requesting legislative changes that would increase existing limits on civil monetary penalties available in SEC actions, and allow the SEC to prosecute enforcement matters in administrative proceedings.
Earlier this year, we reported a significant change in policy at the Securities and Exchange Commission: companies that admit to criminal charges in securities fraud matters may no longer settle SEC enforcement matters without admitting guilt of the same conduct alleged in the criminal proceedings.
The United States Sentencing Commission recently unveiled a number of key amendments to the Federal Sentencing Guidelines regarding securities fraud, insider trading, and financial institution fraud.
The Securities and Exchange Commission announced on Friday, January 6th a significant new policy: companies that admit to criminal charges in securities fraud matters will no longer be able to settle SEC charges without admitting guilt in enforcement proceedings stemming from the same conduct.