SEC Settlements with Individual Securities Law Violators Increase

The Securities and Exchange Commission is taking a hard line against individuals accused of violating federal securities laws, and it’s beginning to show. From law firm Orrick:

“NERA Economic Consulting Group’s June 27, 2012 report shows a 20% increase in SEC settlements with individual defendants for the first half of fiscal 2012. This spike is consistent with the SEC’s stated intent to hold more individuals accountable for violations of federal securities laws.

In the first half of 2012, the SEC settled 286 cases with individuals, for a projected annualized 572 settlements. This reflects the highest number of SEC settlements with individual defendants since 2005, most of them related to alleged insider trading, Ponzi-schemes, and public company restatements. The NERA report projects 120 insider trading related settlements in fiscal year 2012, nearly double the 63 settlements in 2011. The report also anticipates 76 Ponzi-scheme related settlements in 2012, as compared to 55 in 2011, and an increase from 60 to 78 restatement related settlements.”

Read the update, Let’s Make a Deal: SEC Settlements with Individuals Spike in 2012 – Orrick 

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Also read: Senators Unveil Bill to Increase SEC Civil Penalties; House Members Propose Competing Bills to Enhance the SEC’s Investment Adviser Oversight - BuckleySandler LLP