Watchdog Slams SEC Over Doc Destruction

Law360, New York (November 1, 2011, 7:03 PM EDT) -- The U.S. Securities and Exchange Commission should not have destroyed files related to preliminary investigations into securities and financial fraud, but the agency's actions didn't appear to hinder any investigations, according to a SEC inspector general report released Tuesday.

Inspector General H. David Kotz said the SEC destroyed documents related to closed preliminary investigations called matters under inquiry, or MUIs, that should have been preserved as federal records.

Kotz also said the agency misled the U.S. National Archives and Records Administration when it inquired about the...
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