SEC Says Egan-Jones Lied About Ratings Experience

Law360, New York (April 24, 2012, 8:41 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday alleged credit rating firm Egan-Jones Ratings Co. lied about its experience rating asset-backed securities and government bonds in its 2008 application to register as a nationally recognized statistical rating organization.

In an order initiating an administrative proceeding against Haverford, Pa.-based EJR and its owner and president Sean Egan, the SEC said the firm claimed in its application that it had 150 outstanding asset-backed securities issuer ratings and 50 outstanding government issuer ratings.

In fact, the firm had never...
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