Egan-Jones Settles With SEC Over Credit Rating Application

Law360, New York (January 22, 2013, 3:10 PM EST) -- Credit rating firm Egan-Jones Ratings Co. on Tuesday agreed to temporarily stop rating certain securities issuers to resolve allegations by the U.S. Securities and Exchange Commission that it lied about its qualifications to become a nationally recognized statistical rating organization.

Egan-Jones and its owner and president, Sean Egan, agreed not to rate asset-backed and government securities issuers for 1 1/2 years. The settlement ends the SEC’s April 24 administrative proceeding claiming Egan-Jones lied about its experience rating those securities in its successful 2008 application to register...
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