SEC Fines Rating Agency Lace For Misstatements

Law360, New York (September 7, 2010, 1:55 PM EDT) -- The U.S. Securities and Exchange Commission has censured and fined subscription-based credit rating agency Lace Financial Corp. and its founder Barron Putnam for alleged misstatements made in a federal rating agency registration application and conflict-of-interest waiver request.

The SEC issued an order Thursday instituting administrative and cease-and-desist proceedings against nationally recognized statistical rating agency Lace and Putnam, who founded the rating agency in 1984 and was its majority owner during the period cited in the order.

The administrative order effectively resolves the SEC's proceedings against Putnam...
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