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SEC Lax In Pursuing Naked Short-Sellers: OIG Report

Law360 (March 19, 2009, 12:00 AM EDT) -- Although the U.S. Securities and Exchange Commission received 5,000 e-mail complaints about naked short-selling over an 18-month period, the agency did not bring a single enforcement action, according to a report released Wednesday by the agency's inspector general.

Based on an audit of the SEC's Enforcement Division, Inspector General H. David Kotz's report concludes that a lack of uniform procedures for handling tips contributed to only 123, or 2.5 percent, of the approximately 5,000 complaints being forwarded for investigation between Jan. 1, 2007, and June 30,...
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