SEC Corporate Penalties: The Changing Tide

Law360, New York (April 6, 2009, 12:00 AM EDT) -- On March 18, 2009, the SEC’s Commissioner Luis Aguilar announced that he supported a re-evaluation of the U.S. Securities and Exchange Commission’s Statement on Corporate Penalties, which has been guiding the agency’s decisions for the last three years.

In Commissioner Aguilar’s view, the Penalty Statement is seriously flawed and does not focus sufficiently on deterrence and punishment. Corporations and their counsel should take notice.

After all, in early January, Commissioner Aguilar publicly stated that the SEC’s Penalty Pre-Authorization Program should be scrapped and that the approval...
To view the full article, register now.