Call Us:

917-830-6517

Wilson Bradshaw & Cao, LLP | Business Law Firm Irvine CaliforniaWilson Bradshaw & Cao, LLP | Business Law Firm Irvine California
Menu
  • Home
  • Practice Areas
  • Articles & Blogs
  • Our Team
    • Gilbert Bradshaw
    • Yue Cao
    • Christopher Wilson
    • Whitney De Agostini
    • Ashely L. Duran
    • Javiera Salamanca
  • Contact Us
  • en English
    zh-CN Chinese (Simplified)zh-TW Chinese (Traditional)en English
Private Placement Memorandum

SEC Enforcement on the Rise in 2018

CategoriesSEC Enforcement / SEC Subpoena

Gil Bradshaw

February 12, 2019

0 0

Share this post

SEC Enforcement is on the rise in 2018

The Securities and Exchange Commission recently released its annual report for the year 2018, which focuses on its enforcement-related accomplishments.  The Directors said they believe the effectiveness of the program should be measured by assessing the nature, quality, and effects of the Commission’s enforcement actions.  They believe they are deterring future harm by bringing meaningful cases that send clear and important messages to market participants.

Of special interest, is the Commission’s emphasis on accountability of individuals.  There were 54 entities and 94 individuals in stand-alone actions relating to issuer financial reporting and disclosures in the following categories: revenue and expense recognition problems; faulty valuation and impairment decisions; missing or insufficient disclosures; misappropriation through accounting misrepresentations; inadequate internal controls; and misconduct by financial reporting gatekeepers. 

The report emphasizes that in every enforcement action, they seek appropriately tailored remedies that further enforcement goals. In addition to disgorgement and penalties, there are a wide array of potential remedies available. In each case, the Commission seeks those remedies that will be the most meaningful.  Many of the individuals charged in FY 2018 include senior officers at prominent issuers, including CEOs, CFOs, accountants, auditors and other public figures.  Overall monetary remedies obtained by the SEC (penalties and disgorgement) increased by 4 percent from approximately $3.789 billion in FY 2017 to $3.945 billion in FY 2018.2 

 With the rise in cybersecurity issues, the commission is focusing on the timeliness and accuracy of disclosures and the need to maintain strong internal accounting controls.  It has shown its ability and preference to enhance the usual enforcement tools in creative ways to address the current violations.  It’s becoming increasingly difficult to get away with many of the violations that were previously overlooked, now that the Commission is using advanced capabilities in data analytics.  The Commission has also sought to penalize individuals and require them to pay back illegal gains. In FY 2018, the Commission obtained judgments or orders for disgorgement and/or penalties from over 500 individuals, representing an increase of 9% over FY 2017.

Making sure you are in full compliance with all SEC regulations and procedures is the primary focus of the law firm of Wilson, Bradshaw & Cao, LLP.  Your success in going public and staying in good standing with the SEC will bring lasting benefits to your company.  We actively help companies navigate through SEC Enforcement issues. If you receive a subpoena from the SEC we are here to help.

Related Post

JANUARY 15, 2019

SEC Enforcement During the...

SEC Enforcement During the Government Shutdown. Is the SEC enforcing its laws right now?...

00

DECEMBER 24, 2018

Suspended Trading in...

The Securities and Exchange Commission suspended trading in the securities of...

00

DECEMBER 3, 2018

What is an Exemption from...

What is an “exemption from registration?” Regulation D’s Rule 504 and Rule 506...

00

NOVEMBER 30, 2018

Is the Securities and...

Is the Securities and Exchange Commission Helping or Harming Cryptocurrency...

00

NOVEMBER 30, 2018

SEC Charges Two Celebrities...

SEC Charges Two Celebrities with Unlawfully Touting Initial Coin Offerings On November...

00

NOVEMBER 28, 2018

SEC Charges Promoter with...

SEC Charges Promoter with Penny Stock Market Manipulation Scheme The Securities and...

00

Leave a Comments Cancel Reply

Please active sidebar widget or disable it from theme option.

© 2018 Wilson Bradshaw & Cao, LLP -- Securities, M&A, and Corporate Attorneys, All Rights Reserved.