CFO
Menu
  • Accounting & Tax
  • Banking & Capital Markets
  • Growth Companies
  • Human Capital & Careers
  • Risk & Compliance
  • Strategy
  • Technology
  • Sign InSign Up
CFO
  • Conferences
  • Webcasts
  • Research
  • White Papers
  • Jobs
  • Training
  • Newsletters
  • Magazine
CFO
The Ongoing Evolution of FP&A
Global Survey Identifies 7 Key Insights
How to Spot a Fraudulent M&A Target
Here are some of the red flags of fraud that CFOs…
Does Diversity Pay Off?
CFOs Look to Quantify Inclusion Initiatives
  • Accounting & Tax
  • Banking & Capital Markets
  • Risk & Compliance
  • Human Capital & Careers
  • Growth Companies
  • Strategy
  • Technology
Regulation

SEC Hit Record Enforcement Highs in 2016

The SEC broke records for single-year enforcement actions filed and total dollars gained from forfeitures.

Sean Allocca
October 13, 2016 | CFO.com | US
share
Tweet
Print

Email this article

It’s been a busy year for the SEC —  in fact, one of the busiest on record. The Securities and Exchange Commission announced its enforcement results for fiscal year 2016, posting record numbers for actions filed and money forfeited.

The SEC filed 868 enforcement actions, in the year ending Sept. 30, exposing financial reporting-related misconduct and obtaining judgments that totaled more than $4 billion in disgorgement and penalties.

Recommended Stories:
  • China’s ZTE Banned From Using U.S. Parts
  • Fed Proposes Simpler Capital Rules for Banks
  • Complying for Security’s Sake

The new single-year high for enforcement actions included 160 involving investment advisers or investment companies and a record 98 stand-alone cases involving investment advisors or investment companies.

“Over the last three years, we have changed the way we do business on the enforcement front by using new data analytics to uncover fraud, enhancing our ability to litigate tough cases, and expanding the playbook bringing novel and significant actions to better protect investors and our markets,” said SEC chair Mary Jo White.

One of the most noteworthy cases of the year was the $415 million suit against Merrill Lynch alleging the company violated the SEC’s Customer Protection Rule. Between 2009 and 2012, the firm freed up billions of dollars each week to fund its own trading activities. Merrill Lynch admitted to misusing customer cash and putting customers’ securities at risk to generate profits.

ENF-Chart-Results

Image courtesy of the Securities & Exchange Commission

In addition to record settlements, the agency also distributed $57 million to whistleblowers, a single-year high, and filed a record 21 actions under the Foreign Corrupt Practices Act (FCPA).

Other actions included the J.P. Morgan case that resulted in an admission of wrongdoing and a $267 million settlement for failing to disclose conflicts of interest and a violation of the Foreign Corrupt Practices Act filed against telecommunications provider VimpelCom Ltd. that was settled, along with the Justice Department and Dutch regulators, for more than $795 million.

Post navigation

← Alcoa Agrees to Extra Pension Contributions
Cybersecurity Insurance Becoming a Must-Have →

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

Popular Articles

  1. 10 Habits of Highly Effective CFOs
  2. No Mystery How to Restrain Health Costs
  3. Zero-based Budgeting Is Surging
  4. Pay Ratio Disclosures Mislead Investors
  5. No More Tax Deductions for Bad Actions
Advertisement
 

Topics

  • Accounting & Tax
  • Banking & Capital Markets
  • Human Capital & Careers
  • Growth Companies
  • Risk & Compliance
  • Strategy
  • Technology

Media

  • Videos
  • Whitepapers
  • Research
  • Magazine

Events

  • Conferences
  • Argyle Events
  • Webcasts

Services

  • Reprints
  • Back Issues
  • Mobile
  • Widgets
  • RSS

About CFO

  • About CFO
  • Editorial Staff
  • Press
  • Advertise
  • Contact Us

Want the Magazine?

Relax and unplug with our award-winning coverage.

Subscribe Now
Follow Us