SEC Sets a Record: All-Time High Enforcement Actions

The SEC brought a record number of enforcement actions over the past year, setting all-time highs for cases brought against investment advisers and investment companies, the agency announced this week.

In the fiscal year that ended Sept. 30, the SEC filed 868 enforcement actions against various players in the financial-services sector, including 258 cases against investment advisers or companies. That mark is up from 807 enforcement actions in fiscal 2015, and 755 cases brought in 2014.

In total, the commission won judgments against firms and individuals totaling more than $4 billion in penalties and disgorgements.

According to the press release, The SEC’s most significant enforcement actions in fiscal year 2016 include:

-Insider trading and beneficial ownership reporting-related charges against Leon G. Cooperman and his firm Omega Advisors.

-Insider trading charges against William “Billy” Walters and his source Thomas C. Davis, a former Dean Foods Company board member.

-A $415 million enforcement action against Merrill Lynch for violating customer protection rules by misusing customer cash and putting customer securities at risk.  The firm also admitted wrongdoing.

-A $267 million enforcement action against J.P. Morgan wealth management subsidiaries, for failing to disclose conflicts of interest to clients.  The firms also admitted wrongdoing.

-FCPA cases against the Och-Ziff hedge fund and its CEO and CFO and against Vimpel Com Ltd. in which the companies paid hundreds of millions of dollars to settle the charges. For more information see Och-Ziff Hedge Fund Settles Bribery Charge for $200 million

The foregoing information, which is all publicly available, is being provided by The White Law Group.   The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.  For more information on the firm and it’s representation of investors, visit www.whitesecuritieslaw.com.

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