May 24, 2022

Volume XII, Number 144

Advertisement
Advertisement

May 23, 2022

Subscribe to Latest Legal News and Analysis
Advertisement

SEC Enforcement Report Touts Volume of New Actions and Increase in Penalties

In its annual enforcement report, the SEC called attention to the filing of over 450 new enforcement actions in fiscal year 2021 and the wide variety of actions taken. The new actions filed brought the total number of actions to 697, representing an increase of seven percent over new actions brought in fiscal year 2020, but a decrease in overall actions compared with the six prior years. The report also found a 33% decrease in disgorgements compared with the prior fiscal year, but a 33% increase in fines.

As outlined in the report, enforcement actions were brought in new and emerging areas of securities law, including against, among others: (i) digital asset exchanges and lending platforms; (ii) a special purpose acquisition company and its merger target; and (iii) decentralized finance transaction counterparties. Whistleblower awards also grew to an unprecedented level in 2021 (see related coverage).

SEC Enforcement Director Gurbir S. Grewal said that the year included many "critically important" and "first-of-their-kind" actions. SEC Chair Gary Gensler also applauded the results as evidence of the SEC's willingness to pursue misconduct in the financial system, regardless of the parties involved or the complexity of the field, saying:

"The SEC's Enforcement Division is the cop on the beat for America's securities laws. . . . As these results show, we go after misconduct wherever we find it in the financial system, holding individuals and companies accountable, without fear or favor, across the $100-plus trillion capital markets we oversee."

 

© Copyright 2022 Cadwalader, Wickersham & Taft LLPNational Law Review, Volume XI, Number 323
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Philip S. Khinda Attorney Securities Law Cadwalader Law Firm Washington DC
Partner

Philip Khinda is one of the nation's leading securities lawyers, litigators, and advisers to public companies, corporate boards, special committees, and financial institutions dealing with corporate crises, shareholder and derivative litigation, and government and internal investigations. 

Phil’s leadership of the CalPERS Special Review, its fee recovery of more than $200 million for the nation's largest state pension fund, and its public report on pay-to-play and public corruption issues are notable representative efforts. He has also...

202-862-2262
Advertisement
Advertisement
Advertisement