
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm Insights
Author: Dan Brecher
Date: October 29, 2013
Counsel
212-286-0747 dbrecher@sh-law.comIn recent remarks before the Council of Institutional Investors, Securities and Exchange Commission (SEC) Chair Mary Jo White offered additional details about the agency’s new settlement policy. The speech, entitled “Deploying the Full Enforcement Arsenal,” also detailed the SEC’s priorities in creating a tougher enforcement program.
To start, White highlighted the following as key enforcement priorities:
White also highlighted that the SEC will be “aggressive and creative in the way we use the enforcement tools at our disposal.” As she explained, this means the agency will “neither shrink from bringing the tough cases, nor fail to bring smaller ones.” White further added that the Enforcement Division will consider all the legal avenues available, including bringing negligence cases when there is not enough evidence to prove intentional wrongdoing.
White also shed further light on the SEC’s revised settlement policy, which will more frequently require defendants to admit wrongdoing. While White acknowledged that settling cases on a no-admit-no deny basis still makes sense in a large majority of cases, she also reaffirmed that “more may be required for a resolution to be, and to be viewed as, a sufficient punishment and strong deterrent message.” According to White, cases potentially requiring admissions include:
With regard to penalties, White noted that the agency plans to incorporate more forward-looking mandatory undertakings, such as requiring companies to implement new policies, procedures and compliance testing. As she noted, these sanctions are intended to prevent future wrongs rather than simply punish prior conduct.
The recent SEC defeat in the insider trading case it brought against Mark Cuban evidences that the Commission intends to carry through on Ms. White’s stated priorities, including not avoiding tough cases, which the Cuban case certainly appeared to be from the outset, years ago. On the other hand, the recent SEC “victory” in obtaining a $13 billion settlement from JP Morgan Chase certainly shows proof of the SEC’s revised settlement policy, a much tougher approach than in the past.
For a larger discussion of these two cases, please stay tuned.
If you have any questions about the SEC’s new policies or would like to discuss the legal issues involved, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
In recent remarks before the Council of Institutional Investors, Securities and Exchange Commission (SEC) Chair Mary Jo White offered additional details about the agency’s new settlement policy. The speech, entitled “Deploying the Full Enforcement Arsenal,” also detailed the SEC’s priorities in creating a tougher enforcement program.
To start, White highlighted the following as key enforcement priorities:
White also highlighted that the SEC will be “aggressive and creative in the way we use the enforcement tools at our disposal.” As she explained, this means the agency will “neither shrink from bringing the tough cases, nor fail to bring smaller ones.” White further added that the Enforcement Division will consider all the legal avenues available, including bringing negligence cases when there is not enough evidence to prove intentional wrongdoing.
White also shed further light on the SEC’s revised settlement policy, which will more frequently require defendants to admit wrongdoing. While White acknowledged that settling cases on a no-admit-no deny basis still makes sense in a large majority of cases, she also reaffirmed that “more may be required for a resolution to be, and to be viewed as, a sufficient punishment and strong deterrent message.” According to White, cases potentially requiring admissions include:
With regard to penalties, White noted that the agency plans to incorporate more forward-looking mandatory undertakings, such as requiring companies to implement new policies, procedures and compliance testing. As she noted, these sanctions are intended to prevent future wrongs rather than simply punish prior conduct.
The recent SEC defeat in the insider trading case it brought against Mark Cuban evidences that the Commission intends to carry through on Ms. White’s stated priorities, including not avoiding tough cases, which the Cuban case certainly appeared to be from the outset, years ago. On the other hand, the recent SEC “victory” in obtaining a $13 billion settlement from JP Morgan Chase certainly shows proof of the SEC’s revised settlement policy, a much tougher approach than in the past.
For a larger discussion of these two cases, please stay tuned.
If you have any questions about the SEC’s new policies or would like to discuss the legal issues involved, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!