Monday, November 12, 2007
Increases in misleading corporate disclosure (including discloses related to backdated stock options) and insider trading cases have resulted in the SEC's filing 14% more enforcement actions than in 2006. The agency has brought 656 cases through Sept. 30, nearly 100 more than in 2006. In the insider-trading area, the SEC is focusing on "pillow-talk" exchanges of confidential corporate information by family members and Rule 10b5-1 plans that allow executives to sell shares automatically at pre-arranged time periods. CFO.com, SEC Enforcement Actions Shoot up.