Wednesday, February 9, 2005

It Could Get a Bit More Expensive to Violate the Securities Laws

The SEC has raised the maximum Civil Monetary Penalty it can impose for violations of various provisions of the federal securities laws (including the Sarbanes-Oxley Act), as detailed in a final rule adopted by the Commission that becomes effective on Feb. 14 -- Happy Valentine's Day! (Rule available here).  The changes range from $5,000 to $50,000, depending on the particular provision and type of defendant (individual, corporation, broker-dealer, etc.) that permits the Commission to seek a CMP.  While the increases are not particularly significant, and many cases involving CMPs are for less than the statutory maximum, the change will likely affect the calculus for settlement negotiations because the SEC's starting point on an acceptable penalty most likely will be raised. (ph) 

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/02/it_could_get_a_.html

Civil Enforcement, Securities | Permalink

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