What to Expect in SEC Enforcement Actions
One of the questions on the minds of readers of the Financial Fraud Law Blog and the Financial Fraud Law Report is what kinds of financial fraud the SEC is likely to focus on for the balance of the year. Matthew Nielsen and Crystal Jamison of Andrews Kurth LLP, in an article in the current issue of the Financial Fraud Law Report, suggest that the SEC’s focus is likely to range from more Dodd-Frank initiatives and more Financial Crisis cases to a shift to SEC administrative proceedings and an increased focus on compliance programs.
The article, “What to Expect in SEC Enforcement Actions” (sub. req.) concludes that the SEC also will continue to be active in its designated and traditional high priority areas, likely focusing on Asset Management (hedge funds, investment advisers, and private equity), Market Abuse (large-scale insider trading and other market manipulation schemes), FCPA, and insider trading cases. Also, with the SEC’s Whistleblower program underway, the authors believe that the SEC will likely institute more investigations and enforcement actions based on fraudulent financial reporting, which has waned over the last few years.