SEC Enforcement Division: 2019 Fiscal Year Report

Last week, the Securities and Exchange Commission’s Division of Enforcement issued its annual report for 2019. Based on, and in keeping with its stated five core principles that include: (1) focus on the Main Street investor, (2) focus on individual accountability, (3) keep pace with technological change, (4) impose remedies that most effectively further enforcement goals, and (5) constantly assess the allocation of resources, the SEC brought a mixture of 862 enforcement actions, including 526 standalone actions. In total, the SEC obtained judgments and orders totaling more than $4.3 billion in disgorgement and penalties.

The majority of the SEC’s 526 standalone cases in 2019 concerned investment advisory and investment company issues (36%). Securities offerings (21%), and issuer reporting/accounting and auditing (17%) matters, actions against broker-dealers (7%), insider trading (6%), and market manipulation (6%), as well as other areas such as FCPA (3%) and Public Finance (3%) made up the rest.

A copy of the 2019 Annual Report is available here.

Author: Dexter Johnson

The author is a an attorney who for the past 14 years has concentrated his practice in representing, successfully, investment advisers, broker-dealers, corporations and individuals who are subject to SEC, FINRA, State or other regulations and who may be the subject of regulatory examination, review or investigation. He formerly worked at the SEC. His regulatory and litigation experience has encompassed virtually every type of securities issue in the industry. He has also negotiated favorable outcomes in many of these matters for his clients.