New Report Indicates Increasing SEC Actions Against Businesses

A new report published by the NYU Pllack Center for Law & Business and Cornerstone Research indicates that the number of actions the Securities and Exchange Commission (SEC) has brought against public companies and their subsidiaries has increased recently.

According to the report, the SEC brought 84 different actions against public entities and their subsidiaries in the 2015 fiscal year. This represents a 50 percent increase in the enforcement actions since the 2014 fiscal year. Since the 2016 fiscal year began, there have been 43 enforcement actions brought forth, which means the agency is on pace to once again exceed the previous year’s total.

Other findings from the report include:

  • Between 2010 and 2014, there were more than twice as many enforcement actions filed against public companies than subsidiaries. However, that number has reversed. Now, in the 2015 and 2016 fiscal years, there have been 49 percent more actions brought forth against subsidiaries than public companies.
  • Between 2010 and 2016, the SEC brought more charges against subsidiaries of financial firms than their publicly traded parent companies.
  • About 88 percent of actions in the first half of the 2016 fiscal year were brought as administrative proceedings.
  • About 98 percent of actions brought by the SEC in the first half of the 2016 fiscal year were settled on the very day they were initiated, representing an increase of 94 percent from the 2015 fiscal year.

The SEC continues to seek out wrongdoing within businesses and public agencies, providing awards to those who uncover fraud and other illegal issues. To learn more about how you can protect your business or organization, consult the dedicated whistleblower attorneys at Whistleblower Law for Managers in Dallas, Texas.