SEC’s Khuzami Describes Increased Enforcement Activity by the Numbers
In a recent speech, Robert Khuzami, the SEC Director of Enforcement, highlighted the increased enforcement activity during his first year in office. According to Mr. Khuzami, the SEC opened twice as many formal investigations (496 vs. 233), increased disgorgement orders by 170% ($2.09 Billion vs. $774 Million), increased penalties by 35% ($345 Million vs. $256 Million) and sought significantly more temporary restraining orders (up 82%) and asset freezes (up 78%). Summing up his statistics, Mr. Khuzami said, “And if past is in fact prologue, then I am very optimistic about what the future holds for the Enforcement Division…”
OUR TAKE: Compliance professionals have probably felt the impact of the increased enforcement activity. Mr. Khuzami suggests that the trend will continue.