SEC Names Individuals in 80% of Enforcement Cases 

The SEC’s Director of Enforcement, Andrew Ceresney, recently asserted that 80% of SEC enforcement cases over the last 5 years involved charges against individuals.  Mr. Ceresney explained the SEC’s focus on individual liability: “Holding individuals accountable for their wrongdoing is critical to effective deterrence and, therefore, the Division considers individual liability in every case.”  In the same speech, Mr. Ceresney also described how self-reporting can reduce charges and penalties and allow for deferred or non-prosecution agreements.

OUR TAKE: The SEC does not make idle threats.  Chair Mary Jo White declared a policy of prosecuting individuals almost from the moment she took office.  (See http://blog2.cipperman.com/2013/10/sec-chairman-vows-to-deploy-the-full-enforcement-arsenal/).  The SEC Enforcement Division has vigorously pursued this policy during her tenure.

http://www.sec.gov/news/speech/ceresney-fcpa-keynote-11-17-15.html