US SEC obtained US$6.4b from enforcement in fiscal 2022

THE US Securities and Exchange Commission (SEC) obtained US$6.4 billion from enforcement actions, including US$4 billion in penalties, in fiscal 2022, the agency’s chair Gary Gensler said on Wednesday (Nov 2).

The large number of levies – collected in fines, judgements and other fees from about 700 enforcement actions – would mark a record, underscoring the Wall Street regulator’s more aggressive stance against corporate wrongdoing under Democratic leadership.

The total levied is higher than the previous year’s US$3.9 billion the SEC obtained from 697 actions and than 2020’s record of US$4.7 billion across 715 cases, according to a review of SEC’s previous enforcement results.

Gensler highlighted the SEC’s enforcement activity in the year ended September 30 in prepared remarks at a Practicing Law Institute event. The agency is expected to publish its full enforcement report sometime this month.

The year’s enforcement activity included several large resolutions, including a US$675-million penalty against Germany’s Allianz to resolve probes over the collapse of a group of investment funds and penalties against major Wall Street banks including Barclays, Bank of America, Goldman Sachs, and JPMorgan after staff discussed deals and trades on their personal devices and apps.

The year’s charges also included US$200 million settlement with Boeing to over charges it misled investors about its 737 MAX and a fine against BlockFi Lending with failing to register a crypto lending product. REUTERS