The Frankowski Firm

SEC TO DEMAND ADMISSION OF WRONGDOING IN SOME CASES

According to this article at Reuters.com, the Securities and Exchange Commission will no longer let companies settle civil cases with no admission of wrongdoing if the company has already admitted wrongdoing in a parallel criminal case.

This change comes after previous cases where a civil defendant, after admitting guilt in a criminal case, was allowed to include “neither admits nor denies” language in civil settlements with the SEC.

One notable example cited by the article was Bernie Madoff, who plead guilty to criminal charges in 2009 revolving around his participation in an historic Ponzi scheme, yet was permitted to neither admit nor deny the civil allegations against him in an SEC settlement.

Read the entire article at the following link:  http://www.reuters.com/article/2012/01/06/us-sec-policychange-idUSTRE8051VB20120106


If you have a legal question about an investment or think you have been the victim of investment fraud, please contact the attorneys at The Frankowski Firm at 888-741-7503 to discuss your potential legal remedies.

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