SEC to Require Admission of Wrongdoing in Some Securities Fraud Cases

by Wall Street Fraud on January 25, 2012

Philadelphia Investment fraud attorneyThe Securities and Exchange Commission will no longer allow companies settle civil cases without admitting or denying the charges if they have already admitted wrongdoing in corresponding criminal cases. According to the SEC, it is "unnecessary" for the SEC to include a "neither admit nor deny" provision if a defendant had already been criminally convicted of the same conduct.

As noted by Reuters, the inconsistency of the prior policy was particularly apparent in the Bernard Madoff case. He pleaded guilty for his role in a multi-billion dollar Ponzi scheme in 2009, but neither admitted nor denied the allegations in a settlement with the SEC.

The change also follows criticism that the agency allows banks and other companies to get off too easy, particularly when many are “repeat offenders.” It also comes just over a month after a federal judge rejected a proposed $285 million settlement between the SEC and Citigroup, in part because the bank had not admitted to any wrongdoing.

At Wall Street Fraud, we are dedicated to offering assistance to those who have been hurt by improper corporate or investment practices.

If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud, please contact us today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

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