SEC Enforcement Settlements Increase Overall, Study Says

Lora Bentley

The Securities and Exchange Commission is serious about enforcement. Data released Monday reveals that 2008 may be a record year for the number of SEC enforcement settlements.


InvestmentNews reported that New York-based Nera Economic Consulting is projecting a more than 5 percent increase in the number of settlements this year over 2007, from 702 to 739. When you break out the types of settlements, though, the numbers become even more interesting.


The study revealed that enforcement settlements with individuals will reach 568, but settlements with companies may drop to 171, which is "the lowest number in any year since the Sarbanes-Oxley Act," according to InvestmentNews.


Nera also pointed out that "56 percent of company settlements involve a monetary penalty, with the median company settlement valued at $1 million..." Settlements with individuals most often involved insider trading charges.

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