The U.S. Securities and Exchange Commission filed a record number of enforcement actions in the past fiscal year, the SEC said Wednesday.
The SEC said that it filed 735 enforcement actions in the year (ended September 30), which is more than ever filed in a single year in SEC history. It also ordered more than US$2.8 billion in penalties and disgorgement due to its enforcement actions.
The results come following the enforcement division’s most significant reorganization since it was established in the early 1970s. As part of that effort the SEC flattened its management structure, revamped the way it handles tips and complaints, facilitated faster prosecution of wrongdoers through a program that encourages cooperation in SEC investigations, and created national specialized units in five priority areas involving complex and higher risk areas of potential securities laws violations, among other things.
Among the cases filed by the SEC in fiscal 2011 were 15 separate actions naming 17 individuals, including 16 CEOs, CFOs and other senior corporate officers, involving wrongdoing related to the financial crisis. Insider trading cases also are on the upswing with 57 actions filed in the year, up 8% from the previous year. And, the SEC brought 89 actions for financial fraud and issuer disclosure violations.
Additionally, the SEC increased its number of enforcement actions related to investment advisers and broker-dealers during the past fiscal year. The agency filed a total of 146 enforcement actions related to investment advisers and investment companies, a single-year record and 30% increase over fiscal 2010. It also brought 112 enforcement actions related to broker-dealers, a 60% increase over last year.