SEC to Bring New Kinds of Cases On Financial Reporting, FCPA Violations

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By Rob Tricchinelli

May 7 — The Securities and Exchange Commission will bring new kinds of enforcement cases for financial reporting and Foreign Corrupt Practices Act violations in the coming months, Enforcement Director Andrew Ceresney said May 7.

“You’re going to see some very significant actions in the next six months,” Ceresney said at the Rocky Mountain Securities Conference in Denver. He said they would be “really first of their kind [and] strong message cases in a whole host of areas.”

There will be “significant cases against audit firms” as well as a few FCPA cases against individuals, he said, but didn't elaborate further.

Newman Downplayed

At the same conference, enforcement officials also downplayed the effect of the Second Circuit's decision in United States v. Newman.

That decision vacated insider trading convictions and heightened the burden for proving downstream tippee liability.

“Many cases won’t raise that issue,” Ceresney said. “It’s not typical that an insider is going to provide information just willy-nilly to somebody else. There’s usually going to be some benefit, something they’re getting in return.”

He also said the SEC can bring cases in other circuits when appropriate.

“I’m not sure it’s actually as significant as the attention that’s been paid to it,” Joseph Brenner, chief counsel in the Enforcement Division said. “We just don’t have that many cases” involving “really long tipping chains,” he added.

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To contact the editor responsible for this story: Phyllis Diamond at