SEC To Curtail Outrageous Practice
More Defendants Would Admit Guilt Under New SEC Policy
In a change of policy that comes after more than two years of public and embarrassing scoldings by a federal judge, the Securities and Exchange Commission will now force some defendants to do something they've never had to do in order to settle their case: confess.
Companies and individuals that settle a civil case with the SEC that also have admitted to or been convicted of criminal violations in a related matter will no longer be allowed to say that they "neither admit nor deny" the agency's charges, according to the agency.
The policy would end a practice that allowed such celebrated villains as Bernard Madoff -- who was sentenced to 150 years in prison for masterminding the biggest financial con job in history -- to settle charges with the SEC without admitting wrongdoing. However, it wouldn't affect most SEC settlements, which come independent of any criminal charges.
Prior to the change, the SEC, which has the power to file civil, but not criminal charges, included the boilerplate disclaimer in every settlement deal reviewed by the Center for Public Integrity in an analysis last year.
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Full article here:
http://www.huffingtonpost.com/2012/01/06/securities-and-exchange-commission-sec_n_1190596.html