The irony here should not be missed. In the Citigroup case, the SEC is insisting that Rakoff must enjoin Citigroup (which is already subject to multiple SEC injunctions), but in the Falcone case, the SEC appears to be waiving any injunction against an arguably more culpable controlling person who will retain control of a public company that will continue to serve investors as an investment advisor. This disparity is hard to rationalize. The message of the Falcone settlement to the defense bar is clear: Be Stubborn, Resist, and Eventually the SEC Will Yield.
via Securities Enforcement: 2013 Report Card — New York Law Journal
