The S.E.C.’s authority extends to civil actions, which require a lower burden of proof than the higher criminal standard of proof beyond a reasonable doubt. Nevertheless, it appears that in some recent actions – including the closely watched Mark Cuban case and ones involving accounting fraud — the S.E.C. may have pushed too far in trying to prove fraud. And now that the agency has said it would be more aggressive in seeking admission of wrongdoing in some cases, the agency will face pressure to figure out how to avoid wasting its resources on losing efforts.
via S.E.C.’s Losing Streak in Court Puts Agency in Spotlight – NYTimes.com
