Could Injunctions Become the SEC’s Next Headache?

As Will Rogers famously quipped, when you find yourself in a hole, stop digging.

The Securities and Exchange Commission recently learned this lesson the hard way in its long-running and ill-fated pursuit of New York-based stock trader Guy Gentile, who – unlike many others similarly situated – apparently had the resources, fortitude, and skilled legal representation to fight back. In October the SEC put down the shovel and abandoned its four-year-old case after a federal district court ruled, for the second time, that the case had no chance of success. Kudos to Mr. Gentile and his able counsel at the Ford O’Brien law firm for securing much-needed judicial precedent along the way that could significantly clarify the law governing SEC injunctions and perhaps even cause the agency to rethink its habitual approach to demanding them.

Source: Could Injunctions Become the SEC’s Next Headache?