SEC kicks enforcement into overdrive in 2022 | Pensions & Investments

Gurbir S. Grewal, director of the enforcement division, in a speech at the Securities Enforcement Forum on Nov. 15, noted that in the five fiscal years prior to 2022, the commission ordered more than twice as much in disgorgement as it did in penalties. “To me, that ratio is backwards because it means, on a macro level, that the potential reward for getting away with violating the securities laws was much greater than the potential downside of being caught,” he said, according to remarks posted on the SEC’s website. “If you get $2 for violating the law, but are only fined $1 if you get caught, and required to return your ill-gotten gains, some people may see that as an acceptable calculated risk.”

Source: SEC kicks enforcement into overdrive in 2022 | Pensions & Investments