The Securities and Exchange Commission (SEC) will not hesitate to file charges against accountants and auditors in district courts instead of using in-house administrative proceedings, said the agency’s Enforcement Director Gurbir Grewal at a conference on Oct. 25, 2023.
This comes as the commission is locked in a battle in a Supreme Court case—SEC v. Jarkesy—about the constitutionality of the SEC’s use of in-house judges. Arguments are set for Nov. 29. Critics of the SEC believe that the administrative enforcement program is unfair. By contrast, federal courts afford greater protections to defendants.
“We are not going to just stop holding auditors and other gatekeepers responsible when they fall short of their professional obligations just because there is some uncertainty in the court,” said Grewal at Securities Enforcement Forum hosted by Securities Docket in Washington. He spoke via a livestream.
‘Enforcement 40’ for 2020
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