Think about the priorities this reveals. Against a mammoth SEC reorg and regulatory retreat, the SEC decided this case – involving a retired executive, a now-private company, and conduct from half a decade ago where investors have apparently already been recompensed – was urgent enough to violate federal law during a government shutdown.
Koneru fired back with a highly unusual complaint seeking a declaratory judgment and injunctive relief. His case may prove defining: just how far does the Antideficiency Act’s “emergency” exception actually stretch? And can SEC staff effectively manufacture crises of their own making?
BTW, since filing this so-called emergency action, the SEC has filed exactly zero emergency motions.
Their sole filing? A motion for a two-week extension to respond to the complaint, citing that counsel “was out of the office at times during the holidays and New Year period” and has “an active caseload with a variety of matters.”
Read that again. They had five years to investigate. They claimed it was an emergency. And now they need more time because of. . . . vacation.
The SEC’s response deadline is February 17th.
Source: John Reed Stark on LinkedIn