Question

The SEC has regulations that begin with bringing a company public to its continued regulation. Violations of those regulations result in penalties, extending from requiring more continuing professional education to barring the firm or auditor from participating in public company services to imprisonment. Has enough been done?

Answer 1

No Enough has not been done. If any individual, broker, Company, investment consultants are found guilty,it is allowed to bring only Civil actions against the offender either in federal court or before an administrative judge.

SEC works closely to provide evidence and assist with court proceedings with law enforcement agencies for criminal cases. The punishment is mainly limited to fines, money penalties, administrative proceedings against the defaulting individual or officer. SEC has collected huge penalties from the defaulters for the suffering investors.

But the same is not enough and the main Brokers & Senior Executives of the agencies were not found guilty in most of the cases and were given monetary penalties and administrative punishments. No criminal proceedings were initiated. The big fishes are not caught which requires a drastic measure to contain wrong doing with public money. Principal defaulting authorities sitting at the Corporate helm should be subjected to criminal proceedings with necessary amendment in the Commission's jurisdiction.