SEC flexes its muscle on accounting fraud and targets more individuals

Abstract

Purpose

To note the increase in accounting and financial reporting matters at the Securities and Exchange Commission by highlighting a number of recent cases filed by the agency.

Design/methodology/approach

The SEC recently announced the settlement or filing of a number of significant accounting fraud cases. Coupled with recent statements by the SEC and the Department of Justice, it is clear that accounting fraud is a priority and that individuals are in the cross-hairs. This article discusses a few of the recent cases and the trend toward more financial reporting and issuer disclosure cases.

Findings

The number of financial reporting and issuer disclosure cases will likely continue to increase. Individuals will be targeted in more of those cases, internal controls will be a focus, whistleblowers will continue to be important in this area, and SOX 304 clawbacks will continue to be a weapon for the SEC.

Originality/value

Practical guidance from experienced securities and financial services lawyers.

Citation

Woodcock, D. and McKown, J. (2016), "SEC flexes its muscle on accounting fraud and targets more individuals", Journal of Investment Compliance, Vol. 17 No. 2, pp. 50-53. https://doi.org/10.1108/JOIC-04-2016-0017