SEC settling with more individual defendants

Agency has settled 286 cases with individuals in first half of FY2012

Over the past year, the Securities and Exchange Commission (SEC) has been taking a tougher stance against corporate criminals—particularly those who engage in insider trading. According to a new report, the agency’s efforts have paid off with an increase in settlements, including those with individual defendants.

According to NERA Economic Consulting—a global company that provides economic analysis and recommendations to corporations, governments, law firms and regulatory agencies—the SEC has settled 286 cases with individual defendants in the first half of its 2012 fiscal year. NERA speculates that the agency is on track to achieve a 20 percent increase in individual settlements over FY2011.

The report found that the increase in individual settlements is mostly due to a jump in insider trading cases, including a $92.81 million settlement with Galleon Group founder Raj Rajaratnam, who currently is serving 11 years in prison.

The SEC’s aggressive stance also is accounting for an overall increase in other nonindividual settlements. In the first half of FY2012, the agency has settled with 379 defendants, which puts it on track to reach a 13 percent increase in settlements over FY2011 and the busiest year for SEC settlements since 2005.

Read Thomson Reuters for more about the surge in SEC settlements.

For more InsideCounsel stories about insider trading, read:

Gupta decides not to testify

Lawyer gets 12 years in prison for $37 million insider-trading scheme

Gupta’s lawyer suggests others leaked info on P&G

Ex-Yahoo executive, fund manager plead guilty to insider trading

Prosecutors crack down on “criminal club” insider-trading scheme

SEC charges Ameriprise financial adviser with insider trading

4 men plead not guilty in Dell insider trading case

6-month prison sentence served to ex-lawyer for insider trading

SEC sues ex-Ernst & Young manager for insider trading

Ashley Post

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