No Longer a Slap on the Wrist: SEC Penalties and Sentences on the Rise

Deborah Connor was featured in the Private Equity Law Report coverage of a Global Enforcement & Compliance panel presented by the Women’s White Collar Defense Association in Washington, D.C., which focused on a global shift in the regulatory approach to Securities and Exchange Commission penalties leading to greater fines across more geographies and the use of a wider variety of recourse against a bigger cross-section of targets – notably individuals and corporate executives.

“The shift to individual accountability is, in part, due to regulators,” said Deborah, who participated on the panel. “The DOJ [Department of Justice] now mandates companies to provide them with all non-privileged information about all individuals involved in the misconduct, regardless of position, status, or seniority. Companies can no longer limit disclosures to those they assess to be substantially involved.”

Companies can struggle with knowing where to start, how to talk to employees, and how to weigh this step with internal discipline, as well as how to manage delays and where data privacy and employment law and international laws counterbalance the effort to obtain cooperation credit from the DOJ.

“These are real individuals in real countries, and making an assessment about whether this is an individual that should be brought to the attention of the DOJ,” Deborah added. “These are weighty issues.”

Read the full article (subscription required).