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Under Scrutiny! Record-Breaking 2023 Numbers For The SEC Enforcement Division!

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In a notable development for fiscal year 2023, the U.S. Securities and Exchange Commission (SEC) reported 784 executed enforcement actions, obtained orders for nearly $5 billion in financial remedies, and distributed nearly $1 billion to harmed investors. The SEC’s Whistleblower Program had a record-breaking year as well, issuing nearly $600 million in awards.

The SEC executed a total of 784 enforcement actions, marking a 3% rise from the previous fiscal year. Among these, 501 were original, or “stand-alone,” actions, showing an 8% increase from fiscal year 2022. Additionally, the SEC took action against 121 issuers who allegedly failed to meet the SEC’s filing requirements.

These enforcement actions covered a wide range of areas in the securities industry, including billion-dollar fraud cases, emerging threats related to crypto asset securities, and cybersecurity issues. The SEC charged various market participants, including public companies, investment firms, gatekeepers, and social media influencers, for violations.

SEC Chair Gary Gensler emphasized the benefits to the investing public from the Division of Enforcement’s vigilant efforts. He highlighted the division’s effectiveness in holding wrongdoers accountable by meticulously following facts and the law.

Gurbir S. Grewal, the Director of the Division of Enforcement, underscored the division’s commitment to investor protection and enhancing public trust in the markets. Grewal also noted the importance of ongoing investigations and other non-public efforts that contribute to investor protection and market integrity.

The SEC achieved a significant milestone in financial remedies, obtaining orders for $4.949 billion, the second-highest amount in the regulator’s history. This sum included $3.369 billion in disgorgement and prejudgment interest, and $1.580 billion in civil penalties, both being the second-highest amounts on record. The SEC also set a record by barring 133 individuals from serving as officers and directors of public companies, the highest in a decade.In fiscal year 2023, the SEC distributed $930 million to harmed investors, marking the second consecutive year of distributions exceeding $900 million.

The SEC’s Whistleblower Program had a record-breaking year as well, issuing nearly $600 million in awards, the highest in a single year, including a record $279 million awarded to one whistleblower. The Commission received over 18,000 whistleblower tips, a record number and about 50% more than the previous year. In total, the SEC received over 40,000 tips, complaints, and referrals, up 13% from fiscal year 2022. These figures reflect the SEC’s heightened focus on enforcing compliance and protecting investors in the financial markets.

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