Enforcement staff viewed legal materials meant for in-house court
The Securities and Exchange Commission (SEC) recently announced that it dismissed 42 of its enforcement cases linked to inappropriately circulated legal materials.
In April 2022, the SEC became aware that some of its databases meant for exclusive use by its in-house court were able to be seen by SEC enforcement staff. For consistency and legal reasons, the SEC’s enforcement section and legal section are kept completely separate from each other during its case review process.
The decision to dismiss these 42 cases came after the SEC conducted a year-long investigation into the matter. They found no evidence that the enforcement staff’s inadvertent access to legal documents impacted case decisions in any way.
As the Lord Leads, Pray with Us…
- For Chairman Gary Gensler to seek God’s direction as he heads the commission.
- For members of the SEC to be discerning as they endeavor to protect investors and promote a healthy market environment.
Sources: Reuters, Wall Street Journal
