Highlights from the SEC’s 2007 Performance and Accountability Report
The SEC’s 2007 Performance and Accountability Report for its fiscal year ended September 30, 2007, is now available. Some of the highlights of the Report, which is available here, include:
- There was a significant reduction in the SEC’s collections activity from 2006 to 2007. According to the Report, “the variance in collection activity is due to a reduction in fair funds collections of $1,307.6 million for 2007, due to a lower volume of financial fraud cases with large settlements. In FY 2006, the SEC won fines and penalties in several large cases. These collections are expected to be distributed to harmed investors in subsequent years.” (p. 18)
- In FY 2007, the SEC distributed $580.5 million to harmed investors. (p. 18)
- In FY 2007, the SEC initiated 776 investigations, 262 civil actions, and 394 administrative proceedings. (p. 25)
- The SEC’s enforcement cases in FY 2007 resulted in a total of approximately $1.6 billion in disgorgement and penalties ordered against securities law violators. (p. 25)
- As a result of SEC enforcement cases, approximately $13.8 billion in disgorgement and penalties from FY 2003 through FY 2007 were ordered to be paid to the SEC, courts, or other appointed trustees. More than 75 percent of the total amounts ordered had been collected by the end of FY 2007. (p. 26)
- In FY 2007, 92% of the SEC’s cases were “successfully resolved,” i.e., resulted in a favorable judgment for the SEC, a settlement, or the issuance of a default judgment. (p. 27)
- In FY 2007, 54% of first enforcement actions were filed within two years of opening an investigation or inquiry, lower than the SEC’s goal of 66%. The SEC attributed this lower percentage to two factors: a higher than expected number of more complex cases (issuer reporting and disclosure cases) and the allocation of significant resources to the SEC’s effort to distribute and track Fair Funds to injured investors under Sarbanes-Oxley. (p. 27)
