The Week In Securities Litigation: First Co-Directors Of SEC's Enforcement Division Take The Helm

The Week In Securities Litigation: First Co-Directors Of SEC's Enforcement Division Take The Helm

George Canellos and Andrew Ceresney, two former colleagues in the Manhattan U.S. Attorney's Office, became the first Co-Directors of the SEC's Enforcement Division. The Division also secured a ruling this week which will permit its subpoena enforcement action against the PRC based affiliate of Deloitte to move forward. The ruling may set the stage for a precedent setting clash of U.S and PRC law on the question of whether audit work papers for a U.S. registered issuer based in the PRC and audited by a firm there are available to the SEC.

The Commission resolved an FCPA case this week in conjunction with the DOJ. For the first time the SEC and the DOJ both entered into non-prosecution agreements with the company. This is the first FCPA case settled by the SEC with such an agreement. It is also the first FCPA case resolved with two non-prosecution agreements. The Commission, in addition, filed a settled financial fraud action and an insider trading case involving a corporate executive. Finally, the PCAOB announced a new cooperation policy, encouraging cooperation with its investigations.


Remarks: Commissioner Luis A. Aguilar delivered remarks titled "Institutional Investors: Power and Responsibility" to the Georgia State University Department of Finance CEAR Workshop, Atlanta, Ga. (April 19, 2013). The remarks focused on the important role institutional investors, particularly regarding good disclosure which can aid a company, and in overall corporate governance (here).


Remarks: Chairman Gary Gensler delivered remarks titled "Benchmark Interest Rates" at the London City Week (April 22, 2013). His remarks focused on the challenges of transitioning from LIBOR (here).

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For more commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.

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