US SEC to dismiss 42 enforcement cases after internal data mishap

<html xmlns=""><head><title>UPDATE 1-US SEC to dismiss 42 enforcement cases after internal data mishap</title></head><body>

Adds details throughout, updates lead paragraph

By Pete Schroeder

WASHINGTON, June 2 (Reuters) -The U.S. Securities and Exchange Commission announced Friday it had dismissed42 pending enforcement cases after discovering enforcement staff had improper access to materials meant for commission officials ruling on those cases.

The decision comes after the SEC concluded a lengthy review of a matter first raised in April 2022, when it disclosed that some of its databases had inadvertently allowed SEC enforcement staff to view legal materials meant for officials with its in-house court.

The enforcement and in-house ruling arms of the SEC are supposed to be kept completely separate from each other regarding such matters. In a statement, the SEC it regretted the lapse and was committed to fixing it.

The SEC described the improper access as effectively an accident, as administrative staff in its enforcement arm worked to track and collect all relevant materials, but some databases were not appropriately safeguarded to wall off adjudication materials. It added that in most cases, the problematic materials were not uploaded to enforcement staff until after a decision had been handed down.

An internal SEC review found that there was no evidence that the improper access had any effect on decisions made by either enforcement staff or officials reviewing those cases, according to SEC officials.

Nonetheless, the agency decided to dismiss all pending cases, primarily against individuals and smaller firms, who were impacted by the improper access. The SEC also said it was agreeing to lift industry bans on 48 people who had petitioned the SEC for that relief whose cases were also involved in the mistake.

Reporting by Pete Schroeder; Editing by Chizu Nomiyama and Diane Craft


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.