FY2021 a Big Year for SEC Enforcement Efforts

On November 18, the U.S. Securities and Change Fee (SEC) announced its enforcement results for the 2021 fiscal year, which ended on September 30, 2021. The SEC reported that it filed 434 new enforcement actions in FY2021, a 7% improve over FY2020. In accordance with the press launch, “[t]he SEC’s whistleblower program was critical to these efforts and had a record-breaking year.”

General, the SEC filed 697 complete enforcement actions in FY2021, together with the 434 new actions. These actions lined a huge number of securities violations, together with new rising threats in areas akin to cryptocurrency. The company obtained judgments and orders for almost $2.4 billion in disgorgement and greater than $1.4 billion in penalties.

“The SEC’s Enforcement Division is the cop on the beat for America’s securities laws,” stated Chair Gary Gensler. “As these results show, we go after misconduct wherever we find it in the financial system, holding individuals and companies accountable, without fear or favor, across the $100-plus trillion capital markets we oversee.”

“This year has seen a number of critically important and first-of-their-kind enforcement actions, as well as record-breaking achievements for our whistleblower program, which we expect will lead to even more successful actions in the future,” stated Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Undeterred by the challenges of the pandemic, the dedicated public servants in the Enforcement Division have continued to overcome obstacles to bring these cases that protect investors and promote market integrity.”

A number of the new enforcement actions taken by the SEC in FY2021 embody “involving securities using decentralized finance, or ‘DeFi,’ technology; charging securities law violations on the ‘dark web’; enforcing a key rule on the duties of municipal advisors; involving Regulation Crowdfunding; and charging an alternative data provider with securities fraud,” in keeping with the press launch.

As famous by Grewal, FY2021 was a report 12 months for the SEC Whistleblower Program. Over the course of FY2021, the SEC Whistleblower Program obtained a report 12,200 whistleblower ideas and issued a report $564 million in whistleblower awards to a report 108 people. Over the course of the 12 months, the whistleblower program issued extra awards than in all earlier years mixed.

Geoff Schweller additionally contributed to this text.

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