Scottrade Pleads Guilty And Settles: The SEC’s New Policy

Although neither-admit-nor-deny settlements are to remain the norm, according to the SEC, admission as part of settlements will also become part of the SEC's policy. Scottrade v SEC is the latest settlement based on this "new" policy, in which Scottrade admitted it had violated civil laws by providing incomplete trading data to the SEC and agreed to pay a USD 2.5 million fine to settle the case.

SEC chair Mary Jo White unveiled the "new" settlement policy last year. The SEC will decide on a case-by-case on when to seek an admission, depending on the seriousness of the fraud. Admissions may, in particular, be appropriate in cases where for instance a large number of investors were harmed or put at risk, where defendants engage in egregious misconduct, or if defendants unlawfully obstruct the SEC's investigative process.