Article by Bruce Ericson, Mark R. Hellerer, David Oakland and Walter J. Robinson
In a report that may signal a new approach to securities law enforcement with respect to corporations, the Securities and Exchange Commission (SEC) recently decided not to take action against a company whose books and records were inaccurate and whose financial reports were misstated. The SEC declined action because the company promptly investigated the violations, disclosed them fully, and cooperated with the SEC’s investigation. Report of Investigation (Seaboard Corporation), Exchange Act Release No. 44969 (Oct. 23, 2001).
The report is significant because it sets forth a number of criteria that the SEC will apply in future cases in evaluating whether to charge companies with violations of federal securities laws.
