SEC Enforcement Division Reviews FY 2018 Enforcement Actions

In its second annual report, the SEC Enforcement Division (the "Division") highlighted significant enforcement actions filed in FY 2018, discussed key initiatives and described ongoing agency priorities.

The Division reported a "high level" of enforcement activity, citing 821 actions and over $3.9 billion in disgorgement and civil penalties in FY 2018. The Division claimed success on a qualitative basis, highlighting "significant actions" against important market participants, protecting retail investors, obtaining meaningful remedies and addressing emerging risks. The Division also identified significant challenges, including (i) staffing constraints due to budgetary limitations, (ii) the diminished ability to obtain disgorgement in long-running frauds following the Supreme Court's decision in Kokesh v. SEC and (iii) the divergence of resources to reopen older trial matters following the constitutional challenge to SEC-appointed administrative law judges in Lucia v.