by Brian Mahany
At the same time U.S. District Court Judge Rakoff rejected a proposed $285 million settlement with Citigroup, SEC chairwoman Shapiro asked Congress for the ability to impose higher fines.
Many commentators are saying that Shapiro’s plea is disingenuous. They may be right. It’s hard to call out Congress for not giving you more power when both the judiciary and Congress call you a paper tiger.
We are willing to give the embattled agency the benefit of the doubt. Regardless of the motivation, the SEC appears to be willing to get more serious against corporate greed and fraud.
Shapiro’s proposal seeks to allow the government to impose fines up to 3 times the amount of the fraud. That wouldn’t have mattered in the Citi case, however, as the SEC sought to settle the case for far less than the fraud amount. (The estimated loss to investors was $700 million.)
What concerns us with the Citi settlement isn’t the amount of the settlement but the distribution of the funds. Reportedly, Citi would not guarantee that the funds would be used to repay investors.
We hope Congress leave politics aside and grants the increased powers to SEC. More importantly, we hope that the agency steps up to the plate and remembers that it’s mission is to protect the public, not corporate America.
If you the victim of an investment fraud, don’t delay. Contact an experienced fraud lawyer immediately. The asset recovery and fraud lawyers at Mahany & Ertl have helped many people get back their hard earned money. If you are the victim of any type of investment fraud, contact attorney Brian Mahany directly at (414) 704-6731 or by email at .
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