Tough Tone at the Top of the SEC
Financial Fraud Law Report
Matthew Bender & Company, Inc.
The SEC’s aggressive stance under Chairman Mary Jo White’s leadership portends a flurry of enforcement activity over the next several years. There have been recent signs of skepticism at the Securities and Exchange Commission regarding financial statement reporting practices and indications that the SEC is focusing on public company officers, directors, and auditors as targets of potential enforcement actions. Since Mary Jo White was confirmed as the new chairman in April, and George Canellos and Andrew Ceresney were named co-directors of the Division of Enforcement later that month, a number of enforcement actions and SEC statements suggest a heightened vigilance, particularly with respect to potential corporate accounting failures.