SEC OIG Audit: Division of Enforcement's Disgorgement Waivers

Discussion in 'Wall St. News' started by nutmeg, Feb 5, 2009.

  1. The audit report found many instances where Enforcement did not follow its own procedures and failed to ensure that defendants provided accurate assessments of their financial condition or submitted supporting documentation for assets, liabilities, income and expenses reported on defendants’ Sworn Financial Statements.

    In addition, the audit found that Enforcement staff failed to obtain credit reports, bank statements, or income tax returns which are necessary to corroborate a defendant’s financial status.

    Our audit found that there were $177,605,521.03 in total waivers granted based on inability to pay among other policy reasons, for the period of FY 2006 through May 31, 2008.

    In light of the large amount of disgorgements being waived and the significant findings of this audit report, we strongly urge Enforcement to attempt to improve its process by fully implementing all of the OIG’s recommendations.