The Securities and Exchange Commission announced it had filed 583 enforcement actions during the 2024 fiscal year, and obtained a record $8.2 billion in remedies.
The commission said its actions represent a 26 percent decline in total enforcement actions compared to 2023, but that the total remedies is the highest amount it has ever obtained. Of the enforcement actions, 431 were stand-alone actions, while 93 were follow-on administrative proceeding to bar or suspend individuals form certain functions based on criminal convictions, civil injunctions or other orders. The commission said there were 59 actions against issuers who were delinquent in making required filings.
“The Division of Enforcement is a steadfast cop on the beat, following the facts and the law wherever they lead to hold wrongdoers accountable,” said SEC Chair Gary Gensler. “As demonstrated by this year’s results, the Division helps promote the integrity of our capital markets to benefit investors and issuers alike.”
Of the financial remedies, $6.1 billion was from disgorgement and prejudgment interest, also a record, while $2.1 billion came from civil penalties, the second highest amount on record. Nearly 56 percent of the $8.2 billion was attributable to a monetary judgment obtained following the SEC’s jury trial win against Terraform Labs and Do Kwon, who were charged with one of the largest security frauds in U.S. history.
“In fiscal year 2024, the Division continued to vigorously enforce the federal securities laws by recommending to the Commission high-impact enforcement actions addressing noncompliance throughout the securities industry and resulting in robust financial remedies,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “At the same time, market participants across the spectrum – from public companies to major broker-dealers and advisory firms – stepped up efforts to self-report, remediate, and meaningfully cooperate with our investigations, answering our call to foster a culture of compliance.”