SEC Enforcement Yields $5B in Financial Remedies in 2023

The U.S. Securities and Exchange Commission filed 784 enforcement proceedings in the fiscal year that ended in September, a 3% increase from the previous year, raking in nearly $5 billion in penalties and other financial remedies, according to the agency.

Following last year’s record of $6.4 billion, the total financial remedies were the second largest in SEC history, comprising $3.4 billion in disgorgement and interest, as well as $1.5 billion in civil penalties.

The agency’s whistleblowing program also set records, awarding about $600 million, the most ever given in a single year. The program received nearly 18,000 tips, 50% higher than last year.

“Last fiscal year’s results demonstrate yet again the Division’s effectiveness — working alongside colleagues throughout the agency — in following the facts and the law wherever they lead to hold wrongdoers accountable,” said SEC Chair Gary Gensler.

Furthermore, the SEC prohibited 133 people from serving as directors or officials of public firms, the most in a decade. Settlements with 25 broker-dealers, advisors, and others regarding workers’ use of personal devices and apps, including WhatsApp, were included in the SEC’s tally.

As a result of ongoing efforts to ensure industry compliance, the agency was able to address extensive violations of marketing rules. In last year’s fiscal year alone, the Commission fined nine registered investment advisors a total of $850,000 over such violations.

High-profile litigation against individuals in the cryptocurrency space, such as FTX creator Sam Bankman-Fried, were also filed this year.