SEC Enforcement
The SEC's Division of Enforcement investigates and prosecutes violations of federal securities laws including fraud, insider trading, and disclosure failures.
What is SEC Enforcement?
SEC enforcement refers to the investigative and litigation activities of the Securities and Exchange Commission's Division of Enforcement, which identifies and prosecutes violations of federal securities laws. The SEC may open formal investigations using subpoena power to gather evidence, and can resolve cases through administrative proceedings (handled internally) or civil actions in federal court. Available remedies include disgorgement of ill-gotten profits, civil monetary penalties, injunctions, officer and director bars, and license suspensions. For the most serious fraud cases, the SEC refers matters to the Department of Justice for criminal prosecution. The SEC publishes all enforcement actions on its website, creating a public record of violations.
Example
In 2022, the SEC charged Theranos founder Elizabeth Holmes with wire fraud and conspiracy following a multi-year investigation into the blood-testing startup's false claims about its technology. The SEC's civil enforcement parallel to the DOJ criminal case resulted in Holmes being barred from serving as an officer or director of a public company for 10 years, in addition to her criminal conviction.
Source: SEC — Enforcement Division