SEC Brought a Record Number of Enforcement Actions in the First Quarter of FY 2025
On January 17th, 2025, the Securities and Exchange Commission (SEC) announced that a record number of enforcement actions were brought by the agency in the first quarter of Fiscal Year 2025. For reference, that period ran from October 31st of 2024 through December 31st of 2024. Here, our Miami securities fraud attorney discusses the record number of enforcement actions initiated by the SEC in FY 2025.
SEC Ramps Up Enforcement Action: A Record Number in Q1 of FY 2025
The SEC reported a record-breaking start to fiscal year 2025. The agency filed 200 enforcement actions in the first quarter of FY 2025. For reference, that includes 118 standalone cases. October of 2024 alone saw 75 separate enforcement actions—which is the highest for any month since back in 2000. Chair Gary Gensler—who is now departing the agency as the Trump Administration enters Washington in January of 2025—praised the SEC’s Division of Enforcement for its commitment to accountability and investor protection. Mark T. Uyeda has been named the Acting Chairman of the SEC by President Trump. Paul Atkins is the President’s nominee for the position.
Note: The SEC also states that its programs encouraging the proactive self-reporting of securities law violations continue to be successful.
Most Common Reasons SEC Takes Enforcement Action for Securities Law Violations
The SEC can bring enforcement action for a wide range of different reasons. Indeed, securities law violations take many different forms. Some of the most common examples of securities law violations that lead to enforcement actions by federal regulators include:
- Financial Misstatements: Accurate financial disclosures are a must. The SEC can take enforcement action against companies (and individuals) that misrepresent their financial performance through false or misleading accounting practices. Specific violations may include inflating revenues, understating liabilities, or concealing losses.
- Misleading Disclosures to Investors: The SEC takes material misrepresentations very seriously. Misleading or incomplete disclosures could be a violation of securities law. Investors have a general right to accurate, timely financial disclosures.
- Undisclosed Conflicts of Interest: Broadly speaking, broker-dealers and financial advisory firms are required to disclose conflicts of interest that could affect their advice or recommendations. When these conflicts are hidden, investors may unknowingly be placed in disadvantageous positions or exposed to unnecessary risks. The SEC may take action.
- Insider Trading: Insider trading occurs when people use non-public, material information to buy or sell securities—and, in doing so, gains an unfair advantage over the investing public. The SEC can take enforcement action to address allegations of insider trading.
Speak to Our Miami, FL Securities Fraud Lawyer Today
At Carlson & Associates, P.A., our Miami investment fraud attorney has the professional experience that investors can trust. If you have any questions about an investment fraud case, please do not hesitate to contact us today for a case review. With a legal office in Miami, we are proud to fight for the rights and interests of investors throughout South Florida.
Source:
sec.gov/newsroom/press-releases/2025-26
