Regulatory: SEC Modifies Settlement Language for Cases Involving Criminal Convictions

Foley Partner Lisa Noller authored an article on the Securities and Exchange Commission’s (SEC) announcement that it would no longer allow a defendant to “neither admit nor deny” the allegations raised against it by the SEC when the defendant has already admitted to, or been convicted of, criminal violations stemming from the same conduct. She says the policy modification underscores the need for counsel representing subjects of an SEC inquiry to determine at the outset whether the SEC has referred the case to the Department of Justice for parallel criminal proceedings.