Sovereign - Unregistered - Unincorporated Association/Society Private Law
Securities & Exchange Commission
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8a of the Securities Act of 1933, Section 21c of the Securities Exchange Act of 1934, Sections 203(E) and 203(F) of the Investment Advisers Act of 1940, Section 9(B) of the Investment Company Act of 1940 and Rule 102(E) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions and A Cease-and-Desist Order
This page lists recent SEC trading suspensions. The federal securities laws allow the SEC to suspend trading in any stock for up to ten trading days when the SEC determines that a trading suspension is required in the public interest and for the protection of investors. You'll find answers to many of your questions about trading suspensions — including how they differ from trading halts — in Fast Answers.
As of February 20, 2007, the staff of the Commission will send copies of a Commission Order of Suspension of Trading pursuant to Section 12(k) of the Securities Exchange Act of 1934 solely to parties (the issuer), the Depository Trust Corporation, and National Securities Clearing Corporation.
Chairman and Commissioners
How Investigations Work
The Enforcement Division assists the Commission in executing its law enforcement function by recommending the commencement of investigations of securities law violations, by recommending that the Commission bring civil actions in federal court or before an administrative law judge, and by prosecuting these cases on behalf of the Commission. As an adjunct to the SEC's civil enforcement authority, the Division works closely with law enforcement agencies in the U.S. and around the world to bring criminal cases when appropriate.
The Division obtains evidence of possible violations of the securities laws from many sources, including market surveillance activities, investor tips and complaints, other Divisions and Offices of the SEC, the self-regulatory organizations and other securities industry sources, and media reports.
All SEC investigations are conducted privately. Facts are developed to the fullest extent possible through informal inquiry, interviewing witnesses, examining brokerage records, reviewing trading data, and other methods. With a formal order of investigation, the Division's staff may compel witnesses by subpoena to testify and produce books, records, and other relevant documents. Following an investigation, SEC staff present their findings to the Commission for its review. The Commission can authorize the staff to file a case in federal court or bring an administrative action. In many cases, the Commission and the party charged decide to settle a matter without trial.
Common violations that may lead to SEC investigations include:
Misrepresentation or omission of important information about securities
Manipulating the market prices of securities
Stealing customers' funds or securities
Violating broker-dealers' responsibility to treat customers fairly
Insider trading (violating a trust relationship by trading on material, non-public information about a security)
Selling unregistered securities.
Whether the Commission decides to bring a case in federal court or within the SEC before an administrative law judge may depend upon various factors. Often, when the misconduct warrants it, the Commission will bring both proceedings.
Civil action: The Commission files a complaint with a U.S. District Court and asks the court for a sanction or remedy. Often the Commission asks for a court order, called an injunction, that prohibits any further acts or practices that violate the law or Commission rules. An injunction can also require audits, accounting for frauds, or special supervisory arrangements. In addition, the SEC can seek civil monetary penalties, or the return of illegal profits (called disgorgement). The court may also bar or suspend an individual from serving as a corporate officer or director. A person who violates the court's order may be found in contempt and be subject to additional fines or imprisonment.
Administrative action: The Commission can seek a variety of sanctions through the administrative proceeding process. Administrative proceedings differ from civil court actions in that they are heard by an administrative law judge (ALJ), who is independent of the Commission. The administrative law judge presides over a hearing and considers the evidence presented by the Division staff, as well as any evidence submitted by the subject of the proceeding. Following the hearing the ALJ issues an initial decision that includes findings of fact and legal conclusions. The initial decision also contains a recommended sanction. Both the Division staff and the defendant may appeal all or any portion of the initial decision to the Commission. The Commission may affirm the decision of the ALJ, reverse the decision, or remand it for additional hearings. Administrative sanctions include cease and desist orders, suspension or revocation of broker-dealer and investment advisor registrations, censures, bars from association with the securities industry, civil monetary penalties, and disgorgement.