Recent SEC actions draw concerns

Stock Broker Fraud blog offers an interesting perspective on some recent SEC actions. The SEC is protecting Tenet Healthcare Corp. from shareholder lawsuits even though the company has committed fraud. Tenet is paying $10 million to settle allgations of failure to disclose a scheme to inflate company earnings, without admitting or denying the allegations. The SEC, however, will not allow shareholders to sue the company for forecasts based upon bogus earnings information.

The SEC commissioners are also seen as trying to weaken Sarbanes-Oxley in the face of claims that the regulation is difficult and expensive for companies.

A new SEC policy limits staff attorneys in levying vines on companies violating securities law. Under the new procedures, the attorneys must obtain authorization from an SEC commissioner before negotiating fines.

Related posts:

1. Tenet Healthcare will pay $725 to settle Medicare case
2. Whistleblower Cases in 2006
3. SEC charges 3 former KPMG partners for altering audit working papers
4. IRS Starts Using Private Companies to Collect Taxes
5. Cingular Sues Insurance Companies and Brokers For Fraud