SEC and corporate fines

The Securities & Exchange Commission is set to issue guidelines on fines for corporate wrongdoer. SEC Chairman Christopher Cox is pushing for standards in levying fines, and would like those guidelines available to the public. The standards won’t speak to the size of fines, but will dictate when a fine is appropriate.

Some more recent penalties include:
WorldCom (MCI) – $750 million for fraudulent financial statements
Time Warner – $300 million for inflating advertising revenue at AOL
Qwest Communications – $250 million for accounting fraud

Full story here.

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