Tuesday, December 12, 2006

NASAA Reports Increased Enforcement Activity

The North American Administrators Association released its 2006 enforcement action statistics today, showing an increase in the number of actions, the amount of fines, and the periods of incarcertion.

NASAA reported that there were 3,635 enforcement actions, up 23 percent from the earlier period. Money ordered returned to investors (including restitution, rescission, and disgorgement) increased 38 percent to $911 million from $660 million during the previous period. Years of incarceration as a result of securities law convictions rose 30 percent to a cumulative 935 years, compared to 718 years in the previous reporting period.

If anyone has the thought that the states are not active in enforcement actions, these statistics demonstrate otherwise.

Which brings up another point - with 53 regulators reviewing your conduct, who is your securities attorney?
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