what DOES the SEC do to a fraudulent American company?
In Enron’s case the SEC charged not just top executives, but also the companys lawyers, banks and auditors for violating Securities and Insider Trading laws and penalised them. Thats not all; the SEC aided the US Department of Justice in filing criminal charges against founder Kenneth Lay, CEO Jeff Skilling, CFO Andrew Fastow and Treasurer Ben Glisan all of whom are serving jail sentences of between 5 and 24 years But when it comes to Satyam experts say action is unlikely to be as stringent or as far reaching Valerie Demont, Partner, Baker Mackenzie It is more of a deference to the home country laws or home country regulators. There isnt any formal requirement that the SEC or the district attorneys take that position but as part of the broader cooperation among regulators nad because most of the aggrieved investors in those cases would be investors in the foreign country, the regulators here will take a back step approach to some of the prosecution. It doesnt mean that they will stay i
