SEC Will Only Target Directors in Egregious Cases
Securities and Exchange Commission enforcement cases alleging violative behavior by corporate directors are rare and will only be initiated in clear cases of misconduct or when obvious signs of violative behavior are ignored, Lara Shalov Mehraban, associate director in the agency’s New York Regional Office, said in a report posted by BloombergBNA.
“Mehraban attempted to allay concerns voiced by corporations and their lawyers about the SEC enforcement cases against corporate directors and other gatekeepers, such as compliance officers, who may try to fix compliance problems and find themselves entangled in an agency investigation,” according to the report.
“While recent SEC enforcement cases have involved directors, Mehraban said such cases aren’t common and shouldn’t concern corporate directors and officers faithfully carrying out their mandates,” the report continues.