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SEC Issues Statement Concerning Financial Penalties

Commission Announcement, January 4, 2005: “Today the Commission announced the filing of two settled actions against corporate issuers, SEC v. McAfee, Inc. (filing, 42 pages, PDF) and In the Matter of Applix, Inc. In one, the company will pay a civil money penalty; in the other, a penalty is not part of the settlement. The question of whether, and if so to what extent, to impose civil penalties against a corporation raises significant questions for our mission of investor protection…We proceed from the fundamental principle that corporate penalties are an essential part of an aggressive and comprehensive program to enforce the federal securities laws, and that the availability of a corporate penalty, as one of a range of remedies, contributes to the Commission’s ability to achieve an appropriate level of deterrence through its decision in a particular case.”
Related references:

  • Litigation Release No. 19520 / January 4, 2006, Accounting and Auditing Enforcement Release No. 2360 / January 4, 2006, Securities and Exchange Commission v. McAfee, Inc., Civil Action No. 06-009 (PJH) (N.D. Cal.) (January 4, 2006)
  • Administrative Proceeding Release No. 33-8651, In the Matter of Aplix, Inc.
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